Saudi's Public Investment Fund to form waste management firm

Saudi's Public Investment Fund to form waste management firm
PIF is set to launch Saudi Recycling Company to boost the kingdom's waste management market [representational image].
Published: 17 October 2017 - 12:27 a.m.
By: Neha Bhatia

Saudi Arabia's sovereign wealth fund is planning to launch a waste management company. 

The Public Investment Fund (PIF) announced it would establish Saudi Recycling Company (SRC) to support and operate its investments in domestic recycling projects. 

SRC would also develop and operate projects to increase landfill diversion rates and boost recycling figures in the kingdom. 

It is believed that the firm would also create "alliances with private sector companies" to achieve international standards. 

The kingdom currently recycles around 10% of the 45.3 million tonnes (50 million tons) of recyclable waste it produces, with 90% diverted to landfills, preliminary studies by PIF have found. 

More than 40% of the kingdom's recyclable materials are produced in Riyadh, Jeddah, and Dammam. 

PIF's new plan through SRC "offers the opportunity to recycle around 85%" of the kingdom's total recyclable materials.

These materials may then also be used as "a source of alternative energy" for the manufacturing sector. 

According to Saudi Arabia's state news agency, SPA, SRC's scope of operations will cover all recyclable materials, "as well as each stage of the value chain". 

The firm would also seek to increase public awareness about recycling through the introduction of campaigns and initiatives, the report added. 

Saudi Arabia's facilities management (FM) market is expected to be worth $49.8bn (SAR186.7bn) by the end of 2030. 

Sultan AlKhuraissi, the general manager for operation and maintenance (O&M) at Royal Commission for Jubail and Yanbu (RCJY), told ConstructionWeekOnline this April that FM awareness is increasing in the country. 

He added that activities such as landscaping and utility maintenance now gaining greater value within regional FM programmes.

"I think this [shift of perception] has been happening for a while now," he explained.

"The industry is now more alert about how these components fit into FM. I remember, when I joined RCJY 15 years ago, engineering was seen as a predominantly construction-centric principle, and maintenance was seen as a secondary job."

Facilities Management's Role in Achieving Saudi Arabia's Vision 2030, a report recently released by the Middle East Facility Management Association (MEFMA), found that the kingdom is the Gulf's largest market for FM services.

According to TechSci Research's data, the Saudi FM market accounted for a value share of 55% in the regional FM market last year. 

AlKhuraissi said that private developers would drive a change in the Saudi FM sector: "For example, we don’t see many output-based contracts, key performance indicators (KPIs) or service level agreements (SLAs) yet, and it’s more input-based for now.

"However, there are owners that want their facilities to be world-class in quality, and they maintain their assets reasonably well. FM is the only way to achieve that, and developers are very smart – they know how to do it."

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