Waste enters 'exciting new phase'

The waste-management market is set to enter an exciting phase.

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The GCC’s position as the world's highest generator of waste per capita presents municipalities with a serious challenge.

Research consultant Frost & Sullivan is planning a comprehensive research report on the solid waste sector in the GCC with a view to predicting future trends. The study will include market growth drivers and restraints, along with the challenges market participants are likely to face in this region.

Scientific management of solid waste is a grave challenge faced by most modern societies. In the Gulf region, where most countries have the highest per capita waste generation across the world, the scale of the challenge faced by civic authorities is even bigger.

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Fast-paced industrial growth, the recent construction boom, increasing population and rapid urbanisation and vastly improved lifestyle and unsustainable consumption patterns have all contributed to this burgeoning waste problem.

Preliminary estimates put the total volume of solid waste generated in the GCC region at around 120 million tons a year. A huge proportion of this is expected to be the waste generated from construction and demolition activities; municipal waste is the second-largest waste category by source.

At present, the GCC waste management sector faces some challenges. At the same time, this also indicates the vast scope for improvement in the existing set-up and practices followed in the sector. Private players can leverage their technical know-how and experience for significant value addition across the waste management value chain.

Challenges
Weak waste collection, transportation and handling infrastructure: In most GCC countries, the existing waste-handling capacity is insufficient. There is need to streamline the waste collection and transportation operations as intermingling of hazardous waste and municipal waste is not uncommon.

Waste recycling is expensive: Though recent years have seen an increase in the number of waste-recycling facilities, the economics of recycling is still not very favourable. In many cases, recycling waste is expensive compared to buying the product.

Under-developed market for recycled products: Insufficient demand for recycled products in the local market has hampered the growth of the waste-recycling industry. There are a few units engaged in recycling waste paper, paperboard and plastics.

Opportunities
Opportunities in the sector are still largely untapped, according to Frost & Sullivan.

Waste collection and transportation services: A number of private players are active in the waste collection and transportation market. At present around 70% of the total waste in Dubai is collected by the private sector. There is good growth potential for such services in the market.

Management of landfill operations: At present municipalities manage the majority of the landfills. However, it is likely that new facilities would be built under BOOT or BOT contracts.

Waste recycling: Recycling of waste paper, paper board, metals and glass is already practiced in GCC, albeit at very small scale. Currently around 88% of the total waste generated in Dubai sent to landfills, which is high by international standards.

Waste-to-energy opportunity: Planning authorities across the region are contemplating setting up waste-to-energy facilities. The market for such technologies is likely to see rapid growth over the next few years.

Equipment suppliers: Increased focus on waste management represents a growing market for suppliers of compactor trucks, garbage bins, incinerators and other auxiliary equipment.

Frost & Sullivan concludes that as GCC countries work towards the implementation of next-generation waste-management practices, the market is set to enter an exciting phase.