Sustainable Insights

June 2025

From Linear to Circular to a Resilient and Sustainable Economy

Over the past few years, the UAE has steered from a fossil fuel dependent economy to that of one focused on an environmentally sustainable model. The nation has established itself as a global leader in sustainable development, with the circular economy serving as a cornerstone of its vision for a resilient and innovative future. By transitioning from a linear “take-make dispose” model to a regenerative system that emphasizes resource efficiency, waste reduction, an sustainable production, the UAE addresses environmental challenges while fostering economic growth.

Launched in 2021, the UAE’s Circular Economy Policy represents a strategic shift toward long-term sustainability and resource efficiency. Designed with high impact sectors in mind — such as infrastructure, transportation, manufacturing, and food production — the policy provides a clear framework for organizations to align with national priorities. For forward-thinking leaders, it presents both a challenge and an opportunity: to innovate business models, reduce environmental impact, and future-proof operations while contributing to the nation’s vision of resilient, sustainable growth.

The circular economy aims to redefine economic growth by placing equal emphasis on positive environmental and social outcomes. Its importance spans multiple dimensions: it conserves natural resources, safeguards biodiversity, and significantly reduces carbon emissions, all while maximizing the efficient use of materials. We’re not asking for grand sacrifices—just a simple shift in mindset: Reduce, Reuse, Recycle, and Recover. These four actions may seem small, but they hold immense power. By weaving them into your daily routine, you actively contribute to protecting the environment and supporting a thriving circular economy.

From an economic standpoint, the circular model lowers costs associated with raw material extraction and waste management, and drives innovation by fostering the development of sustainable technologies and products. Additionally, it empowers local communities by decreasing dependence on imported resources and bolstering domestic industries focused on recycling and resource optimization, creating resilient and self sustaining economies.

The UAE’s Circular Economy Framework

The UAE’s circular economy is guided by the UAE Circular Economy Policy 2021-2031, a comprehensive framework targeting sustainable governance and optimal resource use across four key sectors: sustainable manufacturing, green infrastructure, sustainable transportation, and food production. This policy aligns with national strategies such as UAE Vision 2021, UAE Centennial 2071, and the Dubai Clean Energy Strategy 2050, which aims to reduce environmental stress and position the UAE as a global pioneer in green development. In sustainable manufacturing, the focus is on designing, producing, and recycling goods in ways that minimize pollution and waste. By encouraging manufacturers to adopt efficient practices, the UAE aims to reduce emissions, enhance competitiveness, foster innovation, and create green jobs across skill levels.

Green infrastructure is vital as cities expand construction and demolition currently account for up to 75% of the UAE’s solid waste. The goal is to build and rebuild in ways that reduce material waste, create productive urban systems, and improve access to goods, services, and housing, while fostering healthier, more livable cities. In transport, which contributes 23% to global GHG emissions, the UAE targets zero-emission public transport by 2050. Sustainable mobility will reduce pollution, traffic congestion, and accidents, while improving access to jobs and services. With 90% of its food imported, the UAE is investing in sustainable food systems to improve food security, conserve water, and promote healthier consumption. In 2022, 22 national policies and 16 circular economy activities were approved, expanding opportunities for innovation and sustainable growth.

By prioritizing recycling, reuse, and regeneration, the UAE seeks to minimize waste, lower carbon emissions, and create economic opportunities. The UAE Circular Economy Council, established in 2021, plays a pivotal role in implementing this policy. Chaired by H.E. Abdulla bin Touq Al Marri, UAE Minister of Economy and Chairman of the UAE Circular Economy Council, the Council comprises senior government officials, private sector representatives, and international experts. It oversees the development of mechanisms to achieve the UAE Circular Economy Agenda 2031, aligning federal and local strategies, fostering public-private partnerships, and promoting scientific research to support sustainability. The Council’s efforts are bolstered by initiatives such as Abu Dhabi’s Tadweer waste management programs and Dubai’s waste-to energy projects, which divert significant amounts of waste from landfills.

The Role of UICCA

The UAE Independent Climate Change Accelerators (UICCA) is a nonprofit organization dedicated to accelerating climate action and advancing the UAE’s transition to a green economy. Through innovation, strategic collaboration, and policy advocacy, UICCA supports the UAE Net Zero by 2050 Strategic Initiative.

In February 2025, UICCA signed a landmark agreement with the UAE Ministry of Economy (MOEC) to strengthen the nation’s circular economy agenda. This partnership establishes a strategic framework to support innovation and entrepreneurship through the Circular Economy Cycle under UICCA’s Launchpad Programme. The agreement formalizes a shared commitment to driving sustainable economic transformation. Under this collaboration, MOEC will promote the program, engage investors, and align regulatory frameworks to improve market access for green technologies. Together, UICCA and MOEC aims to accelerate the adoption of advanced recycling solutions, enhance resource efficiency, reduce waste, and unlock new growth opportunities rooted in innovation, knowledge, and investment in emerging sectors of the green economy.

Recent Developments in the Circular Economy

At its first meeting of 2025, held on the sidelines of Investopia in Abu Dhabi, the UAE Circular Economy Council reviewed mechanisms to implement new policies across sustainable infrastructure, transportation, advanced manufacturing, food, and textile recycling. Chaired by H.E. Abdulla bin Touq Al Marri, the meeting emphasized collaborative initiatives between government and private sectors to enhance resource efficiency and attract sustainable investments. H.E. Abdulla bin Touq Al Marri, UAE Minister of Economy and Chairman of the UAE Circular Economy Council, highlighted the circular economy’s role in driving sustainable economic and social development, aligning with the “We the UAE 2031” vision to position the UAE as a global hub for the new economy.

H.H. Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO of UICCA, underscored the circular economy as a pillar for innovation and climate neutrality. She noted the launch of the Circular Economy Cycle under UICCA’s Launchpad Programme to support startups in scaling sustainable solutions. The meeting also explored funding mechanisms for climate tech startups and global best practices to strengthen the UAE’s circular economy ecosystem, reinforcing its attractiveness for sustainable investments. Focused on developing new policies to address the financing challenges faced by climate technology startups in the UAE, the meeting’s goal was accelerating carbon emissions reduction. Participants explored strategies to enhance the UAE’s appeal as a destination for sustainable investment, reinforcing its position as a leading global hub for the circular economy. In addition, the session showcased recent innovations and private-sector initiatives in sustainable technology, clean energy, and waste management. It underscored the critical role of public-private collaboration in advancing the circular transition across key economic sectors, highlighting the need for stronger partnerships to drive impactful, scalable solutions.

Synergies Between Circular Economy and ‘Make It In The Emirates’

The integration of the circular economy with ‘Make It In The Emirates’ creates synergies that enhance sustainability and economic growth. In sustainable manufacturing, ‘Make it in The Emirates’ promotes Industry 4.0 technologies to reduce material waste and extend equipment lifespan. For example, Emirates Global Aluminium’s (EGA) recycling program repurposes aluminium scrap for energy efficient production. Local production under ‘Make It In the Emirates’ minimizes transportation emissions and packaging waste, supporting circular economy goals. Initiatives like Pure Harvest’s hydroponic farming reduce reliance on imported food, promoting sustainable agriculture. Waste management is another key area of alignment.

‘Make It In The Emirates’ encourages industries to design recyclable products and use recycled materials, such as in the construction sector’s adoption of recycled concrete. The Aluminium Recycling Coalition, involving EGA and Tadweer promotes consumer recycling of beverage cans, enhancing collection rates and reducing waste. Textile recycling initiatives, such as Landmark Group’s CircuLife facility, process over 200,000 tons of textile waste annually, integrating advanced recycling technologies to support circularity.

Masdar City’s role as a clean tech hub further bridges these initiatives, fostering innovation in renewable energy and waste management. These efforts create jobs, attract investment, and position the UAE as a global leader in sustainable industrialization.

UAE Circular Economy Initiatives

The UAE is pioneering a circular economy, transforming waste into resources through innovative initiatives across various sectors.
• Textile Recycling in Dubai: Dubai South’s textile recycling facility, a collaboration between Landmark Group and Dubai Customs, repurposes confiscated counterfeit goods into reusable materials using a closed-loop system. With advanced technology and manual sorting, it processes 4.364 million counterfeit items seized in Q1 2025, valued at AED 5.43 million. The facility promotes community engagement by offering AED 10-20 vouchers for donated fabrics, reducing the fashion industry’s environmental toll, where only 1% of 120 billion annual garments are recycled.

• Biodiesel from Cooking Oil: LuLu Group powers its delivery fleet with biodiesel made from used cooking oil collected from its stores, in partnership with Neutral Fuels. The oil undergoes transesterification to produce biodegradable biodiesel, reducing emissions and urban pollutants. This initiative supports the UAE’s net-zero emissions goal by 2050, creates green jobs, and enhances energy security by repurposing waste that would otherwise harm the environment.
• Date Pit Innovation: Emirati entrepreneur Noora Al Mazroui transforms discarded date pits into products like pastries, pasta, cosmetics, and energy drinks. Her process involves washing, boiling, drying, and grinding pits into powder, used in diverse products like tea, coffee, and skincare. This aligns with Sheikh Zayed’s vision of sustainable living, promoting a circular economy through large scale production with local factories.
• Single-Use Plastic Ban and Food Waste Reduction: The Dubai Can 2024 initiative bans single-use plastics, while hotels and restaurants reduce food loss through waste monitoring and redistribution efforts, supporting sustainable resource use.
• Seramic’s Zero-Waste Model: Seramic, born from Masdar Institute, now part of Khalifa University of Science and Technology, recycles industrial waste into value-added products. Seramic Energy develops waste heat recovery projects, and Seramic Matrials produces advanced ceramics, reducing CO2 emissions and fostering a sustainable eco industry in Abu Dhabi.
• Circa Biotech: Circa Biotech’s 1,600 sqm facility in Al Ain, UAE, the GCC’s first industrial Black Soldier Fly plant processes 6,000 tons of food waste annually. Operating in desert conditions with advanced environmental controls, it features feedstock pre-processing, automated rearing halls, larvae-frass separation, drying systems, and oil extraction. Transforming waste into protein meal for animal feed, insect oil for sustainable aviation fuel (SAF) and frass fertilizer, it adheres to strict MOCCAE GMP guidelines. Diverting waste avoids 5,500 tons of CO₂-equivalent emissions yearly, showcasing scalable circular agriculture.

These initiatives, backed by the UAE Circular Economy Policy 2021-2031, position the UAE as a leader in sustainable commerce, leveraging its logistics and innovation ecosystem to drive resource efficiency and environmental stewardship.

Challenges and Opportunities

Despite progress, challenges remain. Transitioning to a circular economy often demands substantial upfront investment and operational restructuring, which can deter some businesses due to concerns over increased costs, reduced competitiveness, or potential job disruptions.
However, the UAE government is playing a pivotal role in easing this transition by offering targeted financial incentives, tax relief, and supportive regulatory frameworks.

By promoting the long term economic benefits — such as cost savings, enhanced resource efficiency, and the creation of new green jobs — governments can help shift perceptions and encourage broader private sector participation. Strategic support and clear communication of the opportunities within circular models are key to overcoming these initial economic hurdles and unlocking sustainable growth.

The UAE’s strategic location, advanced infrastructure, and commitment to innovation make it an attractive destination for sustainable investments. The 2025 Investopia meeting emphasized funding mechanisms for climate tech startups, enhancing the UAE’s appeal as a circular economy hub. Initiatives like the food grade plastic recycling plant in Abu Dhabi, a collaboration between Veolia, Beeah Group, and Agthia, demonstrate the potential for economic growth through sustainable partnerships.

The Road Ahead

Governments play a pivotal role in enabling the transition from the traditional linear economy — “take, make, use, dispose” — to a circular model. By designing forward thinking policies, implementing supportive regulations, and fostering an environment that encourages innovation and sustainable practices, they can empower businesses and communities to adopt circular solutions at scale. As the global community grapples with the escalating effects of climate change, there lies a powerful opportunity to accelerate both digital transformation and sustainable development.

According to a Markets and Markets report, the global green technology and sustainability market is expected to reach US$ 60.7 billion by 2026, growing at a robust CAGR of 27.8%. There is no doubt that the shift towards sustainability is opening new markets and driving demand for eco friendly products and services. The UAE has taken a bold step toward this future by committing US$ 168 billion to achieve net-zero emissions. By the end of 2022, the Abu Dhabi Fund for Development had already invested over US$ 52 billion across strategic sectors both domestically and internationally.

These forward-looking investments position the UAE as a regional leader in sustainability. With this momentum, the nation is well-placed to strengthen its green economy by cultivating a highly skilled workforce and fostering an innovation-driven entrepreneurial ecosystem—key pillars for a resilient, low carbon future.