The Muhammad bin Rashid Innovation Fund has revealed a significant rise in the demand for environmentally-friendly packaging solutions in the UAE. This increase, reported by Avani Eco Middle East, a member of the fund’s guarantee program, is between 25% to 30% annually. This growth coincides with a gradual phase-out of single-use plastic materials.
The surge in demand aligns with the acceleration of corporate responses to new regulatory measures, particularly as the second phase of the single-use plastic ban comes into effect on January 1, 2026. This phase will encompass products such as cups, lids, utensils, plates, straws, and food containers.
Fatemah Yousef Alnaqbi, assistant undersecretary for the Ministry of Finance’s supportive services sector and the ministry’s representative in the fund, stated that Avani’s business growth exemplifies the practical impact of supporting innovative companies on both environmental and economic fronts. She emphasized that the guarantee program has played a crucial role in expanding the company’s operations within the country at a time when the market is undergoing a significant shift away from traditional plastic products. She added that the data reflects how innovation, regulation, and environmental responsibility can integrate to minimize waste and emissions while promoting a circular economy.
According to the company’s data, the pace of growth accelerated in 2023 due to clearer regulatory implementation timelines and increased commitment from major buyers to comply throughout their operational processes. Audited sales reports and product life cycle analyses show that organizations that transitioned from conventional plastic to fiber and plant-based solutions reduced their single-use material consumption by 15% to 25% and cut carbon emissions related to packaging by 30% to 40%. Additionally, the number of bags used decreased by 30% to 40% when replacing plastic bags with biodegradable alternatives.
Since 2022, Avani estimates that its clients have helped avoid around 300 tons of single-use plastic waste, prevented over 2,500 tons of carbon emissions, and utilized over 3 million biodegradable bags instead of traditional plastic ones.
Peter Afraim, the company’s CEO, explained that Avani’s mission extends beyond merely replacing plastic with plant-based materials; it involves helping organizations rethink their consumption patterns to achieve measurable reductions in waste and carbon footprints. He noted that clear regulatory frameworks in the UAE have created a supportive environment for companies to comply in practical and efficient ways.
The fund, managed by the Emirates Development Bank, provided AED 2.5 million to Avani Eco Middle East in 2022 through its guarantee program, enabling the company to localize manufacturing, enhance its investments in research and development, expand its product portfolio, and build a more resilient supply chain to meet the growing demand from large corporations and small to medium-sized enterprises.
With the second phase of the plastic reduction measures coming into effect, the company anticipates continued growth in demand for plant-based and recyclable packaging solutions, particularly as pressure mounts on businesses to demonstrate the real environmental impact of their material and packaging choices, marking a structural shift towards more sustainable consumption practices.