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UAE

Emirates UAE from 2023 to 2027 Summary

Explore the growth and potential of the UAE fertilizer market from 2023 to 2027. Discover market trends, segmentation, and key players.

Market Overview.

Growing Demand

The UAE fertilizer market is undergoing significant growth and changes, driven by factors like government initiatives for agricultural productivity, technological advancements, and increasing food demand due to population growth. The emphasis on high-quality fertilizers, nano-fertilizers, and precision farming are notable trends.

Economic Opportunities

The market presents vast economic opportunities for investors, with favorable government policies and increasing agricultural investments.

Strategic Location

The UAE's strategic geographical location offers a gateway for fertilizer trade between Asia, Africa, and Europe.

Market Segmentation.

Nitrogenous Fertilizers

Nitrogenous Fertilizers, a key segment in the UAE’s fertilizer market, are compounds rich in nitrogen, and they are primarily used to boost crop yields. They include types such as urea, ammonium nitrate, and ammonium sulfate. With the UAE government’s intensified focus on enhancing agricultural productivity, the use of these fertilizers has seen a substantial increase. In the context of the UAE, urea has been the most widely used type of nitrogenous fertilizer, mainly due to its high nitrogen content and ease of storage and transport. In 2022, urea accounted for approximately 60% of the nitrogenous fertilizers market share. This dominance is expected to continue, given the steady demand from the agriculture sector. Ammonium nitrate, another key nitrogenous fertilizer, has also seen robust demand. However, due to safety concerns related to storage and handling, its growth rate has been slightly lower than urea.

Phosphatic Fertilizers

Phosphatic Fertilizers are a category of fertilizers that are rich in phosphorus, a nutrient essential for plant growth and development. They include products such as Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), and Single Super Phosphate (SSP). In the United Arab Emirates, phosphatic fertilizers play a crucial role in the fertilizer market due to the phosphorus deficient nature of the soil. Given the arid climate and sandy soil of the region, the demand for these fertilizers is high to ensure the healthy growth of crops. The adoption of advanced farming techniques has also been a significant factor increasing the demand for phosphatic fertilizers. Hydroponic farming, which is gaining popularity in the UAE, heavily relies on these fertilizers due to their watersoluble nature. Moreover, the UAE government’s sustainability initiatives have further propelled the use of phosphatic fertilizers. To reduce the environmental impact of farming, there has been an increased emphasis on the balanced use of fertilizers. This has resulted in a considerable spike in the use of phosphatic fertilizers, which are recognized for their ability to improve soil fertility without causing much harm to the environment.

Potassic Fertilizers

Potassic Fertilizers, which form a key segment in the UAE’s fertilizer market, are potassium-based compounds typically utilized to enhance the overall growth, strength, and water utilization of a variety of crops. These types of fertilizers are indispensable for crops such as bananas, potatoes, and tomatoes, which require high levels of potassium. The demand for potassic fertilizers has seen an upward trajectory in the UAE, largely due to the increasing cultivation of potassium-intensive crops. This trend is further fueled by the growing acknowledgment among farmers about the crucial role of potassium in plant growth and the consequent rise in quality and quantity of crop yield. The potassic fertilizers segment is characterized by the dominance of two primary product types: Muriate of Potash (MOP) and Sulfate of Potash (SOP). MOP, also known as potassium chloride, holds a substantial share in the market, owing to its wide availability and lower cost. SOP, on the other hand, although more expensive, is preferred for certain crops due to its lower chloride content. In terms of application methods, potassic fertilizers are commonly applied directly to the soil or used as a component in compound fertilizers. The choice of application method largely depends on the specific requirements of the crop and the soil conditions. The advancements in farming practices and technology have also led to the emergence of more efficient and precise fertilizer application methods, thereby contributing to the growth of this market segment.

Market Trends

Innovative Formulations.

A growing trend in the UAE fertilizer market is the shift towards organic and biofertilizers. Consumers are becoming more aware of the harmful effects of synthetic fertilizers on the environment and food quality, leading to increased demand for organic alternatives. This is encouraging manufacturers to invest in research and development of organic fertilizers, which are not only eco-friendly but also enhance soil health and fertility. Technological advancements are also influencing the market trends. Precision agriculture technologies, such as drones and GPS-based soil sampling, are enabling farmers to apply fertilizers more efficiently, reducing wastage and environmental impact. Furthermore, there is a growing trend of vertical farming in the UAE due to limited arable land and harsh climatic conditions. This method of farming requires specialized fertilizers that can provide nutrients in a controlled environment. Manufacturers are thus developing fertilizers specifically designed for vertical farming, contributing to industry innovation. Additionally, the government’s focus on self-sustainability in food production is driving the trend of crop- specific fertilizers. These fertilizers are tailored to the nutritional needs of specific crops, thereby maximizing yield and reducing nutrient runoff. This has led to an increase in product variation within the market, providing more options for farmers and bolstering market growth.

Competitive Landscape

Emirates National Factory for Plastic Industries LLC is a globally recognized leader in the plastic and packaging industry. Established in 1995, this UAE-based company has developed a strong reputation for its commitment to quality, innovation, and sustainability. ENPI’s diverse portfolio includes a range of products catering to various industries, including the agricultural sector. As part of their commitment to the agricultural industry, ENPI provides a range of plastic products designed to support the effective and efficient use of fertilizers.
Gulf Petrochemical Industries Co. GPIC’s primary focus is the production of ammonia, methanol, and urea, leveraging its state-of-the-art facilities and robust supply chain network. Its urea production facilities, with an annual capacity of 1.7 million tonnes, stand testament to its significant role in meeting the growing demand in the UAE’s agricultural sector.
Qatar Fertilizer Company (QAFCO) is a leading player in the UAE fertilizer market, with a strong reputation for its high-quality products and customer-centric approach. QAFCO its one of the largest producers of urea and ammonia in the world, with a production capacity of over 3 million tons per annum. QAFCO’s product portfolio includes a variety of nitrogen-based fertilizers such as urea, ammonia, and ammonium nitrate, which are essential for enhancing agricultural productivity and crop yields. The company also offers a range of specialty fertilizers such as calcium ammonium nitrate (CAN) and ammonium sulfate, which are specifically designed to meet the unique needs of different crops and soil types.
FERTIL is a leading player in the UAE fertilizer market, with a diverse product portfolio that caters to the needs of the agricultural sector. The company’s core offerings include nitrogenous and potassic fertilizers, which are essential for crop growth and productivity. FERTIL has established a strong reputation for its highquality products, advanced technologies, and customer-centric approach, which has enabled it to maintain a competitive edge in the market.
Abu Dhabi Fertilizer Industries Co. WLL (ADFERT) is a key player in the UAE fertilizer market, with a strong reputation for its high-quality products and exceptional customer service. The company’s product portfolio includes a range of nitrogenous, potassic, and phosphatic fertilizers, catering to the diverse needs of the agricultural sector. ADFERT has a state-of-the-art production facility in Abu Dhabi and a robust supply chain network, enabling it to efficiently serve its customers across the UAE.

Market Opportunities and Future Trends.

The fertilizer market in the United Arab Emirates (UAE) is expected to witness substantial growth in the coming years, driven by several market opportunities and future trends. One of the key drivers of growth is the government’s increasing focus on enhancing agricultural productivity through various initiatives and investments. The UAE government has been actively promoting sustainable agriculture practices and investing in research and development to improve crop yields and quality, which is expected to drive demand for fertilizers in the country. Another trend shaping the future of the UAE fertilizer market is the growing popularity of organic and bio-based fertilizers. With the increasing awareness about the harmful effects of chemical fertilizers on the environment and human health, consumers are looking for sustainable and eco-friendly options. This has led to the emergence of organic and bio-based fertilizers in the market, which are expected to gain significant traction in the coming years. Furthermore, technological advancements and innovations in the fertilizer industry are expected to create new opportunities for market growth. For instance, the use of precision farming techniques, such as crop sensors and drones, can help farmers optimize fertilizer application and reduce waste. Additionally, the development of new fertilizer formulations and delivery mechanisms can enhance the efficiency and effectiveness of fertilizers, further driving demand in the market. Overall, the fertilizer market in the UAE is poised for significant growth in the coming years, with the government’s initiatives, the popularity of organic and biobased fertilizers, and technological advancements driving market opportunities and future trends.