Saudi paper waste market offers high-return investment opportunities – Industry experts

SAUDI ARABIA – Saudi Arabia’s recycling sector presents significant investment potential, with nearly 3 million tonnes of paper waste generated annually, experts say.

The Arabian reports that despite the large volumes, only around 50 percent of wastepaper is currently recycled, highlighting untapped opportunities for investors.

Industry players pointed out that the market remains largely underutilized, with intermediaries dominating transactions.

Brokers typically purchase wastepaper from factories at low rates of SR500–SR800 (US$133–US$213) per tonne and resell it to recycling plants at a significant markup.

Recycling facilities then process and sell the recycled paper at SR3,500–SR3,800 per tonne, capturing most of the value added in the supply chain.

The dominance of brokers is driven by the limited number of recycling plants and the logistical challenge of handling small quantities.

Factories producing just one to four tonnes of waste monthly often cannot deal directly with recyclers, leaving brokers to consolidate and transport the materials.

Abdulaziz Al-Malki, owner of Richel Paper Factory, highlighted the practical challenges, noting that storage and disposal of waste can become a burden, leading factories to sell it to any willing collector.

Growing paper consumption, the expansion of production facilities, and the increasing volume of waste underscore the sector’s appeal as an investment opportunity.

“The waste market is active, and some participants derive clear income from it,” Al-Malki noted.

He emphasized that while most current operators are non-Saudis, the opportunity is open to new entrants who can streamline processes and connect factories directly with recyclers.

Sami Al-Saffran, vice chairman of MAF, stressed the broader potential of the recycling sector in achieving Saudi Arabia’s circular economy goals.

Citing National Center for Waste Management data, he noted that the Kingdom aims to divert 90 percent of waste from landfills and achieve a 79 percent recycling rate by 2040.

Achieving these targets requires strategic investments in recycling infrastructure, estimated at SR750 billion, which could generate over 76,000 jobs, contribute SR650 billion to GDP, create 500 new investment opportunities, and establish 900 processing facilities.

Talal Al-Nouri, general manager of Advanced International Industries, confirmed the market’s strong demand, explaining that his company purchases large quantities of paper monthly from recycling plants at SR3,500–SR3,800 per tonne to produce cartons.

He noted that direct dealings with recycling factories are rare, with brokers handling most transactions, and emphasized the need for more specialized investments in waste management.

Experts agree that the combination of rising waste volumes, strong industrial demand, and the current broker-heavy market structure makes Saudi Arabia’s paper recycling sector a high-return, untapped opportunity for investors who can introduce efficiency and direct channels.

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