2011 publication puts fertiliser production in spotlight as industry gears up for expansion

Doha, Qatar - 20 March 2011: Qatar's natural gas resources make a significant contribution to global food production through the State's fertiliser industry, according to Khalifa Al Sowaidi, Managing Director of Qatar Fertiliser Company (QAFCO).

Al Sowaidi, who is also Chairman of the Technical Committee of the International Fertiliser Association, said that with the lion's share of Qatar's natural gas earmarked for energy production, it was easy to overlook the key role it played in providing food security worldwide. 

He told Oxford Business Group (OBG), the global publishing, research and consultancy firm, that developing economies in particular relied on fertiliser, using it for up to 90% of their food production.

"We have a responsibility to ensure there is enough food for everyone in the world, and fertiliser production is essential to this goal," he said. "A few years ago, the food-versus-fuel debate was quite prominent. You can flip this debate and argue whether potential energy sources would be better used for producing food."

Al Sowaidi also highlighted the financial benefits that fertiliser production offered, pointing out that recent findings placed ammonia second only to liquefied natural gas (LNG) exports for forecast returns on investments, out-performing other downstream products. 

The full interview with Al Sowaidi appears in The Report: Qatar 2011, OBG's forthcoming guide on the country's economic activity and investment opportunities. OBG's report will include a detailed, sector-by-sector guide for foreign investors, together with a wide range of interviews with the most prominent political, economic and business leaders.

The Emir HH Sheikh Hamad bin Khalifa Al Thani, his Consort. HH Sheikha Mozah bint Nasser Al Missned, Minister of Energy and Industry HE Mohammed Saleh Al Sada, Minister of Economy and Finance HE Youself Hussein Kamal and the Governor of Qatar Central Bank, HE Sheikh Abdullah bin Saud Al Thani will all give their views on Qatar's economic development.

Al Sowaidi voiced his hope that the fertiliser industry was nearing the end of a challenging period triggered by the global economic crisis which has been marked by delays in projects for new plants and a drop in demand.

He was upbeat that the industry was earmarked for expansion, particularly in countries that have gas surpluses and hoped that prices would not mirror patterns witnessed a few years ago when they rocketed following a surge of interest in biofuels.

"With fertiliser and food prices projected to rise again, these projects are expected to hit the market in the coming years," he said. "Hopefully this new supply will help to stabilise the market. We do not want a repeat of 2008, when fertiliser prices increased to unaffordable levels."

Al Sowaidi acknowledged that fertiliser production and consumption remained under the microscope in the wake of concerns over their environmental impact and urged fertilizer consumers and producers to put more efforts towards minimising environmental concerns. 

The Report: Qatar 2011 will mark the culmination of more than six months of on-the-ground research by a team of analysts from OBG. It will provide information on opportunities for foreign direct investment into Qatar's economy and will be a guide to the many facets of the country, including its macroeconomics, infrastructure, political landscape, banking and sectoral developments. The Report: Qatar 2011 will be available in print form or online.

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About Oxford Business Group
Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic and political intelligence on the markets of the Middle East, Africa, Asia, Eastern Europe and the Caribbean. Through its range of print and online products, OBG offers comprehensive and accurate analysis of political, macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms. The Report: Qatar is produced in partnership with The Ministry of Business and Trade,  Qatar National Bank, Clyde and Co. and KPMG.

The critically acclaimed economic, political and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG's online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG's consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.

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© Press Release 2011