While the global circular economy in the automotive aftermarket is projected to reach $54 billion by 2030, the GCC is at a critical crossroads regarding its End-of-Life Vehicle (ELV) infrastructure. Currently, the region lags behind the EU and Japan due to a lack of harmonized ELV legislation.
The challenge lies in the current informal dismantling ecosystem, where a significant portion of vehicle waste is kept in unmanaged scrap yards or remains unaccounted for. Formalizing this sector could unlock a multi-billion dollar recycling opportunity for recoverable metals, plastics, and glass.
"National circular economy policies are creating a regulatory push that de-risks investment in recycling," explains Ishwinder Suri of Aranca. As Saudi Arabia and the UAE lead with initiatives like the Vehicle Scrappage & Recycling Program, the move toward a formal, tech-enabled recovery system is becoming an economic necessity to secure raw materials locally.
Source: Aranca
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