The Gulf Cooperation Council (GCC) could become a pivotal hub for circular plastics as demand for recycled materials is set to outstrip supply by up to 35 million tons by 2030, according to a recent report by KAPSARC and Strategy& Middle East, part of the PwC network.
Analysts estimate that the region would need to invest between $12 billion and $25 billion in recycling infrastructure by 2045 to capture this opportunity.
Global demand for recycled plastics is currently growing at 8% annually, more than triple the 2% growth rate of virgin plastics. Yet less than 70% of this demand is being met. GCC nations generate approximately 10 million tons of plastic waste per year, but only 10% is recycled—a figure that mirrors the global average but lags behind recycling leaders like China and other OECD countries.
Chemical recycling, particularly pyrolysis, is emerging as a viable solution for the GCC. Modelling from KAPSARC and Strategy& indicates that chemical recycling plants in the region can achieve profitability even amid fluctuating feedstock prices, provided that recycled plastics command a premium over virgin alternatives.
Jayanth Mantri, Principal at Strategy& Middle East, emphasized that integrating chemical recycling with existing infrastructure and exploiting competitive energy costs could maximize economic multipliers and spur innovation-led growth.
The GCC’s low-cost energy and robust infrastructure make it an attractive base for scaling recycling solutions. Success will depend on securing feedstock, regulatory certainty, and fostering innovation. Key steps include establishing trade corridors with Asia, Africa, and Europe, upgrading port and logistics infrastructure, and enhancing traceability systems.
Domestic regulatory reforms are also crucial. Extended producer responsibility schemes, recycled content mandates, and harmonized standards across GCC nations can accelerate adoption. Investment in smart sorting technologies, blockchain-enabled traceability, and chemical recycling processes, supported by government co-funding and consumer incentives, will be essential to realize the circular plastics vision.
The report highlights the potential for sovereign wealth funds, public-private partnerships, and risk mitigation mechanisms to mobilize capital and attract global players to the region.
