Circular economy and local added value in Oman
Oman's circular economy initiatives are already yielding some local results which include, amongst others, more than 2300 direct jobs. These initiatives include Waste-to-Energy projects, PET recycling, water reuse, and SME participation. Also observed are the import substitution of recycled materials, the development of innovation ecosystems, and the reduction of greenhouse gas emissions. The circular model is thus not only an environmental imperative, but a key driver of local value creation.
This paper adds to the discussion of Oman's circular economy which is still emerging, the key national institutions such as be'ah, the flagship infrastructure and recycling projects, and their role in local value creation aligned with Vision 2040.
OMAN'S STRATEGIC FOUNDATIONS FOR CIRCULARITY
The Oman Vision 2040 focuses on transitioning the Sultanate into a diversified, sustainable, knowledge-driven economy. It fosters private-sector leadership while enhances human capital and economic conserves environmental diversifies. The circular economy provides a practical framework to advance all these pillars in parallel.
The government has established a National Local Content Policy (2024–2030) which focuses on increasing the in-country value for all economic activities. The policy aligns well with circularity as it promotes local supply chains, prefers SMEs for government contracts and encourages sourcing of materials and services domestically.
The rest of the regions industrialized zones (Suhar, Duqm, Salalah, and Al Mazunah) strategically positioned to integrate recycling, repurposing, and green manufacturing. Along with ESG (Environmental, Social, Governance) frameworks introduced by the Oman Investment Authority, there is strong institutional support for a circular transition.
Geographic and demographic Oman unique characteristics also offer advantages. The arid land, abundant solar radiation, and young, educated people are well positioned to innovate in water reuse, renewable energy, composting, and low-waste agriculture.
INFRASTRUCTURE & INSTITUTIONAL SYSTEMS
Oman is one of few countries leading investments towards circular economy infrastructure. The most prominent example is be'ah – Oman Environmental Services Holding Company – responsible for the solid waste management system of the country. Be'ah's mandate also focuses on lowering waste generation, increasing recycling and reuse, and reduced reliance on landfills.
Currently, be'ah oversees more than 10 operated engineered landfills that include the major facilities in Barka and Suhar. The hazardous waste treatment plant in Suhar is one of the largest in the region petrochemical and industrial clusters in the north. In addition, there is a waste-to-energy plant in Barka that is under construction which is expected to process 4,500 tons of municipal solid waste daily and provide electricity to the national grid.
In partnership with Sultan Qaboos University, a pilot biogas plant has been started with the treatment of organic waste from households and farms. Such initiatives not only provide clean energy but also promote technological and workforce innovations.
Another crucial component is treated wastewater. Oman reused about 51 percent out of 96 million cubic meters of treated wastewater in 2023, particularly in industrial and agricultural sectors. This substitution also reduced CO₂ emissions by almost 291,000 tonnes. Oman is also working on expansion plans that will increase the tertiary treatment of water to one million cubic meters daily by 2040.
ASPECTS OF VALUE ADDED WITHIN THE COUNTRY
Oman's initiatives within circular economies highlights the added value as a combination of several factors:
Employment Opportunities: More than 2,300 jobs in recycling, sorting, composting, and logistics have been created by be'ah. Other sectors benefiting include Transport, Repair, Technology, and Facility Management due to the multiplied effect.
Empowerment of Small to Medium Enterprises: Oman's Local Content Policy allows contracts below RO 25,000 to be awarded to local SMEs, thus stimulating waste management businesses including collection, composting, plastics processing, and electronics refurbishment.
Reduction of Foreign Imports: The locally produced recycled PET, crumb rubber, and steel sourced from e-waste contributes to lowering foreign sourced materials. Compost cuts down on the use of chemical fertilizers.
Technology and Innovation: Oman is incorporating innovation into its circular economy through AI-driven recycling facilities and advanced water reuse technologies. Green startups are being supported at centers like Innovation Park Muscat and Sultan Qaboos University.
Environmental Gains: Healthcare benefits alongside reduced emissions from water reuse and landfill diversion are significant. Through treated wastewater reuse, 291,000 tons of CO₂ emissions were mitigated in 2023, showing impressive progress.
Economic Resilience: Oman's self-reliant and economically secure structure is strengthened by local sourcing as it buffers the economy from international supply chain disruptions.
CONCLUSION & RECOMMENDATIONS
There are clearly defined environmental rationales, but also strategic economic drivers behind Oman's transition towards a circular economy. With the right policies and innovative ideas coupled with strong institutional frameworks and local entrepreneurship focused on infrastructure, Oman can convert waste into a strategic resource for building a sustainable and resilient economy.
The key recommendations are outlined below
1. Establish overarching EPR policy framework with defined recycling quotas.
2. Stimulate public sector demand for recycled materials as expressed through public procurement mandates.
3. Enhance allocation and support to green SMEs and innovation centers.
4. Enhance waste segregation and participation at the community level.
5. Consider circular economy frameworks in national infrastructure projects.
Oman is transitioning towards circularity based on Vision 2040 which targets the Sultanate's position as a regional leader in sustainable development and value creation.
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The Sultanate of Oman is now in full acceptance of the circular economy concept which is known as a restorative and regenerative system which looks at waste as a potential resource. This shift is reflective of the Oman Vision 2040, which is the country's holistic development plan focusing on economic diversification, sustainability, human capital development, education, social equality, innovation, and a healthy environment. The circular economy is supportive of these objectives by transforming waste into business opportunities that bolster the economy while creating domestic jobs, conserving resources, and mitigating environmental damage. Oman's circular economy initiatives are already yielding some local results which include, amongst others, more than 2300 direct jobs. These initiatives include Waste-to-Energy projects, PET recycling, water reuse, and SME participation. Also observed are the import substitution of recycled materials, the development of innovation ecosystems, and the reduction of greenhouse gas emissions. The circular model is thus not only an environmental imperative, but a key driver of local value creation. This paper adds to the discussion of Oman's circular economy which is still emerging, the key national institutions such as be'ah, the flagship infrastructure and recycling projects, and their role in local value creation aligned with Vision 2040. OMAN'S STRATEGIC FOUNDATIONS FOR CIRCULARITY The Oman Vision 2040 focuses on transitioning the Sultanate into a diversified, sustainable, knowledge-driven economy. It fosters private-sector leadership while enhances human capital and economic conserves environmental diversifies. The circular economy provides a practical framework to advance all these pillars in parallel. The government has established a National Local Content Policy (2024–2030) which focuses on increasing the in-country value for all economic activities. The policy aligns well with circularity as it promotes local supply chains, prefers SMEs for government contracts and encourages sourcing of materials and services domestically. The rest of the regions industrialized zones (Suhar, Duqm, Salalah, and Al Mazunah) strategically positioned to integrate recycling, repurposing, and green manufacturing. Along with ESG (Environmental, Social, Governance) frameworks introduced by the Oman Investment Authority, there is strong institutional support for a circular transition. Geographic and demographic Oman unique characteristics also offer advantages. The arid land, abundant solar radiation, and young, educated people are well positioned to innovate in water reuse, renewable energy, composting, and low-waste agriculture. INFRASTRUCTURE & INSTITUTIONAL SYSTEMS Oman is one of few countries leading investments towards circular economy infrastructure. The most prominent example is be'ah – Oman Environmental Services Holding Company – responsible for the solid waste management system of the country. Be'ah's mandate also focuses on lowering waste generation, increasing recycling and reuse, and reduced reliance on landfills. Currently, be'ah oversees more than 10 operated engineered landfills that include the major facilities in Barka and Suhar. The hazardous waste treatment plant in Suhar is one of the largest in the region petrochemical and industrial clusters in the north. In addition, there is a waste-to-energy plant in Barka that is under construction which is expected to process 4,500 tons of municipal solid waste daily and provide electricity to the national grid. In partnership with Sultan Qaboos University, a pilot biogas plant has been started with the treatment of organic waste from households and farms. Such initiatives not only provide clean energy but also promote technological and workforce innovations. Another crucial component is treated wastewater. Oman reused about 51 percent out of 96 million cubic meters of treated wastewater in 2023, particularly in industrial and agricultural sectors. This substitution also reduced CO₂ emissions by almost 291,000 tonnes. Oman is also working on expansion plans that will increase the tertiary treatment of water to one million cubic meters daily by 2040. ASPECTS OF VALUE ADDED WITHIN THE COUNTRY Oman's initiatives within circular economies highlights the added value as a combination of several factors: Employment Opportunities: More than 2,300 jobs in recycling, sorting, composting, and logistics have been created by be'ah. Other sectors benefiting include Transport, Repair, Technology, and Facility Management due to the multiplied effect. Empowerment of Small to Medium Enterprises: Oman's Local Content Policy allows contracts below RO 25,000 to be awarded to local SMEs, thus stimulating waste management businesses including collection, composting, plastics processing, and electronics refurbishment. Reduction of Foreign Imports: The locally produced recycled PET, crumb rubber, and steel sourced from e-waste contributes to lowering foreign sourced materials. Compost cuts down on the use of chemical fertilizers. Technology and Innovation: Oman is incorporating innovation into its circular economy through AI-driven recycling facilities and advanced water reuse technologies. Green startups are being supported at centers like Innovation Park Muscat and Sultan Qaboos University. Environmental Gains: Healthcare benefits alongside reduced emissions from water reuse and landfill diversion are significant. Through treated wastewater reuse, 291,000 tons of CO₂ emissions were mitigated in 2023, showing impressive progress. Economic Resilience: Oman's self-reliant and economically secure structure is strengthened by local sourcing as it buffers the economy from international supply chain disruptions. CONCLUSION & RECOMMENDATIONS There are clearly defined environmental rationales, but also strategic economic drivers behind Oman's transition towards a circular economy. With the right policies and innovative ideas coupled with strong institutional frameworks and local entrepreneurship focused on infrastructure, Oman can convert waste into a strategic resource for building a sustainable and resilient economy. The key recommendations are outlined below 1. Establish overarching EPR policy framework with defined recycling quotas. 2. Stimulate public sector demand for recycled materials as expressed through public procurement mandates. 3. Enhance allocation and support to green SMEs and innovation centers. 4. Enhance waste segregation and participation at the community level. 5. Consider circular economy frameworks in national infrastructure projects. Oman is transitioning towards circularity based on Vision 2040 which targets the Sultanate's position as a regional leader in sustainable development and value creation.
