Oman Fertilizer Market Trends & Summary (2025–2033)
According to Renub Research Oman fertilizer market is undergoing a period of significant development, driven by rising agricultural activity, government support for sustainable farming, and the growing need to increase crop yields in an arid climate with limited arable land. As Oman seeks to enhance domestic food production and reduce reliance on imports, the demand for fertilizers—both organic and inorganic—continues to accelerate. Advanced technologies, green fertilizer alternatives, and climate-smart agriculture methods are also playing a transformative role in shaping the country’s fertilizer landscape through 2033.
Market Overview
Fertilizers are essential inputs for agriculture, providing plants with vital nutrients such as nitrogen (N), phosphorus (P), and potassium (K) needed for growth, soil fertility enhancement, and overall productivity. In Oman, where desert conditions, soil salinity, and chronic water scarcity limit natural soil fertility, fertilizers are indispensable for supporting crop development. The country uses a wide range of fertilizers—chemical, mineral, organic, and specialty variants—to maximize agricultural output in greenhouses, open fields, controlled-environment farms, and horticulture.
The overall fertilizer demand in Oman is rising in parallel with agricultural modernization efforts. The government is investing in agricultural cities, greenhouse expansion, and sustainable farming initiatives aligned with Oman Vision 2040. This renewed focus on food security has stimulated fertilizer consumption across crops such as vegetables, fruits, grasslands, roots and tubers, and specialized segments like date palms—one of Oman’s largest agricultural commodities.
At the same time, the market is witnessing a shift toward environmentally friendly fertilizers, including bio-fertilizers, compost-based products, slow-release nitrogen, and water-efficient nutrient blends. Technology adoption—such as controlled-environment agriculture, vertical farming, hydroponics, and fertigation systems—is further boosting fertilizer demand while encouraging precision use to minimize waste.
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Key Market Growth Drivers
1. Strong Government Support for Agricultural Development
Government support remains one of the strongest driving forces in Oman’s fertilizer market. Policymakers have prioritized agricultural self-sufficiency by introducing subsidies, modern irrigation technologies, and greenhouse incentives. These policies encourage farmers to implement enhanced fertilization programs to boost productivity and protect soil nutrients.
A milestone initiative is the construction of three major farm cities in Saham (North Batinah), Dhahirah, and Najd (Dhofar)—a combined investment of US$ 7.8 billion announced by the Ministry of Housing and Urban Planning (MHUP) in February 2025. Each agricultural city spans around 50 square kilometers and supports large-scale food production, including crops, livestock, and aquaculture. Fertilizer consumption is expected to rise sharply as these cities expand, adopting high-tech farming practices requiring specialized nutrient inputs.
2. Need for High-Yielding Crops and Sustainable Practices
Population growth, rising food demand, and the need to enhance domestic food production are pushing farmers to adopt fertilizers to improve soil fertility and crop yields. Fertilizers are essential to Oman’s food security strategy since natural soil nutrients are severely limited in desert environments.
Oman is also witnessing a strong push toward sustainable and eco-friendly fertilizers. Farmers and commercial growers are increasingly adopting bio-fertilizers, organic soil enhancers, and environmentally safe nutrient blends to improve soil health, reduce chemical dependency, and meet consumer demand for chemical-free produce.
Supporting this trend, Oman announced its first eco-friendly marine fish farm in January 2025, using RAS technology to produce Sea Bream. Although aquaculture is not a direct consumer of fertilizers, its sustainability focus reflects the country’s wider agricultural shift toward green technologies, influencing fertilizer selection and usage.
3. Expansion of Greenhouses and Controlled Environment Agriculture
Oman’s extreme heat, limited rainfall, and soil challenges have accelerated the adoption of controlled-environment agriculture—greenhouses, hydroponics, vertical farms, and climate-smart indoor farms. These systems rely heavily on specialized fertilizers such as water-soluble blends, micronutrient packages, chelated minerals, and slow-release formulations.
In August 2024, Oman’s first vertical farming operation—Trufud Farm—announced expansion plans to meet rising domestic demand for pesticide-free leafy greens and herbs. Vertical farming methods require precise fertilizer inputs delivered via fertigation, elevating demand for high-quality nutrients.
As hydroponic and vertical farming grow nationwide, the requirement for customized fertilizers will increase significantly over the forecast period.
Challenges Within the Oman Fertilizer Market
1. Water Shortages and Soil Degradation
Severe water scarcity is the major limiting factor for agriculture in Oman. Excess use of fertilizers in low-water environments can trigger issues such as:
- soil salinization
- nutrient leaching
- groundwater pollution
- long-term soil degradation
Addressing these challenges requires advanced fertilizer formulations, moisture-efficient application techniques, and strict nutrient management—often raising the cost for farmers.
2. Dependence on Imported Fertilizers
Oman imports the majority of its fertilizers, leaving the market exposed to:
- global price fluctuations
- geopolitical instability
- shipping disruptions
- limited availability of specialized fertilizers
Although the country has small-scale local production, such as organic fertilizer facilities, it lacks large chemical fertilizer manufacturing plants. This dependence poses long-term risks and inflates production costs for farmers, making locally grown food more expensive.
Detailed Segment Insights
Oman Nitrogen Fertilizer Market
Nitrogen remains the most important fertilizer category in Oman due to its role in promoting vegetative plant growth. Common nitrogen fertilizers include:
- Urea
- Ammonium nitrate
- Ammonium sulfate
- Calcium ammonium nitrate
- Compound nitrogen blends (NPK, NP, NK)
Nitrogen fertilizers are extensively used in vegetables, fodder crops, fruit orchards, and greenhouses. However, excessive nitrogen application risks environmental damage, prompting a shift toward controlled-release, water-efficient nitrogen fertilizers.
A notable development occurred in October 2023 when the Nakheel Oman Development Company expanded its organic fertilizer plant in Salalah to 100,000 tonnes annual capacity—an initiative supporting eco-friendly nutrient solutions.
Oman Ammonium Nitrate Market
Ammonium nitrate is preferred for fruits, vegetables, and cereals due to its high nutrient efficiency. It supports root development, chlorophyll production, and better crop yields under stressful conditions.
Though effective, ammonium nitrate is regulated due to safety risks, which limits mass adoption. Demand is strongest among commercial farms requiring high-performance fertilizers for controlled environments and intensive cultivation.
Oman Urea Market
Urea is widely used across Oman due to its:
- high nitrogen content
- affordable cost
- ease of application
- suitability for most crops
However, Oman’s high temperatures accelerate nitrogen volatilization from urea, reducing efficiency. This has boosted demand for slow-release urea, coated urea, and precision-fertigation solutions to minimize nutrient loss and improve yields.
Oman Organic Fertilizer Market
The organic fertilizer market is growing steadily due to rising consumer demand for chemical-free produce and increased environmental awareness. Organic fertilizers such as:
- compost
- manure
- plant-based fertilizers
- bio-fertilizers
enhance soil structure, microbial activity, and long-term soil health. Government incentives further encourage adoption in fruit orchards, vegetable farms, and specialty crop cultivation.
Oman Dry Fertilizers Market
Dry fertilizers dominate the market due to:
- long shelf life
- affordability
- ease of storage and transport
Granular fertilizers are preferred for field crops, while powdered water-soluble fertilizers are widely used in greenhouses and hydroponics. With drip irrigation gaining popularity, demand for water-soluble dry fertilizers continues to grow.
Agriculture, Vegetables, and Rice Fertilizer Markets
Agricultural Fertilizers
Used extensively for improving soil fertility and boosting crop output across arid farmlands. Fertilizers are essential for crops such as:
- fruits
- fodder crops
- cereals
- vegetables
- date palms
Precision agriculture and fertigation systems are increasing adoption of high-efficiency fertilizers.
Vegetables Fertilizers
Vegetables—tomatoes, cucumbers, peppers, leafy greens—are key crops in Oman. Fertilizers rich in nitrogen, phosphorus, potassium, and trace minerals support both greenhouse and open-field cultivation. Demand for nutrient-dense, water-soluble vegetable fertilizers is rising rapidly.
Rice Fertilizers
Rice is cultivated on a limited scale, mainly through experimental and small-scale irrigation projects. Nitrogen, phosphorus, and potassium fertilizers are essential for improving grain development. Slow-release nitrogen and bio-fertilizers are gaining importance for sustainable rice production.
Market Segmentation
By Type
- Nitrogen Fertilizers
- Phosphate Fertilizers
- Potash Fertilizers
Nitrogen Fertilizers Sub-Segment
Ammonia, Ammonium Nitrate, Ammonium Phosphate, Ammonium Sulphate, CAN, Potassium Nitrate, Urea, UAN, NK, NPK, NP, Others.
By Category
- Organic
- Inorganic
By Form
- Dry
- Liquid
By Application
- Agriculture
- Horticulture
- Gardening
- Others
By Crop Type
Grassland, Vegetables, Fruits/Treenuts, Roots/Tubers, Sugar Crops, Fibre Crops, Other Oil Crops, Oil Palm, Soybeans, Other Cereals, Maize, Rice, Wheat, Others.
Key Players (Overview, Strategies, Portfolio, Financial Insights)
- Yara International ASA
- K+S AG
- CF Industries Holdings
- Grupa Azoty S.A.
- ICL Group
- OCI NV
- Sociedad Química y Minera de Chile (SQM)
- BASF SE
- PhosAgro
These companies influence the market through innovations in nitrogen products, specialty fertilizers, precision nutrients, and sustainability-focused solutions.
Conclusion
The Oman fertilizer market—projected to reach US$ 357.57 million by 2033 at a 4.38% CAGR—is positioned for steady expansion as the nation accelerates agricultural modernization and sustainability initiatives. Strong government backing, investment in agricultural cities, rising demand for high-yield crops, and growth in controlled-environment farming will continue to stimulate fertilizer consumption. Though challenges such as water scarcity and import dependence persist, ongoing technological advancements and green fertilizer alternatives ensure a robust outlook for the sector through 2033.
