Saudi Arabia targets US$10B in recycling investments by 2035 with new licensing framework

SAUDI ARABIA – Saudi Arabia is targeting up to SAR40 billion (US$10.7 billion) in private investment into its recycling industry by 2035 following the launch of a national licensing framework designed to formalize waste recycling as a standalone industrial sector.

Unveiled by the Ministry of Industry and Mineral Resources, the new framework introduces eight licensed recycling activity streams alongside an industrial permitting guide, aimed at accelerating waste-to-value development across the Kingdom.

The initiative aligns with Vision 2030, the National Industrial Strategy and the national waste management master plan, according to a statement from the Ministry.

By integrating recycling into the formal industrial licensing system, the government is seeking to provide regulatory clarity, unlock private capital and scale domestic recycling capacity.

The program targets the recovery of 4.2 million tonnes of recyclable materials by 2035 and is being implemented in coordination with the National Centre for Waste Management (MWAN), the Ministry of Environment, Water and Agriculture, and the Ministry of Municipal and Rural Affairs and Housing.

The eight licensed activities under the new framework cover the full spectrum of waste recovery and treatment.

These include organic compost production; reuse of municipal solid waste; reuse of hazardous and non-hazardous industrial waste; recycling of oils and petroleum waste; municipal waste disposal through landfill or waste-to-energy incineration; sorting and processing of metal scrap and waste for use as raw materials; and preparation of metal scrap and waste for industrial feedstock.

The Ministry said more than 235 companies are expected to benefit from the new regulatory regime, including around 125 recycling firms, 90 sorting companies and 20 treatment operators.

Officials noted that clearer licensing pathways are intended to reduce barriers to entry, encourage investment in advanced technologies and improve overall environmental performance across the sector.

At the launch event, industrial licences were awarded to five companies active in the recycling and waste management space: TerraFuel Environmental Services, WASCO Waste Collection & Recycling, Edama Organic Solutions, Creative Recycling World Company and Green City International Trading.

The licences are expected to enable these firms to expand operations and invest in new processing capacity.

The move comes as Saudi Arabia steps up efforts to reduce landfill dependency, increase material recovery rates and build local circular economy capabilities.

Industry observers say the framework could also support downstream manufacturing by securing reliable supplies of recycled raw materials, particularly metals and fuels, while creating new jobs and investment opportunities.

As the Kingdom continues to diversify its economy, the recycling sector is increasingly being positioned not just as an environmental necessity, but as an emerging industrial pillar capable of attracting long-term capital and supporting sustainable growth.

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