This joint report by Strategy& and KAPSARC explores how this new plastics economy presents an opportunity for Middle East countries, in particular those of the Gulf Cooperation Council (GCC), to become a global hub for circular plastics. By linking plastic waste supply from Asia with recycled plastic demand in the West, the GCC countries can leverage their strengths—capital, infrastructure, and petrochemical expertise—for chemical recycling. Some GCC firms are already pioneering commercial-scale chemical recycling projects. Developing a circular plastics economy aligns with national diversification goals, creating new value chains beyond hydrocarbons. Chemical recycling is knowledge-intensive and thus offers potentially higher economic multipliers and innovation-driven growth than traditional petrochemicals production. To realize this potential, GCC countries would need to put in place several foundational elements. These include securing stable demand for recycled polymers; establishing plastic waste trade corridors with India, Southeast Asia, and other exporting regions; and building integrated waste management infrastructure. More broadly, the GCC region would need to foster innovation and attract private investment in large-scale recycling plants. Key policy actions for advancing such goals include incentivizing efficient end-of-life management of plastic wastes, setting product design and labeling standards for recyclability, and establishing standards—especially for food-grade recycled plastics. With these reforms, the GCC region can offer regulatory certainty, stimulate local markets, and attract global technology providers, positioning itself as a leader in the circular plastics economy.
