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Middle East Ammonia Market - By Type (Anhydrous Ammonia, Aqueous Ammonia), By Application (Fertilizers, Refrigeration, Pharmaceuticals, Water Purification Chemicals) & Forecast, 2022-2028

  • Report ID: GMI5255
  • Published Date: Apr 2022
  • Report Format: PDF

Middle East Ammonia Market Size

Middle East Ammonia Market size exceeded USD 6.5 billion in 2021 and is estimated to grow at over 3.5% CAGR from 2022 to 2028. Large production capacity along with increasing usage as a refrigerant will positively drive the market growth.

Middle East Ammonia Market

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Positive application outlook in industries such as refrigeration, fertilizer, pharmaceuticals, chemicals, and water purification are propelling the ammonia market growth in the Middle East region. The Middle East displays great potential for processed meat & dairy products and holds a major share in the global trade. Advancements in cold chain facilities for food & raw material storage & distribution will promote the ammonia demand as a refrigerant. The increased export & trade of meat & fish through cold chains has also facilitated the market expansion.

Middle East led by Saudi Arabia is among the leading producers of ammonia and nitrogen fertilizers across the world. Saudi Arabia is among the leading exporters of fertilizers. Suppliers in the region contribute extensively to the global markets by exporting around 3 million tons of ammonia annually. Urea is among the key application areas of the product, and the Middle East urea production was around 22 million tons in 2017.

Natural gas is the key raw mateial for prodution of ammonia, accouting for nearly half of the product cost structure. Haber-Bosch Process is among the most common ammonia production methods via natural gas. The low cost of natural gas in the region has resulted in a reduced cost of ammonia production, thereby supporting the business expansion.

However, fluctuations in natural gas production is among the key factors resulting in price variations for the end-product. Furthermore, the COVID-19 pandemic had a limited impact on the ammonia market as the key application industries such as fertilizers were not affected at a major level in the region.

Ammonia is one of the base ingredients of dyes and has witnessed growth in demand in manufacturing industries, supporting the business advancement. The use of ammonia in the expanding textile and other chemical markets has increased significantly, strengthening the product demand. Moreover, the curing effects of the product in preventing & treating fainting & dizziness provide a growing market in the pharmaceutical sector thus driving the industry outlook.

Middle East Ammonia Market Analysis

  Middle East Ammonia market from anhydrous ammonia

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Middle East Ammonia market from anhydrous ammonia type segment is expected to surpass USD 5.5 billion by 2028. It is a colorless non-flammable liquified gas and is a pure form of ammonia with no water content. It is manufactured through the haber-bosch process that combines hydrogen and nitrogen by using pressurized and heated catalysts.

It is the most efficient and widely used source of nitrogen fertilizer for crops such as wheat and corn. Increasing usage of anhydrous ammonia owing to its medicinal and cleaning properties along with cost-effectiveness will promote product demand over the forecast timeframe.

Anhydrous ammonia is widely used to manufacture chemical fertilizers including ammonium phosphate, urea, and ammonium nitrate. Rising inclination toward cleaning and sanitation due to increased well-being and health awareness amidst pandemic has boosted the demand for household & industrial cleaners, which in turn accelerates the market statistics.

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Middle East Ammonia market from fertilizer-based applications is likely to cross USD 6.6 billion by 2028. The growing focus of the agricultural sector on fertilizers and their variants to enrich the soil for attaining a better crop quality will add to the market growth. The use of fertilizers is essential & increasing in the diverse climatic conditions faced by farmers and agronomists, thereby providing a boost to the overall market demand.

Several initiatives are taken by the governments to promote awareness regarding the use of fertilizers and their positive impact on crops is accelerating the product demand. Furthermore, a limited arable area in the region and less nutrient content in the soil due to the high use of pesticides and other chemicals are expected to augment product adoption.

Saudi Arabia Ammonia Market

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Saudi Arabia ammonia market exceeded USD 2.8 billion in 2021 and is anticipated to grow at over 5.5% CAGR from 2022 to 2028. The demand for fertilizers is led by the need for high crop production from limited arable land, which will boost ammonia production, thus propelling the business landscape.

Further, ammonia market growth in the country is anticipated to the shortage of water, and less rainfall in that boosted demand for fertilizers to increase agricultural crop production. Saudi Arabia is one of the prominent exporters of ammonia and its derivatives. The country exports a significant share of its production to Brazil and Asian countries, providing it a strong position in the global ammonia exporter’s list.

Middle East Ammonia Market Share

Middle East Ammonia market share is fragmented owing to the presence of large number of regional manufacturers along with considerable presence of multinational players. Some of the key players in the market include

  • Yara International ASA
  • Ma’aden
  • Qatar Fertiliser Company
  • Hemmat Petrochemical Company
  • Gulf Petrochemical Industries Company
  • Pardis Petrochemical Company
  • OCI N.V.
  • Istanbul Fertilizer Industry Inc. Co. (IGSAS)
  • Petrochemical Industries Company

The key players in the market are mainly focusing on new product launches, acquisitions, and expansion in developing and developed economies to capture a good market share.

In September 2021, Enova provided Yara International ASA around USD 30 Million for the initiative of producing green ammonia. With this Yara officially takes the first step toward full decarbonization of the ammonia plant at Herøya in Porsgrunn.

In February 2022, Ma’aden that has completed the construction and pre-commissioning activities of the third ammonia plant, part of the phosphate 3 projects to enhance its market share.

The Middle East Ammonia market research report includes in-depth coverage of the industry with estimates & forecasts in terms of volume in Kilo Tons and revenue in USD Million from 2017 to 2028 for the following segments:

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By Type

  • Anhyrdous Ammonia
  • Aqueous Ammonia

By Application

  • Fertilizers
  • Refrigeration
  • Pharmaceuticals
  • Chemicals
  • Water purification
  • Others

The above information has been provided on a regional and country basis for the following:

  • Middle East
    • Saudi Arabia
    • Rest of Middle East

Authors: Kunal Ahuja, Tushar Malkani

Frequently Asked Questions (FAQ) :

Middle East ammonia market value surpassed USD 6.5 billion in 2021 and is set to expand at a CAGR of 3.5% between 2022 and 2028 owing to the rising product usage as a refrigerant.

Middle East ammonia market size from anhydrous ammonia type is estimated to exceed USD 5.5 billion until 2028 considering the surging product adoption on account of cleaning and medicinal properties.

Saudi Arabia ammonia market revenue is poised to grow at a CAGR of 5.5% from 2022 to 2028 driven by the escalating need for high crop production from limited arable land.

Prominent players in the Middle East ammonia industry comprise SABIC, OCI N.V., Qatar Fertiliser Company, Petrochemical Industries Company, Hemmat Petrochemical Company, Yara International ASA, and others.

Middle East Ammonia Market Scope

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 10
  • Tables & Figures: 77
  • Countries covered: 1
  • Pages: 114
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