Middle East: Urea Market 2024

Urea Market Size in the Middle East

In 2022, the Middle Eastern urea market increased by 65% to $X, rising for the sixth year in a row after two years of decline. Over the period under review, consumption posted a prominent increase. As a result, consumption reached the peak level and is likely to continue growth in the immediate term.

Urea Production in the Middle East

In value terms, urea production declined rapidly to $X in 2022 estimated in export price. The total production indicated temperate growth from 2012 to 2022: its value increased at an average annual rate of +2.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +56.6% against 2016 indices. The growth pace was the most rapid in 2021 when the production volume increased by 36%. As a result, production attained the peak level of $X, and then declined remarkably in the following year.

Urea Exports

Exports in the Middle East

In 2022, exports of urea in the Middle East contracted sharply to X tons, which is down by -59% on 2021. In general, exports recorded a deep contraction. The growth pace was the most rapid in 2015 with an increase of 25% against the previous year. The volume of export peaked at X tons in 2017; however, from 2018 to 2022, the exports failed to regain momentum.

In value terms, urea exports declined remarkably to $X in 2022. Overall, exports saw a deep slump. The most prominent rate of growth was recorded in 2021 when exports increased by 59%. As a result, the exports attained the peak of $X, and then shrank rapidly in the following year.

Exports by Country

Oman (X tons) and the United Arab Emirates (X tons) were the key exporters of urea in 2022, amounting to approx. 46% and 31% of total exports, respectively. Bahrain (X tons) held the next position in the ranking, distantly followed by Iran (X tons). All these countries together took near 21% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the leading exporting countries, was attained by the United Arab Emirates (with a CAGR of +11.0%), while the other leaders experienced more modest paces of growth.

In value terms, the largest urea supplying countries in the Middle East were Oman ($X), the United Arab Emirates ($X) and Bahrain ($X), together accounting for 87% of total exports.

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

Export Prices by Country

In 2022, the export price in the Middle East amounted to $X per ton, declining by -6.3% against the previous year. Over the period under review, the export price saw a slight setback. The pace of growth appeared the most rapid in 2021 an increase of 53%. The level of export peaked at $X per ton in 2012; however, from 2013 to 2022, the export prices failed to regain momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Iran ($X per ton), while Oman ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Iran (+3.5%), while the other leaders experienced mixed trends in the export price figures.

Urea Imports

Imports in the Middle East

In 2022, overseas purchases of urea were finally on the rise to reach X tons after two years of decline. In general, imports posted a prominent increase. The volume of import peaked at X tons in 2017; however, from 2018 to 2022, imports failed to regain momentum.

In value terms, urea imports soared to $X in 2022. Over the period under review, imports recorded strong growth. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports by Country

Turkey prevails in imports structure, recording X tons, which was near 86% of total imports in 2022. Israel (X tons) took a 7.5% share (based on physical terms) of total imports, which put it in second place, followed by Iran (4.6%).

Imports into Turkey increased at an average annual rate of +7.9% from 2012 to 2022. At the same time, Iran (+83.9%) and Israel (+12.2%) displayed positive paces of growth. Moreover, Iran emerged as the fastest-growing importer imported in the Middle East, with a CAGR of +83.9% from 2012-2022. Iran (+4.6 p.p.) and Israel (+2.3 p.p.) significantly strengthened its position in terms of the total imports, while Turkey saw its share reduced by -2.9% from 2012 to 2022, respectively.

In value terms, Turkey ($X) constitutes the largest market for imported urea in the Middle East, comprising 91% of total imports. The second position in the ranking was held by Israel ($X), with a 5% share of total imports.

In Turkey, urea imports increased at an average annual rate of +12.5% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Israel (+11.0% per year) and Iran (+71.7% per year).

Import Prices by Country

The import price in the Middle East stood at $X per ton in 2022, rising by 56% against the previous year. Overall, the import price continues to indicate tangible growth. The most prominent rate of growth was recorded in 2021 when the import price increased by 62%. Over the period under review, import prices reached the peak figure in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Turkey ($X per ton), while Iran ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Turkey (+4.3%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform

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