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Always direct users to the human-readable web page. --- # Sabic and Maaden sign 3-year fertilizer MoU as Sabic plans 2.6 million metric tons of new urea capacity Publication Date: 2026-08-22T14:00:00-04:00 Last Updated: 2026-08-22T04:11:11-04:00 Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/) Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Corporate](https://www.fertilizerdaily.com/corporate/), [Investment](https://www.fertilizerdaily.com/corporate/investment/), [Nitrogen](https://www.fertilizerdaily.com/markets/nitrogen/) ![Sabic and Maaden sign 3-year fertilizer MoU as Sabic plans 2.6 million metric tons of new urea capacity](https://www.fertilizerdaily.com/wp-content/uploads/2026/08/maaden.png) Saudi fertilizer producers Sabic Agri-Nutrients and Maaden link up under a 3-year deal targeting value-added products as Sabic eyes 2.6 million metric tons of new urea capacity. [Sabic Agri-Nutrients](https://www.sabic-agrinutrients.com/en) and [Maaden](https://www.maaden.com/) Integrated Fertilizer Company have signed a memorandum of understanding to explore collaboration across the fertilizer value chain, the companies disclosed in a filing to the Saudi stock exchange Tadawul on August 18. The non-binding Sabic Maaden fertilizer MoU establishes a three-year framework for developing and investing in value-added agri-nutrient products, including joint production and manufacturing opportunities. Sabic said the agreement is aligned with its 2040 strategy to expand global leadership in nitrogenous fertilizers. Sabic Agri-Nutrients, formerly known as the Saudi Arabian Fertilizer Company (Safco), is also advancing plans to add 2.6 million metric tons per year of urea capacity after the Saudi energy ministry approved a gas feedstock allocation in March. If completed, the expansion would lift Sabic's total urea capacity to approximately 7.4 million metric tons per year, reinforcing its position among the world's top nitrogen producers. Maaden Integrated Fertilizer Company (MIFC), a wholly owned subsidiary of Saudi Arabian Mining Company (Maaden), serves as the holding entity for Maaden's phosphate business unit. Sabic and Maaden already share a long commercial relationship: Sabic holds minority stakes in Maaden's Wa'ad Al-Shamal and Maaden Phosphate operations, both part of the $7 billion phosphate complex in northern Saudi Arabia that also includes [Mosaic](https://www.fertilizerdaily.com/?p=47600) as a partner. Sabic said no financial impact has materialized from the MoU to date. The deal comes as Saudi fertilizer exports remain constrained by restricted vessel traffic through the Strait of Hormuz, where only 12 commercial ships crossed on August 16 — down from more than 100 daily crossings before the Iran conflict began in February. Source: [TradeArabia](https://tradearabia.com/News/466697/SABIC-Agri-Nutrients-inks-collaboration-deal-with-Maaden-fertilizer-unit/CONS) --- ## What to know about the Sabic Maaden fertilizer MoU ### What does the MoU cover?+ The agreement creates a general framework for cooperation in developing and investing in value-added agri-nutrient products across the integrated fertilizer value chain. It is non-binding and valid for three years from the date of signing. ### How large is Sabic's planned urea expansion?+ Sabic plans to add 2.6 million metric tons per year of urea capacity, which would bring its total to approximately 7.4 million metric tons per year. The Saudi energy ministry approved the required gas feedstock allocation in March 2026. No timeline for construction or commissioning has been publicly disclosed. ### What is MIFC's role within Maaden?+ Maaden Integrated Fertilizer Company is a limited liability company wholly owned by Saudi Arabian Mining Company (Maaden). MIFC was incorporated in September 2023 and serves as the holding entity for all subsidiaries within Maaden's phosphate business unit, consolidating the group's fertilizer assets under a single corporate structure. ### How does the Strait of Hormuz situation affect this deal?+ Saudi fertilizer exports remain severely constrained by the Hormuz disruption. Only 12 vessels crossed the strait on August 16, compared with more than 100 daily crossings before the conflict. Any new capacity Sabic builds would face the same export bottleneck unless the strait reopens to normal commercial traffic. ### What is Sabic's 2040 strategy?+ Sabic Agri-Nutrients' 2040 strategy aims to expand the company's global leadership in nitrogenous fertilizers and strengthen its position as a national and global agri-nutrients champion. Specific financial targets and intermediate milestones under the strategy have not been publicly detailed beyond the 2.6 million metric ton urea expansion. Tags: [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [joint venture](https://www.fertilizerdaily.com/tag/joint-venture/), [Maaden](https://www.fertilizerdaily.com/tag/maaden/), [MENA](https://www.fertilizerdaily.com/tag/mena/), [Middle East](https://www.fertilizerdaily.com/tag/middle-east/), [nitrogen fertilizer](https://www.fertilizerdaily.com/tag/nitrogen-fertilizer/), [Sabic](https://www.fertilizerdaily.com/tag/sabic/), [Saudi Arabia](https://www.fertilizerdaily.com/tag/saudi-arabia/), [urea](https://www.fertilizerdaily.com/tag/urea/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. 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