Circular economy - Saudi Arabia
Urbanization, population growth and economic development have significantly increased the demand on the planet’s limited natural resources. Circular economy is an economic model designed to minimize the consumption of resources by keeping materials and components in use for as long as possible.
Unlike the traditional economic model, which is a ‘take-make-dispose’ that exhausts raw materials and discards products after use, the circular economy model mimics natural systems where nothing is wasted. In the loop, raw materials are recovered through high-quality recycling or composting, returning materials safely to nature or its technical cycles in which it can be used again.
By transitioning to a circular economy, the government of the Kingdom of the Netherlands, the Dutch private sector and knowledge institutes aim to reduce the use of scarce resources, prevent supply chain disruptions and minimize environmental impact. In doing so, it aims to increase its economic resilience, while also creating economic opportunities, and promoting innovation in product design.
Cooperation between the Netherlands and Saudi Arabia
The Netherlands is one of the world's leading nations in circular economy with the highest material recycling rate, low landfill use, low domestic waste production per capita, and efficient waste to energy systems, supported by advanced infrastructure, and a government-wide strategy aiming for a fully circular economy by 2050 with a 50% reduction in raw material use by 2030.
Saudi Arabia has deeply embedded the principle of a circular economy in its reform agenda Vision 2030. Within this framework, the Kingdom aims to reduce reliance on hydrocarbons, conserve resources, and advance environmental sustainability. Key ambitions include diverting up to 85% of municipal waste from landfill, increasing municipal recycling and recovery, scaling up composting and fostering a more resource-efficient manufacturing models. Broader goals also includes industrial waste diversion, resource recovery, and the Circular Carbon Economy approach (reduce, reuse, recycle, remove) to support net-zero emissions ambitions by 2060.
Through the Saudi Investment Recycling Company (SIRC) and its public private partnerships, the Saudi government is investing heavily in modern infrastructure, advanced technologies, and innovative integrated systems and on the regulatory front, the National Center for Waste Management (MWAN) implemented wide-ranging reforms.
Work of the Dutch embassy
The Embassy of the Kingdom of the Netherlands, together with local Saudi stakeholders, work closely to support Saudi Arabia's circular economy ambitions under reform agenda Vision 2030 by for example collaboration in carbon capture, solid and water waste management, waste-to-energy and other technologies that align with Saudi’s circular carbon framework.
Through economic missions, joint research & development, technology transfer, and local investments, the Netherlands and Saudi Arabia aim to turn circularity into a driver for sustainable growth, creating new trade opportunities for both Kingdoms and strengthening global sustainable value chains.
Read more about the Netherlands’ circular economy strategy 2050.
Would you like to learn more about the Embassy’s activities in circular economy? Connect with our Economic team via e-mail.