Re-cycle of life
by ArabianBusiness.com staff writer on Sunday, 18 February 2007
The Middle East has been slow to respond to the challenge of climate change, but Dubai is leading the way with a venture unique to the region — Dubai Recycling Park (DRP).
National Projects Holding Co. (NPHC), a subsidiary of the National Real Estate Co. of Kuwait, has signed an agreement with Dubai Industrial City (DIC), a subsidiary of Tatweer, to establish the first fully integrated waste management and recycling park in the Middle East.
“To be frank, it is as much an investment decision as it is a social responsibility decision,” says Musaed Al-Saleh, vice chairman and CEO of NPHC. “It is a profitable business model abroad,” he continues.
“However, when you try to adapt it to the Middle East, laws and regulations, are not currently in place to assist you, and to make it as profitable as it should be.
“For instance in Europe and the West tipping fees exist — they don’t here,” adds Al-Saleh. “Licences are available for certain types of recycling, but not all types. So as legislation progresses, profitability should go up.”
DRP will be developed on a site measuring 1,500,000 sq ft with a 49-year lease agreement with Dubai Industrial City, and a capital investment of up to US$150m. Construction is planned to commence in mid-2007 and will be completed within 18 months.
“The government, generally speaking, should privatise waste management and recycling,” urges Al-Saleh.
“There’s quite a bit of a learning curve that needs to take place on this issue, and no one entity — be it the business sector or the governmental sector — should place obstacles in front of the other in terms of trying to solve the global warming issue.
“The business community should come under pressure to tackle global warming, and there should be different taxes and different legislation for different types of industries,” he continues. “There should be incentives for companies to reduce the waste they produce, as the volumes of waste are tremendous in this region. For example there’s nowhere to recycle newspapers — you read five or six newspapers a day and it’s just being wasted on a daily basis.”
It is estimated that approximately 120 million tonnes of waste is currently produced in the GCC countries. 60% is from Saudi Arabia, 20% from the UAE and the rest is from Kuwait, Qatar, Oman and Bahrain. Of the 120 million tonnes of waste, 55% is estimated to be construction and demolition waste, 20% municipal waste, 18% industrial waste and 7% hazardous waste.
Dubai is estimated to have the highest waste per capita production in the GCC, equating to an emirate total of 9.4 million tonnes per year, or 35% of the waste produced in the UAE. Waste production in Dubai is expected to increase from 10 million tonnes in 2004 to over 20 million tonnes by 2010.
“This may sound controversial, but it’s a fact that the Middle East has neglected [its environmental responsibilities],” argues Al-Saleh. “Countries in the region are all in the top 10 in the world in terms of waste production per capita. In terms of socially responsible investments it has been neglected — it simply wasn’t on the agenda. People were too focused on the profits side rather than the social responsibility side.”
It seems, however, as though Dubai is the exception in the GCC. The emirate is no longer reacting to the growing requirement of waste management based on current demand, but has taken the initiative to plan ten years in advance. “As a company we’re trying to play a role not only in terms of business and profit, but also in terms of contributing to the community, to society, and I hope bigger and larger companies will try to do this elsewhere in the region,” says Al-Saleh. “We are definitely breaking new ground. I hope this catches on because there is so much waste in the region, that if you set up another 10 of these recycling parks, there would be enough business.
“Since announcing the project we have received interest from Saudi Arabia to do the same thing, and also Qatar,” he continues.
READERS' COMMENTS
Posted by Sandhya Prakash, Dubai, UAE on Monday 26 February 2007 at 20:55 UAE time
IAHV has just started a Reduce Plastic bags from Grocery stores campaign alongwith Dubai Municipality and the Choithram outlets. It would be great to have the support of the Recycling Park on such initiatives. Do write to juteup@gmail.com.
Posted by Gloria Burler, Sharjah, UAE on Sunday 25 February 2007 at 16:49 UAE time
Here, it would be good if there were bins dedicated to different types of rubbish - paper, plastic, glass, and plant and wet waste. These could be situated below the buildings for convenience. The public, however have to take responsibility for recycling. The government has an educational responsibility but the practicality lies with the public, and the truth is although there are some people willing to recycle their garbage there are many too lazy to do so. It is easier to throw it on the pavement as is evidenced especially on the streets of Sharjah. Used furniture and old unwanted household items could be collected weekly and placed in a specific area where they could be sold for a nominal fee. Wet waste could be converted into organic compost which could be used for agricultural fertiliser. There should be special dumping areas for other kinds of waste like tyres and scrap metal( toxic waste already has one area. in this way we can clean up the emirates and help the environment at the same time
Posted by Jasmine, Sharjah, United Arab Emirates on Sunday 25 February 2007 at 15:43 UAE time
Hi. Although it is a US website, you can always pickup tips how to contribute in small ways to reduce global warming: http://www.fightglobalwarming.com/
Posted by Jasmine, Sharjah, United Arab Emirates on Sunday 25 February 2007 at 15:01 UAE time
For people in Sharjah who are saving used paper, you can leave it near Radisson-SAS hotel Sharjah. Proceed to the left of the car park in front of the hotel premises and you'll find an enclosure. The Sharjah Environmental Organization collects it from there.
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