Dubai: The Mohammed Bin Rashid Innovation Fund (MBRIF), an initiative designed to bolster innovation and entrepreneurship in the UAE, has announced a significant increase in demand for eco-friendly packaging solutions. These solutions are provided by Avani Eco Middle East, which is part of the MBRIF Guarantee Scheme.
According to Emirates News Agency, demand for eco-friendly packaging is growing annually by 25 to 30 percent. This surge is attributed to businesses adapting to restrictions on single-use plastic materials. Fatima Al Naqbi, Acting Assistant Undersecretary for Support Services Sector at the Ministry of Finance, emphasized that this trend showcases the impact of supporting innovative companies, leading to positive environmental and economic outcomes.
The MBRIF's Guarantee Scheme has facilitated the expansion of Avani Eco Middle East's operations in the UAE. This comes as the market transitions away from single-use plastic products. Al Naqbi highlighted that the company's data illustrates how innovation, regulation, and environmental responsibility can collaboratively reduce waste, lower emissions, and support the circular economy.
Data from Avani Eco Middle East indicates that growth accelerated in 2023, driven by clearer timelines and commitments from major buyers to ensure compliance. Businesses transitioning to fibre- and plant-based packaging have reduced single-use materials by up to 25 percent and cut packaging-related carbon emissions by as much as 40 percent.
The UAE's Phase Two ban on single-use plastics, effective January 1, 2026, will widen its scope to include cups, lids, cutlery, plates, straws, spoons, and food containers. Avani Eco Middle East reported reductions of 15 to 25 percent in single-use product consumption and 30 to 40 percent in packaging-related carbon emissions for its customers using certified sustainable alternatives.
Customers also reduced bag usage by 30 to 40 percent with Avani's biodegradable options. Since 2022, Avani's customers have avoided nearly 300 tonnes of single-use plastic waste, prevented over 2,500 tonnes of carbon emissions, and replaced more than three million traditional plastic bags with biodegradable ones.
Peter Avram, CEO of Avani Eco Middle East, stated that their mission extends beyond replacing plastic with plant-based materials. The goal is to help businesses minimize single-use items. The data shows that clients who transition optimize formats and rethink necessities, effectively reducing waste and carbon footprint. UAE's regulations have provided clear direction, and Avani's role is to facilitate practical and impactful compliance.
In 2022, the MBRIF, operated by Emirates Development Bank, provided Avani Eco Middle East with a government-backed guarantee of AED2.5 million. This support has allowed Avani to localize manufacturing in the UAE, invest in research and development, expand its product offerings, and build supply resilience to serve its growing customer base.