Circular economy in Saudi Arabia: From vision to delivery

Saudi Arabia’s transformation is unfolding at an unprecedented scale, with new cities, infrastructure, and industries driving the ambitions of Vision 2030. As development accelerates, so does the need to use resources more efficiently and reduce waste. This is where the circular economy comes in. 

By moving away from the traditional take-make-dispose model, circularity aims to keep materials and resources in use for longer, reducing waste and creating greater value throughout their lifecycle. In Saudi Arabia, circular economy principles are increasingly being integrated into national policies and major development projects, supporting the Kingdom’s goals for sustainable growth, resource efficiency, and long-term resilience.

The core principles of circular economy

At its core, the circular economy replaces the traditional take-make-dispose model with lifecycle thinking, keeping products, materials, and resources in use at their highest value for as long as possible. The goal of a circular economy is to keep products and materials in use at their highest value for as long as possible. 

The main flows of circular economy represent a hierarchy of value retention strategies rather than alternative means. As shown in the butterfly diagram below, the smaller the loop, the greater its economic and environmental benefit, as it retains more of a product’s value, energy, and materials. The greatest impact is achieved when circular economy principles are adopted across entire value chains, supported by policy, investment, and collaboration.  

Circular economy as a national transformation strategy

Circularity has become an integral part of the Kingdom’s wider transformation agenda. This is reflected in initiatives such as the Circular Carbon Economy (CCE) framework, which promotes resource efficiency and sustainable growth through the principles of reduce, reuse, recycle, and remove. The Saudi and Middle East Green Initiatives aim to reduce emissions, plant 10 billion trees, and generate 50% of electricity from renewable sources by 2030. Programmes such as the Saudi Investment Recycling Company (SIRC) and Udeem are helping to improve waste management, increase recycling rates, and support more efficient resource use through better data and digital technologies.

The launch of EPD Saudi Arabia by KAUST Research and Technology Park in November 2025 is supporting a more transparent, data-driven materials market through the adoption of Environmental Product Declarations (EPDs). This increased emphasis on material transparency is expected to influence procurement decisions, project specifications, and supply chain practices across the construction sector. While these policies and initiatives are creating the foundations for a circular economy, their success ultimately depends on implementation. Saudi Arabia’s giga-projects provide some of the clearest examples of how circular economy ambitions are being translated into measurable outcomes at scale.

Leading by example: circular economy in giga-projects

Saudi Arabia's giga-projects are demonstrating how circular economy principles can be embedded at scale, integrating resource efficiency and waste reduction into planning, construction, and operations. This is clear in Qiddiya City, which has implemented an integrated waste management strategy that treats construction and municipal waste as valuable resources. Based on circular economy principles, the strategy promotes sustainability across the full value chain, from collection and segregation to treatment and recycling. This approach achieved measurable results in 2024, achieving an 82% waste segregation rate across all construction sites.

Diriyah has embedded circular economy principles within its ESG framework, combining heritage preservation with current sustainability objectives. In 2024, the project achieved an average construction waste diversion rate of 90.6% across its masterplans, demonstrating strong commitment to resource recovery and material reuse. To reduce embodied carbon and reliance on virgin materials, Diriyah is also incorporating circular and low-carbon construction materials. This includes reviving the use of traditional Najdi sun dried mud bricks, which have an embodied carbon footprint approximately 90% lower than conventional concrete blocks, as well as pioneering the use of green concrete to further reduce material-related emissions.

From flagship projects to market adoption

Saudi Arabia’s giga-projects have demonstrated that circular economy principles can be successfully implemented at scale. The next step is embedding these practices across the wider construction sector. Our experience across private sector developments shows that many circular economy strategies are already practical and commercially viable.  

Measures such as specifying products with Environmental Product Declarations (EPDs), increasing recycled content, designing for adaptability, and selecting durable materials can often be implemented with minimal impact on project budgets and existing processes. While Lifecycle assessment (LCA) helps project teams make more informed design and procurement decisions from the outset.

As circular economy principles become more embedded across Saudi Arabia’s built environment, organisations that adopt these approaches early will be better positioned to meet evolving market expectations, respond to ESG requirements, and deliver long-term value. The foundations are now in place, the opportunity lies in scaling circularity beyond flagship projects and into mainstream development.