UAE Circular Economy Council discusses policies to accelerate shift to circular models and expand biofuel production

Importance of private sector’s active participation in the national circular economy ecosystem highlighted

The UAE Circular Economy Council held its second meeting of 2025 at the Blue Biofuels factory in Abu Dhabi, chaired by H.E. Abdulla bin Touq Al Marri, Minister of Economy and Tourism and Chairman of the Council, in the presence of H.H. Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO of the UAE Independent Climate Change Accelerators (UICCA). It was attended by council members from both the public and private sectors. The meeting reviewed proposals for the second batch of circular economy policies under the UAE Circular Economy Agenda 2031, targeting key sectors such as sustainable transportation, sustainable infrastructure, and clean industries.

H.E. Bin Touq affirmed that, under the directives of its wise leadership, the UAE continues to adopt integrated and advanced national strategies and initiatives to drive sustainable economic and social development, in line with the principles of the circular economy and the objectives of the UAE Circular Economy Agenda 2031.

Circular economy: A strategic opportunity to enhance economic growth

His Excellency said: “The circular economy is a key pillar of the UAE’s new economic model for the next 50 years, which is built on more diversified and resilient economic components. In this context, we will continue, through the Council, to strengthen cooperation with relevant federal and local government entities as well as the private sector, to accelerate the development of UAE circular economy policies across four main sectors - manufacturing, food, infrastructure, and transportation - ensuring the optimal utilization of natural and financial resources.”

Private sector’s active participation in circular economy transition

His Excellency emphasized the importance of the private sector’s active participation in the national circular economy ecosystem, encouraging it to adopt cleaner production methods and technologies, reduce environmental pressures, and meet basic needs, in line with the UAE’s vision of becoming a global leader in green development.

H.H. Sheikha Shamma added: “The circular economy is not just an environmental commitment; it represents a strategic opportunity to achieve long-term, sustainable economic growth. In the UAE, we believe in our ability to transform challenges into achievements, and we continuously strive to empower entrepreneurs and develop innovative solutions that turn waste into valuable resources. We will continue to strengthen collaboration with partners in both the government and private sectors to support policies that advance the circular economy, ensuring sustainable prosperity and environmental responsibility for future generations.”

Initiatives to foster innovative circular economy projects

The latest meeting of the Circular Economy Council focused on developing innovative policies and ventures, including economic models to support private sector companies operating in this promising field. The meeting featured a presentation on the legislative, regulatory, and national policy frameworks that underpin the UAE’s vision for a sustainable and innovative circular economy, aligned with global best practices.

The Council also reviewed a set of incentives and initiatives designed to encourage projects that enhance resource sustainability and promote the adoption of circular practices across all key sectors, fostering sustainable production and consumption chains. These efforts are part of the UAE’s broader ambition to establish itself as a global hub for the circular economy within the next decade.

Localizing innovation and technology in circular manufacturing

Moreover, the meeting explored future directions for localizing innovation and technology in circular manufacturing, recognizing them as key pillars in the transition toward a more sustainable and resilient economy. The Council underscored the critical role these elements play in delivering advanced solutions for industrial processes, ensuring optimal resource utilization, minimizing waste, enhancing productivity, and reducing the environmental footprint of the industrial sector.

Digital platform to support circular economy startups

The participants also emphasized the importance of developing integrated digital platforms for the circular economy, particularly a dedicated platform to empower startups and SMEs operating across various segments of this sector nationwide. This initiative aims to support business growth and foster innovation in key projects that advance sustainability and ensure the efficient utilization of natural resources.

Online marketplace for plastics

The discussions also included a proposal for a specialized online platform for plastic materials trading, designed to facilitate safe buying and selling while promoting plastic waste recycling. This initiative aims to establish a digital ecosystem that supports sustainable growth and accelerates the transition to a circular economy.

The Council reviewed a presentation by PepsiCo – MENA & Pakistan, highlighting the company’s efforts in utilizing recycled plastics and exploring opportunities within this field.

The meeting concluded by stressing the importance of strengthening the Council’s partnerships at both regional and international levels, particularly in the areas of circular economy and climate technology. Participants underscored the value of exchanging best practices with experienced international entities and leveraging the global momentum around climate action to help shape national policies that support the transition to a sustainable economy.