Middle East Ammonia Market Size

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.

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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.