GPCA sees strong growth for Saudi ferts sector on diversification

LONDON (ICIS)–The Saudi fertilizer industry is poised for strong growth and diversification on a platform of significant investment such as the $7.5bn Waad Al-Shamal phosphate project by Ma’aden, the head of the Gulf Petrochemicals & Chemicals Association (GPCA) stated on Tuesday.

According to Abdulwahab Al-Sadoun, secretary-general of the GPCA, fertilizer capacity in the Arabian Gulf reached 42.7m tonnes in 2013, up 4% year-on-year, and more than double the global fertilizer industry growth rate of 1.7%.

“Fertilizer production from the Kingdom accounts for 40% of total capacity in the Gulf Cooperation Council (GCC) region,” said Al-Sadoun. “Saudi Arabia has built this industry from the ground up over the last four decades, transforming it into a multi-billion dollar sector that not only earns valuable revenues, but also employs thousands of people.”

Highlighting a forthcoming report by the GPCA called 2013 GCC Fertilizer Industry Indicators, the executive said while nitrogen fertilizers like ammonia and urea dominate production capacity, new industry infrastructure and investment is focused on product diversification, a factor he feels will give the country the edge over its competitors.

“The emergence of locally produced DAP [diammonium phosphate] fertilizers represents an opportunity to enter new markets in Asia for Saudi fertilizer producers, which have a high demand for this nutrient,” continued Al-Sadoun.

He added the report will be released at the GPCA’s Fertilizer Convention from September 16-18 in Dubai, United Arab Emirates.