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The GCC has the potential to become a global leader in recycled plastics, but only if it invests up to $25 billion in new recycling infrastructure by 2045, according to a new report.
The joint study by the King Abdullah Petroleum Studies and Research Centre (KAPSARC) and Strategy& Middle East, part of the PwC network, found that global demand for recycled plastics is projected to outstrip supply by as much as 35 million tonnes by 2030.
Despite rising demand for recycled materials, only 70 per cent of the global need is currently being met. While GCC countries generate around 10 million tonnes of plastic waste annually, only 10pc is recycled, reused, or recovered.
The report highlights that the region is uniquely positioned to address this shortfall by leveraging its existing strengths in the petrochemical sector.
“With global mechanical recycling still under 10 per cent and pressure mounting from ESG mandates, there’s a growing mismatch between supply and demand,” said Strategy& Middle East partner Devesh Katiyar.
Mr Katiyar
“The GCC is uniquely positioned to bridge this gap by leveraging its petrochemical strengths for circular solutions.”
The study found that a key part of the solution is chemical recycling, particularly a process known as pyrolysis, which is gaining momentum globally. The report models show that chemical recycling plants in the GCC can break even at plastic waste feedstock prices of $240 to $280 per metric tonne due to the region’s low-cost energy.
Mr Mantri
“The economics of chemical recycling are compelling for the GCC, especially when integrated into existing systems and supported by the region’s competitive energy costs,” said Strategy& Middle East principal Jayanth Mantri.
To succeed, the report says the region must focus on three key areas: securing feedstock access, establishing regulatory certainty, and fostering innovation and consumer awareness. This includes building formal plastic waste trade corridors with Asia, Africa, and Europe, as well as accelerating domestic regulatory reforms like extended producer responsibility schemes.
The report also calls for greater investment, suggesting GCC nations use sovereign wealth funds and public-private partnerships to mobilize capital and attract global players.
avinash@gdnmedia.bh
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