Saudi Arabia’s bold recycling plan will see it become a world-leader, experts believe

Saudi Arabia is seeking to make the most of the industry. Shutterstock
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Updated 16 September 2024
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Saudi Arabia’s bold recycling plan will see it become a world-leader, experts believe

  • This initiative is anticipated to contribute approximately SR120 billion ($31.99 billion) to Saudi Arabia’s gross domestic product

RIYADH: In an era marked by growing environmental concerns and the pursuit of sustainable development, recycling has emerged as a crucial driver of economic prosperity for countries worldwide.

Beyond its environmental benefits, recycling holds significant economic advantages, fostering job creation, stimulating local industries, and bolstering long-term economic stability.

Saudi Arabia is seeking to make the most of this industry, and in January the Kingdom’s Ministry of Environment announced a comprehensive plan to recycle a significant portion – up to 95 percent – of the country’s waste. 

This initiative is anticipated to contribute approximately SR120 billion ($31.99 billion) to Saudi Arabia’s gross domestic product, and aims to generate over 100,000 employment opportunities for the Kingdom’s nationals. 

When fully implemented, the plan will see the recycling of around 100 million tonnes of waste annually, showcasing the nation’s commitment to sustainability.

The program aligns with Saudi Arabia’s broader sustainable development goals, emphasizing the implementation of well-designed strategies and processes across various sectors, including the National Environment Strategy.

Thinking behind the plan

According to Julien Vermersch, partner at Bain and Co. Middle East, the Kingdom’s ambition to divert 90 percent of its waste away from landfills by 2040 is not only going to be achieved via recycling.

“Whilst increasing circularity and materials recovery will certainly be a very significant lever – in particular because today only about 5 percent of the waste is recycled – this cannot be the only lever,” Vermersch told Arab News.

“Some waste streams, e.g. specific hazardous waste, cannot easily be recycled and in some cases incineration with heat recovery, i.e. waste-to-energy, will remain a better option,” he added.

There are more than economic factors at play in this plan, Vermersch explained, pointing to the rapid urbanization and population growth in the Kingdom putting existing infrastructure under significant pressure.

“All key urban centers are struggling with landfill saturation and whilst it is possible to open new sites or expand existing ones, this trend will rapidly become unsustainable as urban developments continue. Then landfills pose a real environmental threat,” he said.

The Bain and Co. partner shed light on the fact that despite some advancements in this area, the effective management of leachate remains a persistent challenge in urban and industrial areas, as evidenced by numerous reported instances of soil and groundwater contamination over time.

“Additionally, in the absence of gas capture systems, the decomposition of organic wastes in landfills is a major source of methane emissions  – estimated to be around 30-50 Mtpa (million tonnes per annum) of CO2 equivalent emissions, which is 5-7 percent of the total greenhouse emissions of the Kingdom,” Vermersch said.

He further noted that the Kingdom’s landfill diversion target is consistent with what is already achieved in a number of European countries or select advanced Asian countries.

“The ambition to get there by 2040 however is quite bold. For these countries that have made the transition, getting to 90 percent landfill diversion has been a 25-plus years journey requiring stringent regulations, public engagement to build awareness and support and massive capital investments in new waste management infrastructure,” the partner clarified.

Yves Takchi, principal and global co-lead for Arthur D. Little Waste, Water and Circularity Competence Center, told Arab News that according to the National Center for Waste Management the overall ambition is similar across all waste streams, with the combined landfill diversion targets close to 90 percent for all types.

“To achieve this diversion rate, Saudi Arabia has put a great emphasis on recycling, but is also aiming to deploy a variety of other techniques such as waste-to-energy to complement it. The landfill diversion targets that the Kingdom of Saudi Arabia has embraced are rooted in an ambitious and yet scientific approach to transform the waste management sector in the country,” Takchi said.

He went on to explain that at a strategic level, countries have three high level options to manage the waste that is generated by its economy.

“Firstly, most economies with a nascent waste management sector treat waste management as a sanitation service and focus on reducing expenditures while safeguarding public health. This often means that they heavily rely on sanitary landfilling as a cheap and effective method to dispose of waste. The second approach is adopted by countries that want to minimize the waste that goes to landfills while still maintaining convenience and ease of implementation,” said Takchi.

He added that the usual objectives in this scenario are to avoid landfilling in recognition of its environmental damage and unnecessary space usage, as well as to leverage waste to fuel the increasingly energy demanding economies.

The Arthur D. Little official also said that countries in this situation usually end up relying heavily on recovery technologies such as waste-to-energy and refuse-derived fuel, which although have a higher cost and only marginal improvements in environmental performance, are much easier to put in place and rely much less on citizen participation and behavioral change.

Takchi argued that world-leaders in waste management follow the third approach. 

“These countries have managed to put in place systems that strive toward a circular economy approach – as opposed to the linear use-throw-dump model. Their waste systems follow the waste hierarchy, which maximizes first the reduction and reuse of waste materials, then the usage of recycling as the next best alternative, with waste to energy and energy recovery transitional and residual treatments before landfilling,” he said.

With regards to the Kingdom, Takchi believes that Saudi Arabia has “rightly understood” that it is in a unique position to leapfrog from its current model to the more advanced, ambitious model. 

“The country as a whole is embarking on a massive transformation journey embodied by Vision 2030, which has paved the way for massive investments in infrastructure across sectors and has demonstrated that the Saudi people are remarkably adaptable and embracing of positive change,” he said. 

The benefits of this model include environmental protection of land, air and water, a growth in local socio-economic value by increasing investments in infrastructure and creating jobs, and enabling self-sufficiency in materials by keeping scarce resources – like rare metals and minerals – flowing within the economy, which improves the trade balance.

Initiatives implemented to support recycling goals

According to Takchi, the Kingdom has galvanized the sector through the creation of two separate entities – Saudi Investment Recycling Co., and the National Center for Waste Management, also known as MWAN.

The former was established by the Public Investment Fund to act as a sector champion, unlocking access to capital and investing in sector-building investments in partnership with local and world leading companies.

MWAN created a unified sector regulator that consolidated the previously fragmented regulatory ecosystem and took the lead on putting in place the ambitious public-sector led efforts to enable the sector’s transformation.

“We have already seen developments from both entities, with SIRC having put in place recycling initiatives and multiple massive investments announced  – including mega scale infrastructure for Riyadh City. On the other hand, MWAN has already put in place the unified Waste Management Law and its Implementing Regulations, the new regulatory framework for the sector that has finally resolved fragmentation of regulation challenges,” Takchi added.

The Global Co-Lead for Arthur D. Little Waste also said that MWAN has also begun to improve the compliance environment, having embarked on a large-scale master-planning exercise across the different regions in Saudi Arabia. 

It has also announced multiple sector-enabling initiatives aimed at preventing waste at the source, incentivizing resource recovery and maximizing diversion from landfills and including the launch of hundreds of investment opportunities.

“The key success factors to accelerate this paradigm shift will be to find the optimal balance of planning and action and to maintain collaboration and alignment behind the national agenda of an extremely complex ecosystem of many actors, including regulators, municipalities, royal commissions, investors, operators, commercial and industrial players and even citizens,” Takchi said.

Key government support

Strong government backing and regulatory support are essential for the successful transformation of the waste management sector.

Bain and Co. Middle East’s Vermersch highlighted the costly nature of the transition from landfilling to recycling, incineration or waste-to-energy.

“When you look at countries that have very low landfilling rates today, they have introduced over 30 years ago either landfill taxes that have risen to significant levels and/or very stringent landfill restrictions/bans,” he added.

That said, the partner underlined that in order to make this transition possible, an effective system to sort the waste is essential – which typically relies on segregation at the source and requires municipalities to step in.

“As we can see with the example of Riyadh that has been piloting a multi-bin system in recent years, it is not enough to just roll out the new collection infrastructure. It takes awareness campaigns and meaningful community engagements to educate residents and businesses on the importance of sorting waste and on how to use the new system effectively,” Vermersch said.

Takchi said that like most complex and ambitious transformation initiatives that fall within the framework of Vision 2030, the government has a crucial role to play to ensure success for the waste management sector, and that was the impetus behind the creation of MWAN.

“Such a massive leapfrog requires a clear national level direction of travel and strategy to be clear to all actors in the sector. That will allow us to fully synergize efforts and accelerate change. The government also has an important part to play in laying down the necessary enablers to unlock private sector investment and ensure the successful deployment of infrastructure and services,” he said.


Riyadh Air signs 11 deals to boost global reach and promote Saudi culture and hospitality

Updated 01 May 2025
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Riyadh Air signs 11 deals to boost global reach and promote Saudi culture and hospitality

  • The airline, which is preparing to begin operations, plans to connect with more than 100 cities by 2030 and contribute $20bn to the Kingdom’s economy between now and then
  • Senior VP Osamah Al-Nuaiser said the deals will help deliver exceptional travel experiences across Europe, Africa, the Middle East, Asia, Australia and New Zealand

JEDDAH: New Saudi airline Riyadh Air signed 11 strategic agreements this week it said will expand its global footprint, elevate the travel experience, and help promote the Kingdom’s culture and hospitality.

The deals, finalized during the Arabian Travel Market in Dubai, which began on Monday and concluded on Thursday, involve sales and distribution service providers in more than 125 countries.

Riyadh Air, which is owned by Saudi Arabia’s Public Investment Fund, aims to connect with more than 100 international cities by 2030, and contribute more than $20 billion to the Kingdom’s economy between now and then, the Saudi Press Agency reported on Thursday.

The airline said it plans to enhance the travel experience by leveraging digital technologies to streamline bookings and airport procedures, thereby catering to the country’s young, tech-savvy population, as previously highlighted by CEO Tony Douglas.

Osamah Al-Nuaiser, senior vice president of marketing and corporate communications at Riyadh Air, said the agreements signed this week reflect the airline’s commitment to becoming a global leader in aviation.

They are designed to build long-term, mutually beneficial relationships that help deliver exceptional travel experiences across Europe, Africa, the Middle East, Asia, Australia and New Zealand, he added.

As authorities in the Kingdom continue to invest billions into massive development projects as they work to diversify the national economy and reduce its reliance on hydrocarbons, one of their goals is to gain a larger share of the global travel market, including business travel.

Riyadh Air received approval from the Kingdom’s General Authority of Civil Aviation in April to begin flight operations. It was granted its Air Operator Certificate after fulfilling all regulatory, safety, and operational requirements, marking a key milestone in the run-up to the official launch of commercial flights.

Riyadh Air said the flexibility offered by the adoption of the most modern technologies, free from the constraints of legacy systems, will enable the airline to innovate with agility and offer seamless booking, distribution and other services across its global network.

Douglas said recently that the startup is ready to purchase Boeing aircraft originally ordered by Chinese airlines, should they become available as a result of the escalating US-China trade dispute.

The fledgling airline has also placed major orders of its own with manufacturers, including a deal in October last year for 60 narrow-body A321-family jets from Airbus, and another in March 2023 for up to 72 Boeing 787 Dreamliners.


PIF announces pricing of $1.25 billion international sukuk offering

Updated 01 May 2025
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PIF announces pricing of $1.25 billion international sukuk offering

  • The sukuk will be listed on the London Stock Exchange’s International Securities Market
  • PIF’s Ahmed Alrobayan said: ‘The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile’

RIYADH: The Public Investment Fund on Thursday announced the pricing of a $1.25 billion sukuk offering, with the proceeds of the dollar-denominated offering to be used for PIF’s general corporate purposes.
The seven-year sukuk was more than 6.5 times oversubscribed, with orders exceeding $9 billion, according to a media statement.
The sukuk will be listed on the London Stock Exchange’s International Securities Market as part of PIF’s international sukuk issuance program.
Ahmed Alrobayan, head of public markets, global capital finance, at PIF, said: “The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile, along with its role as a key driver of Saudi Arabia’s economic transformation.”
The transaction represents a continuation of the established and diversified financing strategy, which draws strong support from international investors, Alrobayan said.
PIF’s long-term capital-raising strategy includes a diverse range of instruments, including sukuk and bond programs.
PIF has completed its inaugural murabaha credit facility since earlier this year, and last August renewed a revolving credit facility.
PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.


Qassim region sees 25% growth in business sector over 7 years: Ministry of Commerce

Updated 01 May 2025
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Qassim region sees 25% growth in business sector over 7 years: Ministry of Commerce

JEDDAH: Saudi Arabia’s Qassim region has experienced 25 percent growth in its business sector over the past seven years, reflecting increased economic activity and contributing to the Kingdom’s goal of balanced development.

The number of commercial records in the central region rose from 68,000 in 2018 to 85,000 by the end of the first quarter of this year, the Ministry of Commerce reported in a post on its official X account.

The latest figures showed that the Qassim region saw 1,342 e-commerce registrations, contributing to the overall 6 percent year-on-year increase in the sector.

The increase comes as the Kingdom pushes ahead with its economic diversification strategy, aiming to increase the private sector’s share of the gross domestic product from 40 percent to 65 percent by 2030.

This effort is reflected in a 60 percent increase in commercial registrations in 2024 across the Kingdom, with a total of 521,969 records issued, according to the Ministry of Commerce.

Business registrations continued to rise in early 2025, with 154,638 commercial records issued in the first quarter alone, representing a 48 percent year-on-year increase.

The ministry report highlighted “critical sectors” for the Kingdom include technology, tourism, and entertainment, as well as research and development.

The report added: “These sectors offer businesses significant opportunities to grow and expand partnerships.”

According to the Ministry of Commerce, a commercial registration certificate verifies a business’s official status within Saudi Arabia. These records are essential for operating in the Kingdom, as they are required to open a bank account, hire employees, sign contracts, and conduct other business activities.

The data also showed that 71 percent of the total commercial records issued were concentrated in three key regions: Riyadh, Makkah, and the Eastern Province.

This surge in registrations aligns with recent reforms to Saudi Arabia’s business registration system, including the introduction of the new Commercial Register Law and Trade Names Law.

Subsidiary registers have also been abolished, meaning that one commercial register now covers all businesses, and companies no longer need to specify the city of registration, as a single enrollment is now valid nationwide.

The bulletin also revealed that 45 percent of the total commercial records issued to institutions are owned by women.

In an interview with Arab News in April on the sidelines of the Human Capability Initiative held in the capital, Zeger Degraeve, dean of Prince Mohammed Bin Salman College of Business & Entrepreneurship, emphasized that ensuring balanced regional development is crucial as Saudi Arabia accelerates its economic diversification efforts under Vision 2030.

The rise in business registrations in Qassim is aligning with its growing industrial sector, supported by its rich mineral resources, which are a key focus of Saudi Arabia’s Vision 2030 diversification plan.

The region’s SR122 billion ($32.5 billion) in untapped mineral wealth, including significant deposits of gold, copper, zinc, and phosphate, contributes to the area’s industrial development, which has seen substantial growth.


Closing Bell: Saudi main index closes in red at 11,543  

Updated 01 May 2025
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Closing Bell: Saudi main index closes in red at 11,543  

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 127.90 points, or 1.10 percent, to close at 11,543.67.  

The total trading turnover of the benchmark index was SR5.09 billion ($1.35 billion), as 52 stocks advanced, while 193 retreated.  

The MSCI Tadawul Index decreased by 16.97 points, or 1.14 percent, to close at 1,471.91. 

The Kingdom’s parallel market Nomu also dipped, losing 147.4 points, or 0.52 percent, to close at 28,129.77. This came as 32 stocks rose, while 41 fell. 

The best-performing stock on the main index was Saudi Printing and Packaging Co., with its share price surging by 6.18 percent to SR13.06.  

Saudi Cement Co. saw the steepest decline on the main index in Thursday’s session, with its share price slipping 5.75 percent to SR43.40.  

In a bourse filing, Banque Saudi Fransi announced that it has completed its $650 million offering of US dollar-denominated Additional Tier 1 capital notes.  

The issuance, conducted under the bank’s Additional Tier 1 Capital Note Programme, was offered to eligible investors in Saudi Arabia and internationally, with settlement set for May 7.  

The notes were issued at a return of 6.375 percent per annum and are perpetual in nature, with a call option exercisable after six years. A total of 3,250 notes were issued, each with a par value of $200,000. 

According to the bank, the instruments may be redeemed prior to the scheduled call date under certain conditions outlined in the base offering circular.  

The notes will be listed on the International Securities Market of the London Stock Exchange and were offered in reliance on Regulation S under the US Securities Act of 1933, as amended. 

The bank’s share price traded 0.54 percent lower on the main market to reach SR18.30.

Halwani Bros. Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR11.51 million, a 4.58 percent decline compared to the previous quarter last year.  

The company attributed the decrease to higher general and administrative expenses, as well as increased selling and distribution costs. It also said that this was due to an increase in other income as a result of the reversal of provisions that are no longer needed.  

Halwani Bros. Co’s share price traded 0.52 percent lower on the main market to reach SR47.95.  

In the first quarter of 2025, Fourth Milling Co’s net profit rose 25.154 percent quarter on quarter to SR52.6 million, according to a filing on the stock exchange.  

The group attributed the increase to sales growing by 2 percent, amounting to an increase of SR3.4 million, and zakat and tax payments decreasing by SR1.4 million.  

The company’s share price traded 0.25 percent lower on the main market to reach SR3.97.  

Saudi Steel Pipe Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR69 million, an 81.57 percent surge compared to the previous quarter.  

The company attributed the increase to higher volume, improved efficiency and product mix of products sold, and administrative expenses decreased to SR14 million in the first quarter 2025 from SR19 million in the fourth 2024. 

The company’s share price traded 0.18 percent higher on the main market to reach SR56.10. 


Arab Monetary Fund reports 4.3% annual gains across region’s stock markets

Updated 01 May 2025
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Arab Monetary Fund reports 4.3% annual gains across region’s stock markets

RIYADH: Stock markets across the Middle East and North Africa began 2025 on a strong note, with the Arab Monetary Fund Composite Index rising 4.37 percent year over year, according to a new report.

On a quarterly basis, the index — which tracks the performance of 16 Arab stock markets— posted a 1.55 percent increase, reflecting investor confidence amid shifting global monetary policy and geopolitical headwinds.

The figures were released as part of the AMF’s quarterly bulletin, which noted that sectors such as banking, real estate, and basic materials, as well as transportation, and financial services performed well, contributing to gains in several markets. 

The strong performance comes amid reforms across Arab markets to deepen liquidity and attract foreign investment. Saudi Arabia’s Capital Market Authority is advancing its 2024-2026 strategy to elevate its global market position and enhance investor safeguards, while Abu Dhabi Securities Exchange recently launched the “New ADX Group”— a market infrastructure overhaul aligned with the emirate’s long-term economic vision. 

In its report, the AMF said: “This performance unfolded amid a tightening global monetary policy environment during the first quarter of 2025, as most central banks, both globally and across the Arab region, adopted a cautious approach to monetary easing following the US Federal Reserve’s decision to keep interest rates steady.”

The fund highlighted that while some Arab exchanges saw notable gains, others experienced declines. 

Casablanca Stock Exchange led the region with a 20.19 percent rise in its index, driven by strong performances in the banking and telecommunications sectors. 

Tunisia and Kuwait followed with increases of 10.25 percent and 9.66 percent, respectively, while Egyptian Exchange and Amman Stock Exchange posted gains of 7.68 percent and 6.12 percent.

However, not all markets fared as well. Saudi Stock Exchange, the largest in the region by market capitalization, saw a slight decline of 0.10 percent, while Abu Dhabi Securities Market and Palestine Exchange recorded drops of 0.53 percent and 0.46 percent, respectively. 

Beirut Stock Exchange faced the steepest decline, plummeting by 12.69 percent, attributed to ongoing economic challenges in Lebanon.

Despite Lebanon’s ongoing economic crisis since 2019, recent data from the Central Administration of Statistics shows signs of easing inflationary pressures. 

The annual inflation rate dropped sharply to 14.2 percent in March, down from 70.36 percent a year earlier — a notable improvement attributed largely to the stabilization of the Lebanese pound, which has held steady at approximately 89,500 Lebanese pounds per US dollar since mid-2023.

Casablanca Stock Exchange led the rises across the region. Shutterstock

Market capitalization and trading activity 

The total market capitalization of Arab stock markets decreased by 1.45 percent in the first quarter of 2025, reaching $4.32 trillion, down by $63.77 billion compared to the last quarter of 2024. 

This decline was primarily due to significant losses in the Abu Dhabi and Saudi markets, which shed $18.23 billion and $75.06 billion, respectively.

In contrast, Casablanca Stock Exchange added $21.26 billion to its market value, while Kuwait Stock Exchange saw an increase of $13.77 billion. 

Trading values also reflected this mixed performance. Total trading value across Arab markets fell by 2.60 percent to $250.53 billion.  

Kuwait Stock Exchange stood out with a 45.09 percent surge in trading value, reaching $21.95 billion. This strong performance builds on 2024’s momentum, when 113 out of 142 listed companies reported profits, as highlighted in an Al-Shall Consulting report.

Meanwhile, Abu Dhabi Securities Market saw a 31 percent drop in trading value.

Sectoral performance and global influences 

Global factors played a significant role in shaping market trends, with sectors scuh as insurance, consumer services, and media faced declines. “The cautious monetary policies of most global and Arab central banks, following the US Federal Reserve’s decision to stabilize interest rates, positively impacted lending and financing stability,” the study stated. 

However, it also warned that “the escalation of US trade policies, including new tariffs, has raised concerns about slowing international trade and rising production costs, which could directly affect global growth expectations, inflation rates, and investor confidence.”

Geopolitical tensions and fluctuations in oil prices further influenced market dynamics. “Oil prices experienced significant volatility during the first quarter of 2025 due to escalating geopolitical tensions and increased production from some countries, impacting markets closely tied to oil and affecting liquidity and the performance of the energy sector,” the AMF explained.

Individual market highlights 

Saudi Stock Exchange is the largest in the region by market capitalization. Bloomberg

Saudi Stock Exchange, which accounts for 61.13 percent of the total market capitalization of Arab exchanges, saw its value drop to $2.64 trillion. The media and utilities sectors were among the worst performers, declining by 31 percent and 13 percent, respectively.

Despite the recent dip, Saudi Arabia’s capital markets remain a regional powerhouse.

Speaking at February’s Capital Markets Forum in Riyadh, Saudi Exchange CEO Mohammed Al-Rumaih said:  “2024 was a great year for us. We did more than 55 listings; around 45 in the equity market, 13 on the main market, which doubled compared to 2023, and the rest in the parallel market. It put us as No.1 not just in the region, but globally as the fastest-growing exchange in the world.”

Egyptian Exchange rose by 7.68 percent, with trading volumes surging by 27.28 percent, reflecting renewed investor confidence.  

Kuwait Stock Exchange outperformed other Gulf markets, with its index climbing 9.66 percent, supported by robust activity in the banking sector. 

Casablanca Stock Exchange’s 20.19 percent jump was fueled by gains in electricity, mining, and telecom stocks, with firms like Attijariwafa Bank and Maroc Telecom leading the charge.  

Risks and outlook 

The report cautioned that several risks could destabilize Arab and global markets in the coming months.

“Potential risks include trade-related pressures linked to tariffs, a possible global economic slowdown, rising inflation, fluctuations in oil prices, high debt levels in some Arab economies, and geopolitical tensions,” it stated.

Despite the relative stability of Arab exchanges in the inaugural quarter of 2025, these factors could pose challenges to future performance. 

The AMF also emphasized the importance of continued cooperation among Arab markets to enhance integration and support economic growth in the region. 

“The Fund hopes that these efforts will contribute to developing cooperation and integration among Arab financial markets, serving common interests and promoting economic growth in the Arab region,” the analysis concluded.