An employee sorts recyclable plastics at a warehouse and sorting facility, in Dubai, on March 7. Reuters
An employee sorts recyclable plastics at a warehouse and sorting facility, in Dubai, on March 7. Reuters
An employee sorts recyclable plastics at a warehouse and sorting facility, in Dubai, on March 7. Reuters
An employee sorts recyclable plastics at a warehouse and sorting facility, in Dubai, on March 7. Reuters


The UAE is on its way to becoming a hub for plastic recycling


Maryam Al Mansoori
Maryam Al Mansoori
  • English
  • Arabic

April 11, 2023

Removing plastic from the environment has become an increasingly challenging task. Globally, only 9 per cent of plastic waste is recycled while 22 per cent is mismanaged every year, according to a report by the Organisation for Economic Co-operation and Development (OECD).

The accumulation of plastic waste in landfills and oceans is causing severe environmental problems, including harm to wildlife and ecosystems. It is crucial to find innovative solutions to reduce plastic production and increase recycling rates.

Over the years, several South-east Asian countries have stopped purchasing plastic waste. When China stopped buying the world’s discarded plastics in 2017, it threw markets into turmoil. With volumes increasing every year, this decision forced the global recycling industry to rethink its organisation and find new outlets for plastic waste. Although China's decision in particular was initially regarded as a challenge, it was also a great opportunity for the recycling sector in other countries such as the UAE.

Bales of aluminum collected to be recycled at Bee’ah’s waste recovery facility at the Sharjah Landfill Company. The National
Bales of aluminum collected to be recycled at Bee’ah’s waste recovery facility at the Sharjah Landfill Company. The National

The Emirates is in a prime position to become a global recycling hub, and measures are being systematically implemented to achieve this objective. It has taken the lead in creating a framework for Single Use Plastic Policy and implemented a ban on non-biodegradable plastic products.

Recognising the need for disruptive solutions, the UAE government has been supportive in nurturing the launch of the first Plastic Recycling Exchange – an Emirati export to the world. Abu Dhabi has established the Centre for Waste Management to control and co-ordinate all activities related to sustainable waste management. Sharjah, on the other hand, is working towards 100 per cent landfill diversion targets set for the emirate.

As we approach Cop28, the UAE’s plastics recycling sector has been developing dynamically. A recycling plant that can handle 12,000 tonnes of polyethylene terephthalate (PET) a year has been earmarked for Abu Dhabi. In line with the UAE’s efforts to reduce plastic pollution and boost trade through the export of recycled materials, the plant will recycle PET, a plastic material that is used in food packaging, such as plastic water bottles. The 40,000 square metre facility in Abu Dhabi could create 100 jobs and avoid the emission of 18,000 metric tonnes of carbon dioxide annually when at full operating capacity.

The development is in line with the Ministry of Industry and Advanced Technology’s recent decree regulating the trade of recycled plastic water bottles. It aims to encourage the manufacturing of water bottles using recycled plastic in line with top public health and food safety standards. This is projected to reduce and avoid 50,000 metric tonnes of carbon dioxide emissions, enhance the national in-country value by Dh150 million ($40.8 million) annually, and create more than 1,000 jobs.

Thanks to investments and a favourable regulatory environment, the UAE is on its way to become a hub for plastic recycling by taking advantage of both China’s decision and the government’s support of a range of initiatives including recycling technologies, and improving the waste management infrastructure.

With its strategic location, advanced infrastructure, and commitment to sustainability, the UAE is attracting investments from international recycling companies and positioning itself as a leader in the circular economy. To move forward, the plastic recycling industry must be scaled up even further on all fronts to achieve a circular economy for plastics in the Emirates.

First, collection and sorting technologies play an important role in ensuring increased efficiency and performance of a properly functioning waste-management system. Although the advancements in recycling and sorting technologies have greatly improved in the past years, more investments, as well as research and development, are needed to continuously enhance the quality of recycled material.

Second, we must develop a collaborative mindset towards plastic recycling to create a strong environment for green financing. The OECD had said that “trade can provide potential opportunities towards a global circular economy by channelling waste and materials to destinations where there is comparative advantage in sorting and processing these materials”.

Rebound Plastic Exchange allows buyers and sellers to efficiently trade plastic with trust and confidence, while increasing the efficiency of recycling plastic at scale. Ultimately, this delivers positive economic impacts to the recycling industry, and helps reduce the impact of plastic pollution on our planet.

The UAE’s sustainability targets can be met only if we reach beyond the low-hanging fruit. Individuals and consumer behaviour form the foundation of an entire ecosystem. Hence, working towards an advanced plastic recycling ecosystem is a must. A stronger circular economy depends on the successful separation of materials at the point of production. Given that the output is used across industries, mechanical and advanced recycling technologies are complementary and essential.

The UAE is renowned for capacity building and cutting-edge technologies. Now, its industry must re-evaluate its model by accelerating innovations to satisfy the increasing market demand for recycled plastics. The real transformation can be achieved by working collaboratively with all stakeholders and creating a regulatory framework that will foster conditions for sustainable and fully circular plastics recycling.

With data as the basis for all decision-making, Rebound Plastic Exchange has a key role to play while contributing significantly to the UAE's efforts towards sustainable development and helping it establish itself as a key player in the region's circular economy.

GROUPS

Group Gustavo Kuerten
Novak Djokovic (x1)
Alexander Zverev (x3)
Marin Cilic (x5)
John Isner (x8)

Group Lleyton Hewitt
Roger Federer (x2)
Kevin Anderson (x4)
Dominic Thiem (x6)
Kei Nishikori (x7)

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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%3Cp%3EThe%20influx%20of%20talented%20young%20Afghan%20players%20to%20UAE%20cricket%20could%20have%20a%20big%20impact%20on%20the%20fortunes%20of%20both%20countries.%20Here%20are%20three%20Emirates-based%20players%20to%20watch%20out%20for.%0D%3Cbr%3E%20%0D%3Cbr%3E%3Cstrong%3EHassan%20Khan%20Eisakhil%3C%2Fstrong%3E%0D%3Cbr%3EMohammed%20Nabi%20is%20still%20proving%20his%20worth%20at%20the%20top%20level%20but%20there%20is%20another%20reason%20he%20is%20raging%20against%20the%20idea%20of%20retirement.%20If%20the%20allrounder%20hangs%20on%20a%20little%20bit%20longer%2C%20he%20might%20be%20able%20to%20play%20in%20the%20same%20team%20as%20his%20son%2C%20Hassan%20Khan.%20The%20family%20live%20in%20Ajman%20and%20train%20in%20Sharjah.%0D%3Cbr%3E%20%0D%3Cbr%3E%3Cstrong%3EMasood%20Gurbaz%3C%2Fstrong%3E%0D%3Cbr%3EThe%20opening%20batter%2C%20who%20trains%20at%20Sharjah%20Cricket%20Academy%2C%20is%20another%20player%20who%20is%20a%20part%20of%20a%20famous%20family.%20His%20brother%2C%20Rahmanullah%2C%20was%20an%20IPL%20winner%20with%20Kolkata%20Knight%20Riders%2C%20and%20opens%20the%20batting%20with%20distinction%20for%20Afghanistan.%0D%3Cbr%3E%20%0D%3Cbr%3E%3Cstrong%3EOmid%20Rahman%3C%2Fstrong%3E%0D%3Cbr%3EThe%20fast%20bowler%20became%20a%20pioneer%20earlier%20this%20year%20when%20he%20became%20the%20first%20Afghan%20to%20represent%20the%20UAE.%20He%20showed%20great%20promise%20in%20doing%20so%2C%20too%2C%20playing%20a%20key%20role%20in%20the%20senior%20team%E2%80%99s%20qualification%20for%20the%20Asia%20Cup%20in%20Muscat%20recently.%0D%3Cbr%3E%3C%2Fp%3E%0A
What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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'Cheb%20Khaled'
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Updated: April 11, 2023, 1:33 PM