The Middle East’s strategic role in global fertilizer supply – 2025 outlook

MIDDLE EAST – The Middle East, long a major player in global energy, now stands at the heart of fertilizer supply chains, new report outlines.

In 2025, countries including Iran, Saudi Arabia, Qatar, Oman, and the UAE are shaping fertilizer production, pricing, and trade routes in ways that directly affect agriculture across Asia, Africa, and Europe.

“The abundance of natural gas and the region’s location make the Middle East unmatched in fertilizer production,” Green Gubre Group noted in its latest market outlook.

“With growing investments in technology and sustainability, producers are preparing to meet both demand growth and regulatory changes.”

The region hosts some of the largest fertilizer complexes in the world. Producers such as SABIC Agri-Nutrients, QAFCO, OMIFCO, and Fertiglobe supply urea, ammonia, sulfur, and phosphates at scale.

Iran alone continues to ship large volumes of urea and ammonia through Bandar Abbas, while Saudi Arabia and the UAE invest heavily in expanding both capacity and port infrastructure.

Africa, India, and Southeast Asia remain the biggest buyers. West African importers rely on steady shipments from Iran, Oman, and the UAE, while India secures large annual contracts through government tenders.

Indonesia, Vietnam, and the Philippines also source much of their urea from Persian Gulf producers. Europe, meanwhile, seeks carbon-compliant fertilizers from Saudi Arabia and the UAE as it adjusts to stricter trade rules.

“The Middle East has become not only a producer but also a re-export hub,” the Green Gubre report stated. “Ports and blending facilities now play a central role in optimizing supply chains and pricing.”

Shifts toward green and compliant fertilizers

Producers are adapting to regulatory and climate-related demands. Saudi Arabia and the UAE are piloting green ammonia projects powered by renewable energy. Iran is testing efficiency upgrades to reduce carbon output.

At the same time, exporters in Oman and the UAE are registering their products under EU systems to ensure continued market access.

These moves are designed to secure long-term contracts and protect the region’s position as a reliable supplier. Infrastructure upgrades at Dammam, Sohar, and Bandar Abbas ports further reinforce this role.

A separate July 2025 analysis by Green Gubre Group showed sharp swings in global fertilizer pricing. Indian tenders lifted urea FOB Persian Gulf prices to as high as 376 USD per ton mid-month before easing toward the end of July.

Freight rates also surged due to port congestion, with shipments to Southeast Asia reaching 53 USD per ton at their peak.

“Importers rushed to restock ahead of demand cycles, fearing freight tightness and energy-linked cost increases,” the report explained. “This reinforced the Persian Gulf’s role as a global price setter.”

Looking ahead, analysts expect urea prices to soften in early August as supply balances with demand. However, Southeast Asia and Mediterranean buyers are forecast to increase procurement from September onward.

Despite market volatility, the Middle East’s fertilizer producers remain resilient. Their combination of resource strength, investment in infrastructure, and strategic contracts will ensure the region stays an anchor of global supply in 2025 and beyond.

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