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
  • Firms prepare Hudayriat East PPP tunnels advisory bids

    25 June 2026

     

    Abu Dhabi’s Modon Infrastructure, formerly Gridora, has tendered a contract for technical advisory services for the construction of two underwater tunnels connecting the eastern side of Hudayriat Island with mainland Abu Dhabi.

    Consultants have until 26 June to submit their proposals.

    The project includes the construction of a 4.8-kilometre (km) highway, with four lanes in each direction, connecting Hudayriat Island to Mussafah 8th Street.

    The project will be delivered on a public-private partnership (PPP) basis in coordination with the Abu Dhabi Department of Municipalities and Transport and the Abu Dhabi Investment Office.

    The contract term is expected to be 25 years.

    The latest infrastructure development in Abu Dhabi follows Modon Infrastructure’s invitation in May for firms to register for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will also be developed on a PPP basis.

    Modon Infrastructure will act as the lead developer, holding the majority equity stake in the project company. It will award the engineering, procurement and construction contract, as well as the operations and maintenance services and advisory appointments.

    The second phase of the MIPP involves the construction of about 11km of highways, including a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also covers the construction of three interchanges: the E20, E10 and Dumbbell interchanges on Al-Sammaliyyah Island.

    The project includes several major structures, such as the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange with cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further key elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. The project will be completed with another tunnel connecting Bilrimaid Island to Um-Yifeenah Island.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17410214/main.jpg
    Yasir Iqbal
  • Algeria tenders upstream oil project contract

    25 June 2026

    Algeria’s state-owned national oil and gas company, Sonatrach, has tendered a contract for the development and rehabilitation of the central processing facility (CPF) at the Bir Berkine oil and gas field.

    The scope of the contract includes the study, supply, construction and commissioning of a project to rehabilitate the CPF facilities at the field, which is located in the Hassi Mesaoud region.

    Sonatrach says in the tender documents that the objective of the project is to ensure the continuity of production activities “under stable and secure operating conditions”.

    It also says the project aims to improve production yields and quality.

    The contract includes both initial and detailed studies as well as the supply of all equipment and materials.

    It also includes the execution of works, the assembly of all equipment and materials, and the commissioning of all relevant facilities.

    The tender has a two-stage submission process, with the first stage requiring technical bids to be submitted by 23 August.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17423013/main3916.jpg
    Wil Crisp
  • Red Sea Global tenders King Salman Bay construction work

    25 June 2026

     

    Saudi gigaproject developer Red Sea Global (RSG) has tendered a contract inviting firms to undertake marine infrastructure works at King Salman Bay on the Red Sea coast, north of Jeddah.

    The scope includes dredging and earthworks, as well as quay wall and edge protection works spanning about 11 kilometres.

    The bid submission deadline is 31 July.

    King Salman Bay is expected to be a waterfront development aimed at reshaping the city’s northern Red Sea frontage into a mixed-use destination, anchored by public-realm improvements and leisure-led development.

    The update follows RSG’s award of an estimated SR100m ($27m) contract to construct a solid waste management centre at its Red Sea Project. The scope includes four buildings: a material recycling facility, a transfer station, an administration building and a vehicle maintenance building.

    In October last year, MEED reported that RSG had secured a SR6.5bn ($1.7bn) credit facility to further develop Amaala, its luxury tourism destination on Saudi Arabia’s northwestern Red Sea coast.

    According to an official statement, “The funding is led by Riyad Bank as the sole underwriter, along with Saudi Investment Bank and Bank Al-Bilad as mandated lead arrangers.

    “The loan arrangement comprises a mix of conventional and Islamic financing and adheres to RSG’s Green Loan Framework, which was first established when it secured private funding from a consortium of four banks for the Red Sea destination in 2021,” the statement added.

    The announcement followed RSG’s opening of its first properties for sale at Amaala, including branded residential communities and a five-bedroom villa on a private island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17430045/main.jpg
    Yasir Iqbal
  • MECC submits lowest bid on three Kuwaiti oil and gas contracts

    25 June 2026

     

    Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid across three separate contracts tendered by the state-owned upstream operator Kuwait Oil Company (KOC).

    The total value of the low bids is $427m, and all of the contracts are focused on developing substations to power industrial lift pumps and remote header manifolds

    Five companies submitted bids for a contract to develop several substations to power industrial lift pumps and remote header manifolds in areas 6, 10 and 12 in southern and eastern Kuwait.

    The bidders were:

    • MECC: KD65,760,000 ($212m)
    • Heavy Engineering Industries & Shipbuilding Company: KD70,630,000 ($228m)
    • Amco Engineering & Construction: KD73,446,100 ($237m)
    • Combined Group Contracting Company: KD76,186,000 ($246m)
    • Nasser Mohammed Al-Badah & Partner General Trading & Contracting: KD79,332,417 ($256m)

    Six companies submitted bids for a contract to develop several substations to power industrial lift pumps and remote header manifolds in areas 8 and 13 in southern and eastern Kuwait.

    The bidders were:

    • MECC: KD30,760,000 ($99m)
    • Badr Al-Mulla & Brothers: KD32,662,040 ($106m)
    • Heavy Engineering Industries & Shipbuilding Company: KD34,139,000 ($110m)
    • Industrial Company for Electrical Projects: KD36,375,520 ($118m)
    • Nasser Mohammed Al-Badah & Partner General Trading & Contracting: KD37,278,526 ($120m)
    • Combined Group Contracting Company: KD37,790,000 ($122m)

    Eight companies submitted bids for a contract focused on developing several substations to power industrial lift pumps and remote header manifolds in areas 7, 9, and 11 in southern and eastern Kuwait.

    The bidders were:

    • MECC: KD35,760,000 ($116m)
    • Badr Al-Mulla & Brothers: KD39,447,165 ($127m)
    • Amco Engineering & Construction: KD39,736,800 ($128m)
    • Heavy Engineering Industries & Shipbuilding Company: KD40,105,000 ($130m)
    • Industrial Company for Electrical Projects: KD43,238,265 ($140m)
    • Engineering Company for Petroleum & Chemical Industries (Enppi): KD43,514,805 ($141m)
    • Combined Group Contracting Company: KD43,650,000 ($141m)
    • Nasser Mohammed Al-Badah & Partner General Trading & Contracting: KD43,706,826 ($141m)

    Kuwait’s oil and gas sector has been in crisis in recent months due to disruption from the regional conflict that started after the US and Israel attacked Iran on 28 February 2026.

    A preliminary peace agreement between the US and Iran, which was announced on 14 June, has increased optimism that disruption to the sector will decrease in the coming weeks.

    Under the terms of the agreement, both sides have stated that the free flow of vessels will be permitted through the Strait of Hormuz, through which nearly all of Kuwait’s crude oil is normally exported.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17423009/main.jpg
    Wil Crisp
  • Chinese firm wins $265m Saudi hospital contract

    24 June 2026

    Zhejiang Construction International, the local subsidiary of Chinese contractor Zhejiang Construction Investment Group, has won a $265m contract to build the Prince Mohammed Bin Fahd University Speciality Hospital in Al-Khobar.

    Construction is expected to take three years from the start date.

    Prince Mohammed Bin Fahd University awarded the contract.

    Located in Al-Raja district, Al-Khobar, in Saudi Arabia’s Eastern Province, the hospital project will cover about 60,000 square metres.

    The contract covers the construction of a 10-storey hospital building, two five-storey auxiliary buildings connected by corridors and a basement.

    Work will include civil works, mechanical and electrical installation, curtain walling, landscaping, detailed design and the procurement of medical equipment.

    The award is the latest in a series of contracts secured by Chinese contractors from Saudi entities in recent months.

    Last week, MEED reported that Saudi Arabia’s Ministry of Municipalities & Housing awarded contracts worth more than SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    China Architectural Construction Corporation won the first contract, valued at SR875m ($233m), to build 2,010 housing units at the Al-Ruba residential project in Riyadh.

    China State Construction Engineering Corporation secured the other contract, valued at more than SR1bn ($266m), for the Al-Rasha Al-Faisaliah residential project in Dammam, comprising 2,426 housing units.

    GlobalData expects Saudi Arabia’s construction industry to record average annual growth of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure, as well as the $850bn-plus gigaprojects programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17412846/main.jpg
    Yasir Iqbal