Business & Money | Thursday 3 September, 2015 7:38 am |

 With sales revenues estimated at US$2.7 billion, earnings from Saudi Arabia’s fertilizer industry prove that the Kingdom is well on its way to diversifying its economy, according to the Gulf Petrochemicals and Chemicals Association (GPCA). 

“Despite the cyclical nature of commodity products, Saudi Arabia’s fertilizer sector has nearly doubled in the last decade, possessing the largest production capability in the Arabian Gulf,” said Dr. Abdulwahab Al- Sadoun, Secretary General, GPCA. “The sector’s consistent capacity growth, steady sales and rising employment make valuable contributions to the Saudi economy, and also demonstrate that this industry can be a key facet of the country’s long term diversification strategies.” 

With 42% of capacity, Saudi Arabia accounts for the largest share of fertilizer production in the GCC, according to the GPCA’s Fertilizers Indicators report. Saudi producers manufactured 17.2 million tons of fertilizers in 2014, an 87% increase from 2004. 

Meanwhile, fertilizer capacity in the Arabian Gulf grew to 40.8 million tons in 2014, a 3.8% increase from the previous year, earning revenues of US$6.5 billion, according to the report. 

“And with the launch of Safco 5 this year, notable for possessing one of the world’s largest carbon capture units, and Maaden’s Waad Al Shamal phosphates facility in 2016, Saudi fertilizers will continue to see much dynamism in the near future,” continued Dr. Al- Sadoun. 

Looking ahead, the GCC’s fertilizer manufacturers can look into diversifying their product portfolio to include specialty fertilizers, advises the GPCA. To date, only 396,000 tons of speciality fertilizers are currently produced in the GCC. 

“Specialty fertilizers have unique qualities that define them against urea or diammonium phosphate fertilizers and have characteristics that yield a higher return in the global marketplace and therefore result in greater returns for the producer.” 

The topic of innovation will be a key focus at the upcoming GPCA Fertilizer Convention. Held of the theme of “Innovating for growth: Ensuring an efficient, sustainable future”, the conference will shed light on how the GCC’s fertilizer industry can contribute to global food security while embracing an environmentally sustainable future. 

The Fertilizer Indicators report will be released at the GPCA Fertilizer Convention. Now in its 6th edition, the conference will be held in Dubai from September 14- 16.