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The agri-nutrients industry in the Arabian Gulf and globally is entering a new phase characterized by lower market growth, economic slowdown and increased consolidation, and in order to enhance its competitive advantage the industry must work towards creating value through innovation and developing improved and sustainable agri-nutrient products, agreed speakers at the 10th Fertilizer Convention held by the Gulf Petrochemicals and Chemicals Association (GPCA) in Muscat, Oman today.
Fertilizer demand is projected to grow at CAGR 1.4% between now and 2023, falling behind global GDP and other industries’ growth. Industry consolidation is at an all-time high led by a rise in mega-mergers and acquisitions in the last 10 years, with the top ten fertilizer producers now controlling 45% of the market share. Speakers at the convention stressed that this highly competitive and consolidated industry environment presents new challenges and opportunities for agri-nutrient producers in the GCC who must pursue value creation through innovation and strategic integration if they are to remain successful in these increasingly uncertain times.
H.E. Dr. Hamed Said Al Oufi, Minister of Agriculture and Fisheries Wealth, Oman inaugurated the exhibition and attended the convention, which was held under his patronage, while the opening remarks by Dr. Abdulrahman Jawahery, President, GPIC and Vice Chairman, GPCA followed by a welcome address by Eng. Isam bin Saud Al Zadjali, CEO, Oman Oil Company, and Chairman, Oman India Fertiliser Company (OMIFCO).
The keynote address on day one was presented by Samir Al-Abdrabbuh, EVP – Agri-Nutrients, SABIC, and Vice Chairman, Fertilizers Committee, GPCA, while John Baffes, Senior Economist, World Bank (Development Prospects Group), will deliver the keynote address on the following day 26 September.
In his welcome address, Eng. Al Zadjali highlighted the need for strategic partnership as well as the exchange of experiences among producers in the GCC in order to overcome the challenges facing the agri-nutrients industry, which is so central to ensuring global food security. As the global population is expected to reach 9.6 billion by 2050, the role of agri-nutrients producers in addressing higher demand for food will be particularly important, as will improving crops and water management through balanced and effective fertilizer use, he added.
Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, commented: “The agri-nutrients industry in the GCC must continue to enhance its competitive position and remain resilient in the face of future challenges and disruptions, which can only be achieved through building home-grown innovation capabilities, investing in strategic integration, utilizing cutting-edge technologies, and training and developing young indigenous talent – our region’s greatest asset.”
“For over a decade, the GPCA Fertilizer Convention has served as an essential platform for the exchange of knowledge, best practice and networking among global and regional leaders from government, industry and academia to address some of the most pressing issues facing the industry and provide long lasting solutions to the challenges that continue to emerge in this ever more dynamic and complex industry environment,” he added.
The 10th GPCA Fertilizer Convention will conclude tomorrow, 26 September, covering a wide variety of topics including food security in the Arabian Gulf, technology trends and disruptions, strategies for growth, market trends and producing enhanced quality agri-nutrients. In line with GPCA’s commitment to building local human capital in the region, the convention has hosted an exclusive student seminar facilitated by senior industry experts as well as a virtual visit to OMIFCO’s facilities in Oman as part of the 12th edition of GPCA’s Leaders of Tomorrow program, powered by SABIC.
For more information about the event, visit www.gpcafertilizers.com.
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