Saudi Arabia Ammonia Market Overview, 2030

The ammonia market in Saudi Arabia includes the production, distribution, use, and export of ammonia (NH₃) within the Kingdom, acting as a vital element of its petrochemical and industrial sectors. Ammonia, which consists of nitrogen and hydrogen, is mainly produced utilizing natural gas through the Haber-Bosch process, a technique that fits well with Saudi Arabia’s extensive hydrocarbon resources. The market is predominantly influenced by the demand from the agriculture sector, where ammonia is employed to produce nitrogen-based fertilizers such as urea and ammonium nitrate, aiding food security initiatives both locally and in export markets. Saudi Arabia is also a major participant in the international ammonia trade, sending substantial quantities to Asia, Africa, and Europe. Essential elements of the market consist of feedstock accessibility, advanced production facilities in industrial areas like Jubail and Yanbu, and strong logistics networks that facilitate both domestic distribution and international shipping. Technological innovations and environmental regulations also have a significant impact, especially as Saudi Arabia starts transitioning to low-carbon and sustainable production techniques. This encompasses investments in blue and green ammonia initiatives, in line with the Kingdom’s Vision 2030 objectives and its larger energy transition strategy. Furthermore, ammonia is becoming increasingly relevant in the hydrogen economy as a possible carrier and storage medium for clean hydrogen, which is crucial to Saudi Arabia’s goals of becoming a worldwide leader in green energy. The market is shaped by regulatory frameworks, safety guidelines, and industrial collaborations with multinational chemical companies.

According to the research report, Saudi Arabia Ammonia Market Overview, 2030, published by Bonafide Research, the Saudi Arabia Ammonia market is anticipated to grow at more than 5.10% CAGR from 2025 to 2030. In Saudi Arabia, ammonia promotion is tightly aligned with the Kingdom’s broader economic diversification and clean energy ambitions under Vision 2030. Instead of traditional product-focused marketing, the country positions blue and green ammonia as strategic tools for global decarbonization. Government-backed initiatives and global collaborations highlight Saudi Arabia’s ability to produce low-carbon ammonia at scale. Industry giants like SABIC and Aramco lead promotional efforts through long-term supply agreements, global trade shows, and partnerships that emphasize product reliability, sustainability, and technological innovation. Marketing efforts target high-demand regions such as East Asia and Europe, where ammonia is gaining traction as a hydrogen carrier and marine fuel. Key drivers include Saudi Arabia’s abundant, low-cost natural gas reserves, enabling cost-effective production of grey and blue ammonia. The government's focus on expanding hydrocarbon value chains beyond crude oil exports has positioned ammonia as a cornerstone of industrial development. The rise in global demand for clean energy carriers further fuels this momentum, prompting large-scale green ammonia projects powered by renewables, especially in zones like NEOM. The Kingdom's infrastructure deepwater ports, export terminals, and industrial clusters provide logistical advantages that support its ambition to be a major ammonia supplier. By aligning with international climate goals, Saudi Arabia effectively markets ammonia as both an industrial input and a clean energy solution.

The ammonia market in Saudi Arabia, categorized by end-use industry, demonstrates the nation’s strategic industrial foundation and its increasing shift toward sustainable sectors. Agriculture continues to be the predominant user of ammonia, acting as a crucial component in the production of nitrogen-rich fertilizers such as urea and ammonium nitrate. These fertilizers are essential not only for enhancing domestic agricultural output but also serve as a significant export commodity, strengthening Saudi Arabia’s status as a worldwide fertilizer provider. In chemical manufacturing, ammonia is a vital raw material for a range of products, including nitric acid, ammonium salts, and other industrial chemicals that are integral to the Kingdom’s vast petrochemical sector. Major production centers like Jubail and Yanbu incorporate ammonia into broader chemical value chains, bolstering downstream industries and exports. The food and beverage industry employs ammonia chiefly for industrial refrigeration systems, owing to its energy efficiency and diminished environmental footprint compared to synthetic refrigerants. This strategy aligns with Saudi Arabia’s initiative for sustainable technologies in food logistics and processing. In wastewater treatment, ammonia performs a dual function: it is a factor that must be monitored due to its environmental effects, and it also acts as a chemical agent in treatment processes that address acidity and facilitate nitrogen removal. This is especially pertinent in urban infrastructure and water reuse projects associated with Vision 2030. The “Others” category encompassing mining, metallurgy, construction, and power generation includes emerging or specialized uses. In mining and construction, ammonia-based compounds are utilized in explosives and materials processing, while in power generation, ammonia is being investigated as a clean-burning fuel or hydrogen carrier. These uses are gaining momentum as Saudi Arabia invests in alternative energy innovations and industrial advancements. Altogether, these varied end-use sectors highlight the flexible role of ammonia in Saudi Arabia’s industrial economy and its increasing significance in fulfilling environmental and energy transition objectives.

The ammonia market in Saudi Arabia, when divided by chemical form, mainly includes anhydrous ammonia and aqueous ammonia, each fulfilling specific roles in different industrial applications. Anhydrous ammonia, a concentrated variant of ammonia, is widely utilized in the agricultural sector as a direct nitrogen source for fertilizers. With about 82% ammonia content, it is well-suited for extensive farming operations, aiding both local agriculture and global fertilizer exports. Anhydrous ammonia is also involved in the manufacture of chemicals such as ammonium nitrate and in certain industrial sectors that need a concentrated nitrogen source. Nevertheless, the management of anhydrous ammonia necessitates stringent safety measures owing to its toxic and corrosive properties, requiring specialized infrastructure for storage and transportation. In Saudi Arabia, the abundance of natural gas as an economical feedstock renders anhydrous ammonia production highly competitive, making it the primary ammonia form utilized in fertilizer production. Aqueous ammonia, which is a mixture of ammonia in water, represents another significant chemical form in the Saudi market. It is typically employed in industries that need a safer, less concentrated version of ammonia. In wastewater treatment, aqueous ammonia plays a vital role in pH stabilization and in the elimination of nitrogenous pollutants, an essential procedure given the Kingdom’s water scarcity challenge. The chemical manufacturing industry also depends on aqueous ammonia for producing a variety of chemicals, such as cleaning products, dyes, and explosives. The food and beverage sector incorporate aqueous ammonia in refrigeration systems, owing to its energy efficiency and non-toxic characteristics compared to synthetic refrigerants. The rising interest in sustainable technologies and energy efficiency in Saudi Arabia has resulted in a consistent demand increase for aqueous ammonia, notably in sectors that emphasize environmental management and sustainable industrial practices. Both forms of ammonia are vital to the Kingdom’s industrial ecosystem, facilitating a diverse array of applications while supporting national sustainability objectives.

The methods for producing ammonia in Saudi Arabia are changing as the nation increasingly moves towards more sustainable and low-carbon options. Grey and brown ammonia are the conventional types, created with natural gas (grey) or coal (brown) utilizing the Haber-Bosch process. Grey ammonia, the predominant type in Saudi Arabia, leverages the country’s extensive natural gas reserves, offering an economical feedstock for ammonia manufacturing. This approach, however, leads to considerable carbon emissions, raising environmental issues and the Kingdom’s continuous efforts to switch to cleaner energy solutions. Brown ammonia, although less prevalent in Saudi Arabia, is generally generated using coal and similarly involves high levels of CO₂ emissions, rendering it less favorable in light of contemporary sustainability objectives. The transition to blue ammonia marks a crucial advancement in the Kingdom’s goal to lessen its carbon footprint. Blue ammonia is created utilizing the same process as grey ammonia but integrates carbon capture, utilization, and storage (CCUS) technologies to seize the CO₂ emissions produced during the manufacturing process. This permits the ongoing use of natural gas as a feedstock while reducing the environmental impact, aligning with Saudi Arabia’s Vision 2030 ambitions and worldwide decarbonization initiatives. Blue ammonia is particularly vital as the Kingdom aims to emerge as a significant exporter of low-carbon ammonia, establishing itself as an essential player in the global shift towards cleaner energy. Green ammonia goes even further, created through electrolysis energized by renewable energy sources such as solar or wind to generate hydrogen, which is then combined with nitrogen to create ammonia. This method emits no CO₂ emissions, rendering it the most sustainable choice. Saudi Arabia’s extensive solar capabilities position green ammonia as a critical component of its energy diversification plan, with ambitious projects underway in areas like NEOM. Turquoise ammonia, still being developed, presents an additional promising pathway by generating hydrogen through methane pyrolysis, yielding solid carbon instead of CO₂. As the technology progresses, turquoise ammonia could evolve into another feasible, low-carbon alternative in the Kingdom’s ammonia market.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Ammonia Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Production Method
• Grey/Brown
• Blue
• Green
• Turquoise

By End-Use Industry
• Agriculture
• Chemical Manufacturing
• Food & Beverage
• Wastewater Treatment
• Others (Mining & Metallurgy, Construction, Power Generation, etc..)

By Chemical Form
• Anhydrous Ammonia
• Aqueous Ammonia

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.