Every year, the world generates over 2 billion tons of municipal solid waste, yet only around 19% of it is recycled. By 2050, global waste generation is projected to reach 3.40 billion tonnes, outpacing population growth more than twofold. Waste production tends to rise with income levels, as evidenced by the anticipated 19% increase in daily per capita waste generation in high-income countries. In contrast, low- and middle-income nations are expected to see a 40% or greater surge, highlighting a growing disparity in waste management challenges worldwide[1][2].

But what if waste wasn’t waste at all? What if it was an untapped economic opportunity? With Global Recycling Day on March 18, now is the time to explore how Saudi businesses can embrace circular economy strategies, transforming discarded materials into valuable resources, driving economic growth, and contributing to Vision 2030’s sustainability goals.

Waste Management & Circularity in Saudi Arabia

Saudi Arabia generates approximately 15 million tons of municipal solid waste annually, with a per capita daily production of 1.4 kg. Given the current annual population growth rate of 3.4%, this figure is projected to double to 30 million tons per year by 2033[3]. Yet, much of this waste ends up in landfills, polluting the environment and depleting valuable resources—highlighting the urgent need for a shift towards more sustainable waste management practices.

A report indicates that Saudi Arabia's waste management sector currently achieves a recycling rate of only 3% to 4%, among the lowest globally[4]. This stark reality underscores the immense untapped potential for recycling, urging a collective effort to transform waste into valuable resources and protect the environment for future generations.

“The Saudi Green Initiative (SGI) aims to increase waste diversion from landfills to 94% by 2035, signaling a significant shift towards sustainable waste management (Saudi Green Initiative).”

The Saudi Investment Recycling Company (SIRC) and the National Center for Waste Management are implementing frameworks to promote circularity in industries such as manufacturing, construction, and retail. This initiative is expected to reduce 4.1 million tons per annum of CO2e emissions while creating a proven waste management model for nationwide implementation by 2035[5]. By significantly cutting emissions, this initiative not only mitigates environmental harm but also paves the way for a sustainable waste management framework that can be replicated across the Kingdom by 2035.

Key Strategies for Businesses to Adopt Circular Economy Practices

1.     Sustainable Product Design: Most of the product's environmental impact is determined during the design phase, making it essential to minimize waste at this early stage. Companies can integrate eco-friendly materials, design for recyclability, and minimize resource use. For example, the Saudi Basic Industries Corporation (SABIC), a leading global chemical company, has achieved a significant milestone in its innovative project to produce certified circular polymers using feedstock derived from mixed plastic waste[6].

2.     Resource Efficiency and Waste Reduction: Industrial symbiosis—where waste from one business becomes raw material for another—is gaining traction. NEOM, Saudi Arabia’s futuristic city, incorporates circular economy in their low carbon sustainable construction by repurposing materials from excavation and infrastructure projects[7].

3.     Extended Producer Responsibility (EPR): Businesses should take accountability for their products’ end-of-life. The Ministry of Environment, Water, and Agriculture (MEWA) is rolling out policies that encourage manufacturers to establish take-back programs for used products and packaging.

4.     Recycling and Upcycling Initiatives: The Kingdom aims to divert 82% of all types of waste from landfill by 2035, with the help of recycling, reusing and waste-to-energy initiatives of SIRC[8]. It presents great opportunities for businesses to invest in advanced recycling technologies. Throughout the Middle East, several startups have emerged, dedicated to assisting individuals and businesses in adopting recycling practices. Companies like RecycloBekia are addressing e-waste challenges by refurbishing electronic components rather than disposing of them[9].

5.     Waste -to-Energy Solutions: Saudi Arabia is investing in waste-to-energy plants, which converts municipal waste into renewable energy. Businesses can collaborate with such projects to divert waste streams and support cleaner energy production. Saudi Investment Recycling Company (SIRC) will remain instrumental in supporting Saudi Arabia’s goal of achieving 3GW of waste-to-energy capacity by 2030[10].

By embedding sustainability into operations, from product design to waste management, companies can contribute to Vision 2030’s environmental goals while unlocking new economic potential.

[1] https://datatopics.worldbank.org/what-a-waste/trends_in_solid_waste_management.html

[2] https://www.unep.org/resources/global-waste-management-outlook-2024

[3] https://article.scholarena.com/A-Review-of-Municipal-Solid-Waste.pdf

[4] Ministry of Environment, Water, and Agriculture's 2023 annual report

[5] https://www.sgi.gov.sa/sgi-initiatives/

[6] https://www.sabic.com/en/sustainability/circular-economy

[7] https://www.neom.com/en-us/our-business/sectors/design-and-construction

[8] https://www.pif.gov.sa/en/news-and-insights/news-network/2023/saudi-investment-recycling-company-aims-to-drive-the-circular-economy/

[9] https://recyclobekia.com/

[10] https://www.trade.gov/country-commercial-guides/saudi-arabia-waste-management