GCC: Urea Market 2024

Urea Market Size in GCC

In 2022, after two years of decline, there was significant growth in the GCC urea market, when its value increased by 316% to $X. In general, consumption recorded strong growth. As a result, consumption attained the peak level and is likely to continue growth in the immediate term.

Urea Production in GCC

In value terms, urea production contracted to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.1% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2021 with an increase of 35%. As a result, production attained the peak level of $X, and then contracted in the following year.

Urea Exports

Exports in GCC

In 2022, shipments abroad of urea decreased by -61.1% to X tons for the first time since 2018, thus ending a three-year rising trend. Overall, exports showed a deep contraction. The pace of growth was the most pronounced in 2013 with an increase of 21%. Over the period under review, the exports hit record highs at X tons in 2021, and then shrank remarkably in the following year.

In value terms, urea exports fell notably to $X in 2022. In general, exports continue to indicate a abrupt decline. The most prominent rate of growth was recorded in 2021 when exports increased by 66% against the previous year. As a result, the exports reached the peak of $X, and then dropped rapidly in the following year.

Exports by Country

In 2022, Oman (X tons) and the United Arab Emirates (X tons) represented the largest exporters of urea in GCC, together generating 83% of total exports. It was distantly followed by Bahrain (X tons), comprising a 16% share of total exports. Kuwait (X tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for the United Arab Emirates (with a CAGR of +11.0%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Oman ($X), the United Arab Emirates ($X) and Bahrain ($X) were the countries with the highest levels of exports in 2022, together comprising 98% of total exports.

In terms of the main exporting countries, the United Arab Emirates, with a CAGR of +7.5%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The export price in GCC stood at $X per ton in 2022, shrinking by -10.4% against the previous year. Overall, the export price saw a mild setback. The pace of growth appeared the most rapid in 2021 an increase of 54%. The level of export peaked at $X per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

Average prices varied somewhat amongst the major exporting countries. In 2022, major exporting countries recorded the following prices: in Kuwait ($X per ton) and Bahrain ($X per ton), while Oman ($X per ton) and the United Arab Emirates ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Oman (+0.0%), while the other leaders experienced a decline in the export price figures.

Urea Imports

Imports in GCC

In 2022, urea imports in GCC dropped to X tons, which is down by -10.2% compared with 2021. Over the period under review, imports continue to indicate a abrupt slump. The growth pace was the most rapid in 2020 when imports increased by 210%. As a result, imports attained the peak of X tons. From 2021 to 2022, the growth of imports remained at a somewhat lower figure.

In value terms, urea imports dropped remarkably to $X in 2022. Overall, imports recorded a pronounced decrease. The growth pace was the most rapid in 2020 with an increase of 173% against the previous year. As a result, imports reached the peak of $X. From 2021 to 2022, the growth of imports remained at a lower figure.

Imports by Country

In 2022, the United Arab Emirates (X tons) represented the key importer of urea, mixing up 60% of total imports. Oman (X tons) took a 29% share (based on physical terms) of total imports, which put it in second place, followed by Kuwait (7.6%). The following importers - Bahrain (X tons) and Saudi Arabia (X tons) - each reached a 3.2% share of total imports.

Imports into the United Arab Emirates increased at an average annual rate of +3.3% from 2012 to 2022. At the same time, Kuwait (+10.3%) displayed positive paces of growth. Moreover, Kuwait emerged as the fastest-growing importer imported in GCC, with a CAGR of +10.3% from 2012-2022. By contrast, Oman (-9.5%), Saudi Arabia (-18.6%) and Bahrain (-27.6%) illustrated a downward trend over the same period. From 2012 to 2022, the share of the United Arab Emirates and Kuwait increased by +36 and +6 percentage points, respectively.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported urea in GCC, comprising 70% of total imports. The second position in the ranking was taken by Oman ($X), with an 18% share of total imports. It was followed by Kuwait, with a 7.4% share.

From 2012 to 2022, the average annual rate of growth in terms of value in the United Arab Emirates amounted to +10.3%. The remaining importing countries recorded the following average annual rates of imports growth: Oman (-12.6% per year) and Kuwait (+8.5% per year).

Import Prices by Country

In 2022, the import price in GCC amounted to $X per ton, with a decrease of -8.2% against the previous year. Import price indicated slight growth from 2012 to 2022: its price increased at an average annual rate of +1.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, urea import price increased by +85.8% against 2017 indices. The most prominent rate of growth was recorded in 2021 an increase of 59% against the previous year. As a result, import price reached the peak level of $X per ton, and then declined in the following year.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was the United Arab Emirates ($X per ton), while Oman ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+6.8%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform