By plugging recycling units into existing petrochemical hubs, and leveraging AI, the GCC can scale plastics recycling, while driving economic diversification, Devesh Katiyar, Partner, Strategy& Middle East, tells OGN

With its combination of abundant low-cost energy and strong industrial scale providing a decisive edge, the Gulf Cooperation Council (GCC) is emerging as a pivotal player in the global race to close the widening plastics recycling gap.

This was highlighted in a report called ‘The Circular Opportunity: Scaling Chemical Recycling in the GCC’, by Strategy& Middle East, part of the PwC Network, together with the King Abdullah Petroleum Studies and Research Center (KAPSARC).

With a projected global shortfall of 35 million tonnes in recycled plastics by 2030, the report stresses that the GCC has the potential to close this gap, turning waste into opportunity and building a powerful competitive advantage, the report said.

In an exclusive interview with OGN energy magazine, Devesh Katiyar, Partner, Strategy& Middle East, brings into focus the GCC’s dual advantage—industrial scale and low-cost energy—in scaling chemical recycling.

Below are excerpts from the interview:

The New Plastics Economy report highlights the GCC’s energy advantage in scaling chemical recycling. Can you explain how low-cost energy and petrochemical infrastructure position the region to close the recycled plastics demand–supply gap?

The combination of low energy prices and built-in industrial scale makes the GCC one of the few places that can bridge the growing global shortfall in recycled plastics, and gives it a real edge in making plastic recycling economically viable.

By plugging recycling units into existing petrochemical hubs, the region can turn plastic waste into high-quality recycled feedstock at lower costs, creating a ‘dual-feedstock advantage’ for the GCC region.

Additionally, based on our research jointly with KAPSARC, low industrial electricity and gas prices in the GCC reduce the energy costs of energy-intensive processes like pyrolysis—by up to 75–80 per cent compared to Europe—making recycling plants more viable.

In the future, with the development of technologies related to the electrification of pyrolysis plants along with the upstream recycling value chain, GCC countries can continue to hold a competitive advantage by leveraging the increasing proportion of inherently low-cost renewable energy.

Which technologies offer the greatest promise to increase recycling yields and feedstock transparency in the GCC?

Technologies such as AI sorting and blockchain-based traceability systems are emerging to improve feedstock quality and transparency.

Devesh Katiyar

Chemical recycling technologies, especially thermal and catalytic pyrolysis, are proving valuable for processing mixed or contaminated plastics that mechanical methods can’t handle.

Add to that smart bins and digital waste mapping platforms, and the GCC has a toolkit to scale from small pilots to industrial-grade recycling systems.

Since feedstock availability and quality are key constraints, how realistic is it for the GCC to develop reliable domestic collection systems and import corridors to secure sufficient, high-grade plastic waste?

It’s realistic and necessary. The region already produces around 10 million tonnes of plastic waste annually but recycles just a fraction of it.

With the right investments in sorting infrastructure (such as, AI, blockchain), collection (material recovery facilities), and modern recycling infrastructure, that can change.

At the same time, the GCC’s location, between Asia and Europe, means it can build formal trade routes to bring in high-quality plastic waste from countries like India or Indonesia.

This would require formal agreements and traceable, compliant logistics frameworks aligned with Basel Convention requirements, but with strong port infrastructure and logistics already in place, it’s not a far leap.

How feasible is the creation of formal plastic waste trade corridors with South and Southeast Asia, and what institutional or logistical hurdles must be overcome to implement them effectively?

The GCC is uniquely positioned to become a global hub for circular plastics. With its strategic location, strong port infrastructure, and established trade links, the region is well-suited to import plastic waste from Asia and re-export high-quality recycled materials to Europe.

However, making this a reality will require several enablers. These include trade agreements that comply with the Basel Convention regulations, harmonised customs procedures, and robust digital systems to ensure traceability across borders.

Infrastructure upgrades, particularly at ports and in designated processing zones, will be essential, along with standardised quality checks to maintain feedstock reliability.

Also critical is close coordination with regional partners to reduce political and commercial risks and ensure stable, long-term supply chains.

How do investors and policymakers assess the competitiveness of chemical recycling in the GCC, given feedstock price sensitivity, plant utilisation, and energy costs?

The business case is promising, especially, in the GCC. Plants in the region can break even at lower waste prices thanks to cheap energy and integrated facilities.

Our analysis with KAPSARC shows chemical recycling in the GCC offers competitive product supply cost (breakeven price) if the real price of process-ready waste plastic feedstock is between $240 and $280 per metric tonne, and remain viable even up to $500 per tonne.

But investors are still watching closely.

Feedstock availability and how full these plants can run remain the biggest risks.

If the region can solve those two things—supply and scale—it becomes a very attractive place to invest in circular plastics.

What regulatory reforms, such as EPR schemes, recycled content mandates, or labelling standards, are most urgent to mobilise private capital and technology providers in the region?

Investors want clarity, and the GCC can make progress through several regulatory reforms, which we discuss in our paper with KAPSARC.

As examples, recycled content mandates, especially for packaging and food-grade plastics, could send a strong demand signal.

Design standards that favour mono-materials, transparent labelling, and mandatory EPR schemes with eco-modulated fees can help make recycling more viable.

Harmonised safety and quality standards across the GCC would further reduce risk and encourage capital flow.

Together, these reforms build the market confidence needed to unlock stable private investment and scale up circular solutions.

Are there examples from the EU or China, either in technology, regulation, or partnership models, that the GCC could emulate to accelerate its circular plastics ambition?

The European Union (EU) and China are examples of what is possible when policy and innovation move together.

In Europe, strong regulatory frameworks like plastic taxes, EPR schemes, and design standards have helped boost recycling rates and investment.

China, on the other hand, has focused on national level mandates and rapid infrastructure buildout, which helped it to exceed 30 per cent recycling rates by 2021; about 1.7 times the global average.

The GCC can emulate these examples by adopting blended finance models, strict policy mandates, and regional coordination mechanisms.

What strategies can be adopted to stimulate demand for recycled polymers domestically and globally, including corporate commitments, fiscal incentives, or awareness campaigns?

Stimulating demand for recycled polymers requires a smart blend of policy, market incentives, and public engagement.

Mandating recycled content in products, offering fiscal incentives, and adopting green procurement policies can all help tip the scales.

At the same time, corporate commitments (as seen with global brands such as Unilever, Lego, and Coca-Cola) play a big role in normalising recycled materials in everyday products.

Consumer-facing campaigns and deposit-return schemes can further nudge behaviour, while education remains crucial to building long-term demand.

When both businesses and consumers see value in recycled content, the market starts to sustain itself.

How can GCC governments, industry players, technology providers, and investors coordinate to align standards, mobilise funding, and scale the circular economy effectively?

Scaling a circular economy in the GCC will take collective effort and a shared roadmap. Governments must set the direction through clear standards, incentives, and infrastructure support, while industry players and investors bring the systems to life.

A regional task force could help align recycling definitions, certification processes, and waste codes, drawing on models like the EU’s Packaging and Packaging Waste Regulation.

Blended financing—mixing public capital with private investment—can help de-risk early-stage projects and unlock funding at scale.

Innovation hubs focused on circular technologies, along with public awareness campaigns, will be key to building momentum and trust.

With the right coordination, the GCC can move from vision to execution and lead in the next wave of sustainable industrial development.

Beyond environmental gains, what are the potential economic multipliers of circularity that the GCC could realise through chemical recycling?

Circularity isn’t just an environmental imperative, it’s a powerful economic opportunity. Chemical recycling, being more knowledge-intensive than traditional petrochemicals, can drive job creation across collection, sorting, logistics, and advanced manufacturing.

It supports the growth of new value chains, boosts GDP through higher-value outputs, like recycled polymers, and opens doors for industrial diversification. These are aligned with long-term national goals like Vision 2030.

Even a partial shift from virgin to recycled production could deliver meaningful gains in innovation, productivity, and economic resilience.

By Abdulaziz Khattak