Oman Fertilizer Market to Reach $357 Million by 2033

According to Renub Research Latest Report Oman Fertilizer Market is projected to grow from USD 243.11 million in 2024 to USD 357.57 million by 2033, registering a CAGR of 4.38% during the forecast period of 2025–2033. Market expansion is fueled by government support for agriculture, rising demand for high-yield crops, technological innovations in fertilizers, and the adoption of green and sustainable alternatives.

Fertilizers play a pivotal role in enhancing soil fertility and crop productivity, making them essential for Oman’s agriculture, horticulture, and controlled-environment farming. As the nation invests in food security and sustainable farming, the fertilizer industry is poised for steady growth.

Oman Fertilizer Market Overview

Fertilizers, whether chemical or organic, supply plants with essential nutrients such as nitrogen (N), phosphorus (P), and potassium (K) to enhance growth and yield. They are classified as synthetic (chemical) fertilizers or organic fertilizers derived from compost, manure, or plant residues.

In Oman, fertilizers are crucial for arid-region agriculture, improving soil productivity while optimizing water usage. Specialized fertilizers, including desert-friendly and slow-release variants, support crop development in harsh climatic conditions. Key agricultural activities like date palm cultivation, horticulture, greenhouse farming, and fodder production rely heavily on fertilizers to achieve sustainable yields.

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Growth Drivers in the Oman Fertilizer Market

Government Support for Agricultural Development

The Omani government actively promotes sustainable agricultural practices to enhance food security and reduce dependency on imports. Fertilizer subsidies, irrigation system investments, and greenhouse farming support encourage farmers to increase fertilizer application.

Under Oman Vision 2040, the government is investing in farm cities to boost food production and economic diversification. In February 2025, the Ministry of Housing and Urban Planning (MHUP) announced plans to build three farm cities in Saham, Dhahirah, and Najd, with investments totaling $7.8 billion. Each city spans approximately 50 square kilometers, reinforcing the demand for fertilizers to ensure optimal crop productivity.

Increasing Demand for High-Yield Crops and Sustainable Agriculture

Population growth and rising food demand are driving high-yield crop cultivation, which relies heavily on fertilizers to enhance soil fertility and productivity. Simultaneously, eco-friendly fertilizers, including bio-based and organic solutions, are gaining traction.

For instance, in January 2025, Oman launched its first eco-friendly marine fish farm at Al Musannah, utilizing Recirculating Aquaculture System (RAS) technology. This initiative highlights the trend toward sustainable, high-yield food production that indirectly supports fertilizer demand.

Greenhouse and Controlled Environment Agriculture Expansion

Oman’s desert climate and limited water availability have increased reliance on greenhouses and controlled-environment agriculture. Water-soluble and slow-release fertilizers are increasingly applied in hydroponic, vertical, and greenhouse farms to ensure efficient nutrient uptake.

In August 2024, Trufud Farm, Oman’s first vertical farming company, expanded operations to meet growing domestic demand for pesticide-free leafy greens and herbs, highlighting the correlation between modern agriculture techniques and fertilizer usage.

Challenges in the Oman Fertilizer Industry

Water Scarcity and Soil Degradation

Oman faces severe water shortages, limiting conventional farming. Excessive chemical fertilizer use can lead to soil contamination, salinization, and water pollution, threatening long-term productivity. Sustainable fertilizer use and efficient water management are critical challenges for the industry.

Dependence on Imported Fertilizers

Oman relies heavily on imported fertilizers, exposing the market to price volatility, supply chain disruptions, and geopolitical risks. Limited local production restricts the availability of customized fertilizers suited to Oman’s soils and climate, adding cost and operational challenges for farmers.

Segment Insights

Nitrogen Fertilizer Market

Nitrogen fertilizers are essential for plant metabolism, growth, and yield. Common forms in Oman include urea, ammonium nitrate, and ammonium sulfate, particularly used in horticulture, greenhouse farming, and fodder crops. Advanced application methods, such as controlled-release and water-efficient fertilizers, are gaining popularity.

October 2023: Nakheel Oman Development Company expanded its organic fertilizer plant in Salalah to a capacity of 100,000 tonnes per year, producing 25,000 tonnes in 2023, demonstrating growth in sustainable nitrogen fertilizer production.

Ammonium Nitrate Fertilizer Market

Ammonium nitrate is a high-performance nitrogen fertilizer used for fruit, vegetable, and cereal cultivation. Its effectiveness in promoting root development and chlorophyll synthesis makes it ideal for intensive farming. However, strict handling regulations due to its explosive nature limit widespread use.

Urea Fertilizer Market

Urea is the most popular nitrogen fertilizer in Oman, favored for high nitrogen content and cost-effectiveness. It is widely applied in grain crops, vegetables, and fruit trees. However, high temperatures and water scarcity can reduce its effectiveness due to nitrogen loss, prompting demand for slow-release urea and efficient application techniques.

Organic Fertilizer Market

Oman’s organic fertilizer segment is growing as farmers adopt eco-friendly, sustainable farming practices. Organic fertilizers improve soil health, microbial activity, and nutrient availability while reducing chemical residues. Government incentives encourage bio-fertilizers and organic soil conditioners, catering to consumer demand for chemical-free produce.

Dry Fertilizer Market

Dry fertilizers, including granules and powders, are popular for their long shelf life, affordability, and ease of application. Granular fertilizers are mainly used for field crops, while powdered fertilizers are preferred in controlled-environment agriculture. Water-soluble dry fertilizers are increasingly applied in drip irrigation and fertigation systems, addressing Oman’s arid climate challenges.

Agriculture and Crop-Specific Fertilizer Market

Agriculture Fertilizers: Support soil fertility and crop yields, especially in arid and semi-arid regions. Include chemical fertilizers (NPK, urea, ammonium sulfate) and organic/bio-fertilizers.

Vegetable Fertilizers: Nitrogen-based fertilizers enhance leafy growth, while phosphorus and potassium promote root and fruit development in crops like tomatoes, cucumbers, and peppers.

Rice Fertilizers: Despite limited rice cultivation, fertilizers enhance yields in small-scale or experimental farms. Slow-release nitrogen fertilizers and bio-fertilizers reduce environmental impact and improve soil quality.

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Oman Fertilizer Market Segmentation

Type:

Nitrogen Fertilizers

Phosphate Fertilizers

Potash Fertilizers

Nitrogen Fertilizers:

Ammonia (N), Ammonium Nitrate (N), Ammonium Phosphate (N), Ammonium Sulphate (N), Calcium Ammonium Nitrate (N), Potassium Nitrate (N), Urea (N), Urea Ammonium Nitrate (N), NK (N), NPK (N), NP (N), Others

Category: Organic, Inorganic

Form: Dry, Liquid

Application: Agriculture, Horticulture, Gardening, Others

Crop: Grassland, Vegetables, Fruits/Treenuts, Roots/Tubers, Sugar Crops, Fibre Crops, Other Oil Crops, Oil Palm, Soybeans, Other Cereals, Maize, Rice, Wheat, Others

Key Players

Yara International ASA

k+s ag

CF Industries Holdings

GrupaAzoty S.A

ICL Group

OCI NV

Sociedad Quimica y Minera de Chile SA

BASF SA

PhosAgro

The key players focus on product innovation, green fertilizer solutions, and expansion in high-demand regions, aligning with Oman’s sustainable agriculture objectives.

Market Outlook

Oman’s fertilizer market is expected to witness consistent growth through 2033, driven by:

Government-led agriculture initiatives promoting food security and sustainable practices.

Rising demand for high-yield and specialty crops, necessitating efficient fertilization.

Adoption of advanced and eco-friendly fertilizers, including bio-fertilizers and slow-release formulations.

Expansion of controlled-environment agriculture, hydroponics, and vertical farming.

Integration of precision farming techniques, optimizing fertilizer use and water efficiency.

As Oman continues to invest in sustainable agriculture, technological adoption, and green fertilizer initiatives, the fertilizer market will remain a cornerstone of the country’s food security and economic diversification strategy.

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