The catalytic activity of hematite (α-Fe2O3) nanowires under the influence of magnetic field on urea synthesis is considered green. The adsorption and subsequent dissociative reaction of hydrogen, nitrogen and carbon dioxide gases on the α-Fe2O3 (111) nanowires were investigated using the density functional theory (DFT) method. The average adsorption energy is �4.12 kcal/mole at different sites. The adsorption of gases resulted in a difference in density and net spin of electrons from 68 to 120 and 0�21 respectively. In addition, it induces magnetic moment value of 36.33 µB, which confirms the enhanced magnetic behaviour of hematite. α-Fe2O3 nanowires (NWs) synthesized by heating iron wire in a box furnace at (750�800) °C and as synthesized α-Fe2O3 nanoparticles (NPs) were received to use as a catalyst in the magnetic reaction of urea synthesis. X-ray Diffractometer (XRD) confirms the peaks of rhombohedral structure of α-Fe2O3 and Raman spectrum analyses confirms the α-Fe2O3 peaks at 410 cm�1, 500 cm�1 and 616 cm�1. The needle-like shape of hematite nanowires with length ranging from 16�25) μm and diameter from 74 to 145 nm confirmed by Field emission scanning electron microscopy (FESEM). The magnetic properties of the nanowires exhibited different levels of saturation magnetization, for α-Fe2O3 perpendicularly aligned direction (13.18 emu/g) and random direction (10.73 emu/g). Urea synthesis was done under magnetic field ranges from 0.0 to 2.5 T. The activation energy of α-Fe2O3 NWs for urea production is lower than NPs in the range of 0�1 T, whereas it is reversed for higher magnetic induction values. Fourier transform infrared spectroscopy (FTIR) confirmed the formation of urea at the peaks of 1690�1600 cm�1. This green urea employing magnetically induced method could be a contender to the Haber-Bosch process currently used by the current industry which utilizes high temperature and high pressure. © 2017 The Authors