Saudi Arabia’s US$26.6M Namaa Fund targets circular economy, food waste reduction

SAUDI ARABIA – Saudi Arabia’s Ministry of Environment, Water and Agriculture has launched the Namaa Endowment Fund with an initial SAR 100 million (US$26.6 million) contribution from the General Authority for Awqaf, aiming to advance environmental sustainability and circular economy goals under Vision 2030.

The fund represents a new institutional endowment model designed to support economic and social development while increasing the non-profit sector’s contribution to GDP.

Developed in partnership with the General Authority for Awqaf, the Capital Market Authority, and SNB Capital, Namaa will finance initiatives through a licensed digital platform with strict financial governance.

Circular Economy at the Core

A primary focus of the Namaa Fund is advancing the circular economy, a concept directly tied to packaging sustainability.

The fund will support initiatives in water conservation, afforestation, biodiversity protection, and critically, reducing food loss and waste through better resource management.

By financing non-profit institutions including Reef, Morooj, and Saqaya, the fund targets systemic improvements in how resources flow through the economy.

The circular economy focus aligns with Saudi Arabia’s broader waste management ambitions.

The Kingdom aims to divert 90 percent of waste from landfill by 2040, creating significant opportunities for packaging recyclers and sustainable material innovators.

With the waste sector offering more than 500 investment opportunities projected to reach hundreds of billions of riyals over the next 25 years, the packaging industry stands to benefit directly.

Modern Endowment Meets Sustainability Goals

Emad Al Kharashi, Governor of the General Authority for Awqaf, explained that the fund merges the Kingdom’s deep-rooted endowment traditions with modern investment instruments to foster sustainable growth and protect natural resources.

The initial US$26.6 million contribution serves as a foundation for a sustainable endowment model that will generate ongoing returns for environmental initiatives.

Minister of Environment, Water and Agriculture Abdulrahman Al-Fadhli emphasized that the fund represents a strategic step toward achieving economic and social development targets while boosting the non-profit sector’s contribution to the national economy.

Building a Multi-Layered Sustainability Ecosystem

The Namaa Endowment Fund forms part of Saudi Arabia’s broader sustainability push under Vision 2030.

The Saudi Green Initiative has already rehabilitated more than 500,000 hectares of degraded land and planted over 151 million trees, with protected areas expanding to about 18 percent of the Kingdom.

In the water sector, Saudi Arabia now reuses about 33 percent of treated water, supporting environmental sustainability and resource efficiency.

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