Middle East Ammonia Market Analysis

Middle East Ammonia Market Analysis

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.
 

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 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.