meed-logo

line1 line2 line3
SIGN IN / REGISTER

Region prepares for circular plastics economy

23 June 2023

 

Representatives from the Gulf petrochemicals industry, plastics manufacturers and wider derivatives producers gathered at the Gulf Petrochemicals & Chemicals Association plastics conference in Saudi Arabia in May. There, it was agreed that while a “demonisation” of the plastics industry had indeed taken place, this was not entirely unjustified.

The Gulf region is a major producer of plastic products, among other petrochemicals derivatives. Furthermore, the GCC has been investing significantly in building large production complexes for petrochemicals – the basic feedstock for the manufacturing of plastics. 

However, despite irresponsible plastics usage and wastage being major environmental pollution issues worldwide, only about 10 per cent of plastics are recycled at present. This is due to the variability of plastics waste, contamination and gaps in the existing infrastructure.

“Every person on this planet is probably horrified by the pictures of plastic objects floating in the ocean, wildlife entangled in or ingesting plastic and mountains of plastic on dump sites and littered everywhere,” says Martyn Tickner, chief adviser of circular solutions for Alliance to End Plastic Waste, an industry-funded non-profit organisation based in Singapore. 

“Such pollution is a problem of lack of basic waste management. Three billion people – more than 35 per cent of the global population – are considered to lack access to adequate solid waste collection and properly managed disposal.”

Major pollution source

About half of global plastic waste is sent to landfill, about 20 per cent is incinerated, and the rest is either littered or burned in the open, causing severe pollution both on land and in the seas.

“Plastic, due to its non-biodegradable nature and potential toxicity, demands responsible usage and disposal,” says Hani Tohme, managing director – Middle East and head of sustainability in the Middle East and North Africa (Mena) region at Roland Berger, an international management consultancy headquartered in Germany. 

“However, current consumption patterns – particularly the reliance on single-use plastics – coupled with often insufficient waste management infrastructure, lead to widespread environmental pollution. 

“When not properly managed, plastic contributes significantly to land litter, marine pollution, and overall environmental degradation,” he says.

The need for recycling

Many of the severe environmental pollution problems arising from unsustainable plastics utilisation and the consumption of single-use plastics can be mitigated through the adoption of a circular plastics economy.

This is a system aimed at “reducing plastic waste globally”, say Devesh Katiyar, principal, and Jayanth Mantri, manager, at Strategy& Middle East, part of the PwC network. 

“It involves products designed for recyclability, efficient collection and sorting of plastic waste, advanced recycling technologies and policies to promote recycling.” 

They add that the scope of a circular plastics economy is global. “Annually, about 400,000 tonnes of plastic waste is traded globally, despite several restrictions. Driving circularity in plastics helps to reduce waste, conserve resources and avoid emissions and energy use associated with virgin plastics production, thereby promoting a sustainable and eco-friendly approach to managing plastics.”

Roland Berger’s Tohme adds that a circular plastics economy “disrupts the traditional linear model of ‘take-make-waste’ by adopting a restorative and regenerative approach”. 

“This framework incorporates the principles of ‘reduce, reuse and recycle’, along with strategies for designing out waste and pollution, maintaining products and materials in circulation and regenerating natural systems.”

Developing a circular and low-carbon economy for plastics requires changes at every stage of the plastics value chain, both upstream and downstream, says Tickner.

“Upstream solutions are those that endeavour to reduce the magnitude of the problem through the elimination of unnecessary use, the adoption of more sustainable alternatives and the redesigning of supply chains and delivery models to encourage reuse.” 

These solutions disrupt the root causes of today’s environmental crisis, he adds. “Reuse within the commercial, business-to-business supply chains – for example of packaging used to deliver from factory to warehouse – can be adopted quite quickly.”

Downstream solutions, meanwhile, are post-use. “Here, 100 per cent collection is a basic requirement to eliminate leakage into the environment,” Tickner explains.

The successful implementation of a circular plastics economy requires systemic changes and collaboration among stakeholders, including governments, businesses and consumers
Hani Tohme, Roland Berger

Open or closed loop

The plastics recycling process can be categorised as open-loop or closed-loop. 

Open-loop recycling is typically mechanical – converting plastic waste into less demanding plastic applications or using it in other material economies, such as the construction industry.

Closed-loop recycling means returning plastic back into high-value plastic applications, either directly, through advanced mechanical or dissolution technologies, or back to chemicals feedstock via chemical recycling. 

The technologies required to recycle almost all types of materials are available, or are rapidly emerging. As a result, overcoming the recycling challenge is primarily an issue of creating the right financial environment to enable major investment in the collection, sorting and recycling infrastructure.

The commercial case for plastics recycling 

Role of governments

Regional governments and regulatory authorities will need to play a role in supporting the growth of the plastics industry, as well as in ensuring the effective and sustainable consumption of plastics.

“A circular plastics economy offers a transformative approach to addressing the plastic waste crisis, promoting economic growth while reducing environmental impact,” says Tohme. “However, the successful implementation of this model requires systemic changes and collaboration among stakeholders, including governments, businesses and consumers.” 

Robust frameworks and proven best practices “play a pivotal role in guiding organisations to develop sustainable strategies, innovative business models and effective operational transformations, ultimately determining the success of their transition to a circular economy”, he says.

Strategy& Middle East’s Katiyar and Mantri note that governments and regulatory authorities can support the sustainable growth of the plastics industry in several ways. 

“They can implement policies and regulations such as bans and taxes on single-use plastics, extended producer responsibility programmes and incentives for advanced recycling and imports of plastic waste destined for recycling.

“In addition, they can create global closed-loop supply chains and material marketplaces to gain access to feedstock. And they can develop infrastructure for the collection, sorting and recycling of plastic waste – both within the region and abroad,” they continue. 

“The Mena region has the potential to attract investments of between $30bn and $40bn over the next two decades,
to build a truly world-class recycling infrastructure.”

The problems with plastics
  • Non-biodegradable: The environmental concerns surrounding plastic stem largely from its non-biodegradable nature. Most plastics take hundreds of years to decompose naturally. This inherent property means that plastic waste tends to accumulate in the environment over time rather than breaking down and returning to the ecosystem.
  • Microplastics and toxic chemicals: When plastics degrade, they break into tiny particles known as microplastics rather than biodegrading. These particles can be ingested by wildlife, with detrimental and often fatal results. Moreover, certain types of plastics contain chemicals that can leach out over time, particularly when exposed to heat or sunlight. These chemicals can contaminate soil and water, posing risks to wildlife and potentially infiltrating the food chain.
  • Greenhouse gas emissions: The impact of emissions is related on the one hand to the production of plastics – making virgin plastics, for instance, from oil – and on the other hand to the open burning and incineration of plastics after they have been disposed of in systems that lack proper waste management. This is happening in both developing and developed countries.
Addressing the environmental impact of plastics
  • Reusability: Most plastics consumed today are single-use plastics, in packaging and fast-moving consumer goods (FMCG) products such as plastic bags, straws and cutlery. A shift from single-use to reusable plastics is an important way to reduce the volume of plastic being consumed, thus reducing the overall impact. 
  • Light-weighting: Another key way to reduce the volume of plastic consumed is to reduce the weight of the plastics in products. This has been an area in focus for FMCG and packaging companies in recent years.
  • Design: Plastic packaging and products that are made of plastic layers glued with other fibres and laminates cannot be recycled easily, or at a cost that does not exceed the actual value of the material. Therefore, designing plastics products and packaging that are recyclable is another way to address the environmental impact of plastics.
  • Inadequate waste management and resulting pollution: Compounding these issues, an inadequate waste management infrastructure in many parts of the world is unable to effectively handle the volume of plastic waste. This leads to widespread littering of landscapes and waterways, accumulation of plastic in landfills and marine pollution. About 8-12 million metric tonnes (mt) of plastic enters our oceans each year, significantly threatening marine life – some estimates are even as high 14 million mt. On land, plastic waste similarly disrupts habitats and negatively impacts wildlife.

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/10962800/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia tenders Jeddah-Mecca highway PPP

    8 May 2026

     

    Saudi Arabia’s Roads General Authority (RGA) and the National Centre for Privatisation & PPP (NCP) have tendered the contract for the development of the Jeddah-Mecca highway project.

    The tender was issued on 19 April, with a bid submission deadline of 19 August.

    The scope of the tender is split into two sections: development of motor service areas (MSA) and highway services. 

    Under the MSA component, the company will develop, permit, finance, design, engineer, procure, construct, complete, test, commission, insure, operate and maintain three MSAs along the highway.

    The contract term is 25 years, including two years of the construction period.

    Each MSA plot will cover 34,500 square metres and will include facilities such as fuel stations, electric vehicle charging, truck services, tyre and oil change, car wash and repair, retail and food outlets, ATMs, restrooms, mosques, parking, landscaping and other associated utilities.

    The highway services component will include insurance, operation and maintenance of highway assets for 10 years.

    The 64-kilometre (km) Jeddah-Mecca highway has four lanes in each direction. The construction works on 51km are complete, while the rest is under construction and scheduled for completion in 2027.

    In March, the RGA and NCP prequalified three bidders to develop the project. These were:

    • Algihaz Holding / ICA Construction (local/Turkiye)
    • Lamar Holding / Shaanxi Construction Engineering Group Corporation (Bahrain/China)
    • Mada International Holding (local)

    The expression of interest notice for the project was first issued in October 2024, as MEED reported.

    The project is one of four planned highway schemes in the kingdom’s privatisation and public-private partnership (P&PPP) pipeline.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16731199/main.jpg
    Yasir Iqbal
  • US sanctions Iraq’s deputy oil minister

    8 May 2026

    The US has sanctioned Iraq’s Deputy Oil Minister Ali Maarij Al-Bahadly, in another blow for the country’s oil and gas sector.

    In a statement released by the US Treasury, it said that he “abuses his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq”.

    The US Department of the Treasury’s Office of Foreign Assets Control (Ofac) has also designated three senior leaders of the militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq. 

    In its statement, it said that the US will continue to hold these groups and other militias in Iraq, such as Kata’ib Hizballah, accountable for their attacks against US personnel and civilians, diplomatic facilities and businesses across Iraq.

    Secretary of the Treasury, Scott Bessent, said: “Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people.”

    He added: “Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners.”

    Ofac said that it designated Iraq’s deputy minister of oil on 7 May because he had been “instrumental in facilitating the diversion of Iraqi oil products to benefit known Iran-affiliated oil smuggler Salim Ahmed Said, as well as Iran-backed terrorist militia Asa’ib Ahl Al-Haq (AAH)”.

    It added: “For years, Maarij has used his official positions, first as the head of the Iraqi parliament’s oil and gas committee, and then within the Iraq Ministry of Oil, to enrich Said, AAH, and by extension, Iran.”

    The US Treasury said that it designated Said in June 2025 for running a network of companies selling Iranian oil falsely declared as Iraqi oil to avoid sanctions.

    In its statement, it said: “Integral to this operation was Said’s ability to obtain favoured access to Iraqi oil and procure forged documentation from Iraqi government officials, legitimising illicit oil.

    “To that end, Said was responsible for bribing complicit officials in the Iraqi government, as well as reportedly installing Maarij in his official position.”

    Since 2018, Maarij has held several positions in Iraq’s Oil Ministry, including head of the licensing and contracts office, deputy minister, and acting oil minister. 

    The US Treasury said that, in his official capacities, Maarij enabled Said to illicitly procure oil products by granting exportation rights to Said’s companies. 

    It claimed that Maarij authorised trucking several million dollars’ worth of oil a day from the Qayarah oil field to VS Oil Terminal in Khor Zubayr for export.

    The US sanctioned VS Oil Terminal in July last year.

    The US Treasury said that VS Oil oversaw the mixing of Iranian oil with Iraqi oil before being shipped to market. 

    It also said that Maarij is also responsible for falsifying documentation on the provenance of oil for Said’s network, enabling it to be smuggled to market disguised as purely Iraqi oil.

    Neither Iraq nor Iran has responded to the announcement of the new sanctions.

    The sanctions were announced as the US and Iran battle over control of the Strait of Hormuz, which has seen significant disruption to shipping since the US and Israel started their war with Iran on 28 February 2026.

    Iraq’s oil and gas sector is currently going through a crisis due to the disruption to shipping through the Strait of Hormuz, which has caused the country’s oil exports to collapse.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16729987/main.png
    Wil Crisp
  • Sabic registers profit in first quarter of 2026

    8 May 2026

    Saudi Basic Industries Corporation (Sabic) returned to profit in the first quarter of 2026, posting a net income of SR13.2m ($3.52m) compared to a SR1.21bn loss a year earlier. 

    The Saudi petrochemicals ​giant posted adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of SR4.15bn for the three months to 31 March, up 25% from the previous quarter.

    The company’s revenue fell 6% quarter-on-quarter to SR26.15bn ($6.97m).

    Adjusted net income was recorded in at SR816m, compared to a loss in the previous quarter, while adjusted earnings per share stood at SR0.27.

    Adjusted earnings before interest and taxes rose to SR1.45bn, an increase of SR1.01bn from the prior quarter.

    Sabic said its net position shifted to a debt of SR2.77bn at the end of March, from a net cash position of SR3.61bn at the end of 2025.

    “Our transformation journey continues to deliver performance improvements that unlock greater value for our shareholders. We realised $220m at the Ebitda level on a recurring basis during the first quarter of 2026, in line with our planned improvement rate. This keeps us on track towards our cumulative 2030 annual target of $3bn, consisting of $1.4bn in cost excellence and $1.6bn in value creation,” Sabic CEO Faisal Alfaqeer said.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16719476/main1840.jpg
    Indrajit Sen
  • Dubai extends bids for Hassyan SWRO pipeline packages

    7 May 2026

    Dubai Electricity & Water Authority (Dewa) has extended the bid submission deadlines for two water transmission pipeline packages linked to phase two of the Hassyan seawater reverse osmosis (SWRO) desalination plant in Dubai.

    The tenders cover the supply, installation, testing and commissioning works for glass reinforced epoxy (GRE) water transmission pipelines. The project will enable potable water to be transmitted from the phase two plant into Dubai’s transmission network.

    The tender bond for the first package is AED9.6m ($2.6mn). The tender bond for the second project is AED17.9m. The deadlines for the two projects have been pushed back to 2 June and 4 June, respectively.

    Local firms Al-Nasr Contracting, Tristar E&C and Wade Adams, along with UAE firm Binladin Contracting Group, are among the companies expected to submit bids for the main contracts for these projects.

    In April, Dewa issued two separate tenders for transmission projects in the emirate.

    The first tender covers the supply, installation, testing and commissioning of GRE water transmission pipelines and associated works at several locations in Dubai. The closing date for submissions is 4 June. Bidders are required to provide a tender bond of AED9m ($2.45m).

    The second tender relates to 132kV cable works and associated modifications at several substations, including the Autosouq, Crystal and Danaro Road substations. The package also includes a new 132kV cable circuit and cable shifting works linked to the DXB INTRL 400/132kV substation.

    The bid submission deadline is 11 June, with a required tender bond of AED17.5m.

    In January, Dewa announced that construction of the 180 million imperial gallons a day phase one of the Hassyan SWRO independent water project was 90% complete.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16716599/main.jpg
    Mark Dowdall
  • Teams form for Qiddiya high-speed rail PPP

    7 May 2026

     

    Firms are forming joint ventures as part of a public-private partnership (PPP) package to bid for the upcoming works on the Qiddiya high-speed rail project in Riyadh.

    The latest development follows Saudi Arabia’s Royal Commission for Riyadh City, Qiddiya Investment Company and the National Centre for Privatisation & PPP receiving prequalification statements from firms by 30 April for the PPP package of the rail project.

    The consortiums that are planning to bid for the PPP package are:

    • McQuarie / Hitachi / Keolis / Albawani / WeBuild / Hyundai / HyundaiRotem
    • ⁠Plenary / Siemens / MTR / FCC / Nesma & Partners / Freyssinet
    • ⁠Vision Invest / CRRC / Mapa 
    • Mada International / ⁠Renfe / Alstom / Hassan Allam Construction / El-Seif Engineering Contracting / China State Construction Engineering Corporation / Limak Holding
    • Lamar Holding / Talgo / Mermec / China Harbour Engineering Company / Al-Ayuni Investment & Contracting

    The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.

    The Qiddiya high-speed rail project, also known as Q-Express, will cover 84 kilometres, connecting King Salman International airport and King Abdullah Financial District with Qiddiya City.

    The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    There are five stations planned: Qiddiya Grand Central Station, Qiddiya Uptown Station, King Abdullah Financial District, Terminal 6 King Salman International Airport (KSIA) and Iconic Terminal at KSIA.

    Last month, MEED exclusively reported that contractors had submitted their prequalification statements for the engineering, procurement, construction and financing package by 16 April.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16716585/main.jpg
    Yasir Iqbal