SIRC” Acquires 35% Stake in “Waraq” to Support the Circular Economy and Achieve Environmental Sustainability

aleqtsad. Riyadh

The Saudi Investment Recycling Company (SIRC), a wholly owned subsidiary of the Public Investment Fund (PIF), announced its acquisition of a 35% stake in “Waraq,” a leading paper and cardboard recycling company in the Middle East. This strategic investment aims to bolster national efforts toward achieving environmental sustainability and promoting the circular economy.

This acquisition represents a pivotal step toward realizing Saudi Arabia’s Vision 2030 by reducing reliance on landfills and increasing recycling rates. The agreement includes direct financing to enhance Waraq’s operational capacities, enabling the company to expand its production lines and improve its operational efficiency, thereby supporting national efforts to reduce carbon emissions and build sustainable infrastructure.

Founded in 1994, Waraq has established itself as a national pillar in the recycling sector, operating three manufacturing plants and 12 waste collection centers with an annual production capacity of 450,000 tons. This investment aligns with SIRC’s strategy to support local recycling companies and empower them to offer innovative and sustainable solutions that transform waste into valuable economic resources.

The partnership between SIRC and Waraq serves as a leading model for strategic collaborations that empower the private sector and strengthen the local job market by creating new employment opportunities. Additionally, the new governance structure, which includes appointing three SIRC representatives to Waraq’s Board of Directors, underscores the importance of strategic guidance in fostering sustainable growth.

This initiative forms part of SIRC’s strategy to develop an integrated supply chain between waste management and recycling processes, aiming to enhance efficiency and reduce waste. The approach supports the conversion of recycled materials into value-added products for both local and international markets, thereby advancing the transition toward a comprehensive circular economy.

The investment reflects SIRC’s commitment to achieving the United Nations Sustainable Development Goals (SDGs), particularly Goal 12 related to responsible consumption and production. By enhancing recycling efficiency, SIRC contributes to waste reduction, resource optimization, and encourages national industries to adopt sustainable practices.

Furthermore, this acquisition supports Saudi Arabia’s efforts to achieve net-zero emissions and highlights SIRC’s pioneering role in developing innovative environmental solutions that reduce carbon emissions and promote ecological balance.

The partnership between SIRC and Waraq represents a practical model for enhancing local content through national capacity development, providing specialized job opportunities in the recycling sector, and supporting local companies to become leaders in the green economy.

This collaboration also reflects PIF’s strategic role as a key driver of economic development through fostering partnerships that support the private sector and creating innovative business models that contribute to achieving developmental goals.

Through this acquisition, SIRC reaffirms its commitment to leading the circular economy in Saudi Arabia by offering integrated waste management and recycling solutions. This investment marks a fundamental step toward environmental sustainability, preserving natural resources, and promoting the green economy in alignment with Saudi Arabia’s Vision 2030.