Page 40 - AA 2026

Saudi Arabia

Saudi Arabia Fruits and Vegetables Market Analysis

SAUDI ARABIA FERTILIZER irrigation systems in Saudi Arabia
MARKET SIZE & SHARE ANALYSIS increases the demand for specialized
Saudi Arabia fertilizer market liquid fertilizer formulations designed
size in 2026 is estimated at USD for drip and micro-spray applications.
0.86 billion, growing from 2025 Studies show that combining
value of USD 0.82 billion with 2031 precision irrigation with fertigation
projections showing USD 1.1 billion, improves water use efficiency by
growing at 5.03% CAGR over 2026- up to 46% while increasing crop
2031. This growth aligns with the blue ammonia production, providing yields by approximately 19% in
Kingdom’s strategy to utilize its Saudi Arabia with a competitive the country’s arid conditions. The
natural gas feedstock advantages advantage over traditional fertilizer Ministry of Environment, Water,
while implementing Vision 2030’s exporters. This transition to low- and Agriculture has allocated SAR
food security and economic carbon production methods supports 100 million (USD 26.7 million) to
diversification goals. The market global emissions reduction goals sustainable agriculture initiatives,
development is driven by domestic while enabling the Kingdom to supporting the implementation of
production quotas, increased process its natural gas reserves into advanced irrigation technologies in
adoption of precision irrigation, higher-value products. commercial farming operations. This
and the country’s development as a Mandatory Domestic-Production transition benefits liquid fertilizer
global blue ammonia export center Quotas Under Vision 2030 Food- suppliers who provide nutrient
through carbon capture initiatives. Security Targets solutions compatible with automated
Saudi Aramco achieved a significant Saudi Arabia’s Vision 2030 delivery systems, presenting market
milestone by completing the world’s framework establishes minimum opportunities for companies with
first certified bulk shipment of low- precision agriculture capabilities.
carbon ammonia to Japan in 2024, domestic fertilizer production The movement toward water-efficient
using carbon capture and storage requirements to support food security farming practices aligns with the
technologies. The combination of this goals. The Saudi Grains Organization Kingdom’s National Water Strategy
technological progress, government has set procurement targets of 1.5 2030 for managing limited freshwater
support for desert-soil bio-enhanced million metric tons of domestically resources.
fertilizers research, and widespread produced wheat annually. These Gulf Cooperation Council (GCC)
implementation of precision irrigation requirements ensure fertilizer Natural-Gas Price Advantage
systems indicates continued market manufacturers maintain production Versus Global Peers
growth, despite existing regulatory capacity for strategic crops, creating Saudi Arabia maintains a
and competitive challenges. consistent demand for nitrogen and competitive advantage in ammonia
Surge in Low-Carbon Blue- phosphate products. The country has and urea production through access
Ammonia Export Incentives achieved self-sufficiency in dates, to subsidized natural gas feedstock,
dairy, and table eggs production,
Saudi Arabia’s blue ammonia with surplus available for export. with domestic prices significantly
export program uses carbon capture The government has allocated USD lower than international market
and storage technologies to produce 400 million in 2023 to support small rates. The country produced 4.0
low-carbon fertilizers for global farming operations and agricultural million metric tons of ammonia in
markets. Saudi Aramco exported 40 cooperatives, increasing fertilizer 2024, sustaining production volumes
metric tons of blue ammonia to Japan usage in previously underserved while other global producers
in 2024, validating the commercial segments. The domestic production experienced higher production costs
feasibility of these exports. The requirements help protect local due to elevated gas prices. Saudi
Kingdom aims to produce 11 million fertilizer demand from global price Aramco’s expansion of the Fadhili
metric tons of blue ammonia by 2030. fluctuations while maintaining Gas Processing Plant will increase
Saudi fertilizer producers can obtain food security during supply chain gas processing capacity from 2.5
15-20% price premiums compared disruptions. to 3.8 billion cubic feet per day by
to conventional ammonia while 2027, ensuring a stable feedstock
meeting carbon emission standards Rapid Pivot to Precision supply for fertilizer production. The
of importing countries. Government Irrigation Boosting Water-Efficient cost advantage has become more
incentives for carbon capture projects Fertilizer Blends significant as international natural gas
improve the financial viability of The adoption of IoT-enabled smart prices remain high due to geopolitical
38 Arab Agriculture 2026