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
  • Renewables projects in Oman near completion

    9 March 2026

    Three Oman-based renewable energy projects are nearing completion, according to OQ Alternative Energy (OQAE), part of Oman’s state-backed energy group OQ.

    The Riyah 1, Riyah 2 and North Solar projects have a combined capacity of 330MW and are expected to be operational by the end of the year, the renewable energy firm said in a statement.

    The Riyah 1 and Riyah 2 wind power plants are located in the Amin and West Nimr fields in southern Oman, while the North Solar project is located in northern Oman.

    OQAE owns a 51% share in the three projects, which are being developed in partnership with France’s TotalEnergies for state-backed firm Petroleum Development Oman (PDO).

    The schemes have a combined investment of more than $230m.

    Once commissioned, PDO will purchase the electricity from the plants through long-term power-purchase agreements with the developer team, whose 49% shares are owned by TotalEnergies.

    According to OQAE, the North Oman Solar project is approaching mechanical completion. About 95% of tracker and photovoltaic (PV) module installation has been completed, with full PV module installation expected by mid-March.

    Construction is also progressing on the Riyah wind projects. Seven wind turbines with a tip height of 200 metres have been erected and installation works are continuing on the remaining units.

    All 36 wind turbine generators have arrived in Oman and 19 have been transported from the port to the site. All wind turbine foundations have also been completed, allowing installation works to accelerate.

    OQAE said the projects have achieved about 30% in-country value, with several local companies involved in the supply chain.

    These include Voltamp, Oman Cables, Al-Kiyumi Switchgear and Al-Hassan Switchgear, which supplied electrical equipment and infrastructure components.

    Substation engineering design was carried out by Worley Oman. Muscat-based business conglomerate Khimji Ramdas handled logistics and customs management for turbine components.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15910036/main.jpg
    Mark Dowdall
  • Dubai’s real estate faces a hard test

    9 March 2026

    Commentary
    Yasir Iqbal
    Construction writer

    Register for MEED’s 14-day trial access 

    Dubai entered 2026 from a position of historic strength. Dubai Land Department figures show AED917bn ($250bn) in real estate transactions in 2025 across more than 270,000 deals, with residential prices up 60%-75% since 2021.

    In January 2026, the surge extended. Residential transaction values jumped 44% year-on-year to AED55bn. By most measures, it was Dubai’s strongest property cycle on record.

    Then the drones and missiles arrived.

    Iran has reportedly launched more than 1,000 drones and missiles towards UAE targets in recent days. Most of these attacks were neutralised, but debris struck its major assets, such as the Burj Al-Arab hotel and Dubai International airport. Explosions were also reported near the Fairmont the Palm hotel, the US Consulate and in Dubai Marina. These are not shocks that can be quietly absorbed by a market whose value proposition rests on being “safe”.

    Dubai property has been stress-tested before. In 2008, prices fell 50%-60% and took six years to recover. A 2014-19 correction knocked off another 25%-30%. Covid-19 was sharper but shorter, with the market stabilising within 12-18 months. Dubai tends to correct hard, then rebound quickly once confidence returns.

    What’s different now is the nature of the shock, which is the physical damage to the city itself. The core question is whether Dubai’s safe-harbour identity, which is what drew thousands of millionaires and billions in personal wealth last year, can survive missiles landing across the city for long.

    Markets have reacted negatively, as expected. Emaar and Aldar shares fell about 5% in a few days. Developer bond markets are largely shut to new issuance. Off-plan sales, which are about 65% of 2025 transactions, are most exposed because buyers must commit capital years ahead of planned delivery dates amid uncertainty.

    Fitch had already projected a correction of up to 15% in late 2025-26; UBS ranked Dubai fifth out of 21 cities for bubble risk.

    There are offsets, however. Regional capital flight has historically flowed into Dubai, and a large expatriate base provides steady demand. But it is unwise to assume past recovery patterns will repeat amid the unprecedented times, and a 2026 delivery pipeline of over 131,000 units, which is already running ahead of population growth.

    Dubai now faces two risks at once: a structural correction and a reputational shock. The outcome hinges less on the data than on one variable: how long the conflict lasts, and how close it stays.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15910169/main.jpg
    Yasir Iqbal
  • Bahrain’s Bapco Energies declares force majeure

    9 March 2026

    Register for MEED’s 14-day trial access 

    Bahrain’s state energy conglomerate Bapco Energies has declared force majeure on its group-wide operations following attacks on the Sitra oil refinery in the country.

    In a statement on 9 March, Bapco Energies said its decision to issue the force majeure notice follows “the recent attack on its refinery complex”, without providing details.

    Earlier in the day, Bahrain’s National Communication Centre announced that “the facility in Ma’ameer” – an apparent reference to the refining facility in near Sitra – had been targeted in an Iranian attack, causing a fire to break out. The fire was contained, and “the incident resulted in material damage but caused no injuries or fatalities”, said the statement carried by the official Bahrain News Agency.

    “The company clarified that all local market needs are fully secured according to the proactive plans in place, ensuring the continuity of supplies and meeting local demand without impact,” Bapco Energies said in its statement.

    “Bapco Energies values its relationships with all of its stakeholders and will continue to communicate the latest available information,” it said.

    The Monday morning attack on the Sitra refinery was the second strike on the complex in days. Iranian missiles hit the facility on 5 March, resulting in parts of the refinery being engulfed in flames, although that fire was also put out quickly.

    ALSO READ: Oil prices soar above $100 a barrel as conflict intensifies

    QatarEnergy has also issued force majeure to customers that have been affected by its decision to stop production and shipments of liquefied natural gas (LNG) and associated products.

    “QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” the state enterprise said in a statement on 4 March.

    QatarEnergy announced its decision to halt production of LNG and associated products on 2 March due to military attacks on the company’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in Qatar.

    The following day, the company said it was stopping output of products in the downstream energy value chain, including urea, polymers, methanol, aluminium and other products.

    The state enterprise did not blame Iran for the attacks in either of its statements, but it is understood that its facilities have been hit by drones or missiles launched by Tehran, as it retaliates against Israel, the US and their military bases in the GCC states, further escalating the ongoing conflict.

    ALSO READ:
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15910429/main.jpeg
    Indrajit Sen
  • Wade Adams wins more work in Dubai

    9 March 2026

    Dubai-based Wade Adams Contracting has been awarded two contracts covering infrastructure works in the Nad Al-Sheba and Villanova communities in Dubai.

    The first contract, which was awarded by local real estate developer Dubai Holding, covers roads and infrastructure works for the spine road at its Nad Al-Sheba residential development.

    The scope of work includes the development of the road network, service reservation, storm water drainage, street lighting, traffic control, potable water system and sewage collection system.

    The work also covers the main irrigation system, fire-fighting system, electrical power ducts, telecommunications, spare ducts, irrigation pump station, storm pump station and all utility tie-in connections to adjacent packages.

    The project area covers 2,800 square metres (sq m).

    The other contract covers the infrastructure works for the La Tilia cluster at the Villanova development.

    The scope of work includes ground investigation, demolition and site clearance, earthworks, road network, Dubai Electricity & Water Authority-related works, street lighting, telecommunications, irrigation, drainage, sewerage and spare ducts.

    In August last year, Wade Adams Contracting was awarded a contract to carry out infrastructure works within the Nad Al-Sheba Gardens development in Dubai, as MEED reported.

    The contract includes enabling works, roads and utility services in Zones C, D and H of the development.

    The project spans an area of over 550,000 sq m within Nad Al-Sheba Gardens.

    This latest contract adds to the work awarded to Wade Adams in January, which included two contracts for grading and enabling works in clusters D and H of Nad Al-Sheba Gardens, as well as infrastructure works in Zone E.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15909803/main.jpg
    Yasir Iqbal
  • Roshn signs $177m investment deal with local developer

    9 March 2026

    Saudi gigaproject developer Roshn Group has signed an investment agreement worth over SR650m ($177) with Riyadh-based developer Miskan Real Estate Development Company.

    The agreement will allow the firm to develop a project spanning more than 68,000 square metres (sq m) of land within the Warefa community in Riyadh.

    The latest agreement follows Roshn Group's signing of several land sale and development deals with local developers, worth over SR2bn ($570m).

    The agreements were signed on the sidelines of the recently concluded Restatex Real Estate Exhibition in Riyadh.

    The signed agreements cover residential and commercial projects at Roshn’s Sedra and Warefa communities in Riyadh.

    The client signed three agreements worth over SR1.3bn ($363m) related to its Sedra residential community. These include a SR1bn ($293m) agreement with Jeddah-based developer Arabian Dyar for a 55,000 sq m plot.

    Another agreement was signed with Riyadh-based firm Tiraz Al-Arabia to build integrated commercial facilities within the Sedra development. The value of this deal has yet to be disclosed.

    In a separate announcement, Alramz Real Estate Company said it has signed a SR262m ($70m) agreement to acquire and develop a plot spanning over 14,000 sq m for a 240-unit residential project in Sedra.

    In Warefa, Roshn signed two agreements totalling SR781m ($208m).

    It signed a SR548m ($146m) deal with Sateaa Altameer for Real Estate to develop a site spanning an area of over 108,000 sq m.

    Another SR233m ($62m) agreement was signed with Fayziyya for Real Estate Development for a plot covering 46,000 sq m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15909425/main.png
    Yasir Iqbal