The UAE’s strategic push to phase out single-use plastics is creating a significant surge in the market for sustainable alternatives, with the Mohammed Bin Rashid Innovation Fund (MBRIF) reporting an annual demand growth of 25 to 30 percent. This trend is highlighted by the success of Avani Eco Middle East, a member of the MBRIF Guarantee Scheme, which is at the forefront of providing eco-friendly packaging solutions to a growing roster of businesses.
Regulatory Tailwinds
The primary driver behind this market shift is the UAE’s progressive environmental legislation. The pace of adoption for sustainable solutions has accelerated significantly since 2023, following clearer implementation timelines for the nationwide ban on single-use plastics.
With the second phase of the ban taking effect on January 1, 2026, which will cover a wider range of products including cups, cutlery, and food containers, demand for compliant alternatives is expected to climb even further. Businesses are proactively seeking innovative solutions to align with the new regulations and meet consumer expectations for environmental responsibility.
Measuring The Impact
The transition to sustainable packaging is yielding tangible environmental benefits. According to data from Avani Eco Middle East, businesses shifting from conventional plastic to its fibre- and plant-based packaging have reduced their single-use material consumption by up to 25 percent and cut packaging-related carbon emissions by as much as 40 percent.
Fatima Al Naqbi, Acting Assistant Undersecretary for Support Services Sector at the Ministry of Finance and the Ministry’s representative at MBRIF, commented on the success. “The company’s data clearly demonstrates how innovation, regulation, and environmental responsibility can work in tandem to reduce waste, lower emissions, and strengthen the circular economy,” she stated.
Since 2022, Avani estimates its customers have collectively avoided nearly 300 tonnes of single-use plastic waste and prevented over 2,500 tonnes of carbon emissions.
Ecosystem Support In Action
The growth of companies like Avani is being actively nurtured by the local startup ecosystem. In 2022, MBRIF provided Avani Eco Middle East with a government-backed guarantee of AED 2.5 million under its Guarantee Scheme.
This crucial support enabled the company to localize its manufacturing operations in the UAE, invest in R&D, and expand its product portfolio. This has strengthened its supply chain resilience, allowing it to serve a growing base of over 400 corporate and SME customers across the region.
“From day one, our mission has not only been to replace plastic with plant-based materials, but to help businesses use fewer single-use items overall,” said Peter Avram, CEO of Avani Eco Middle East. “The UAE’s plastics regulations have given clear direction, and our role is to make compliance practical, reliable and impactful.”
About Avani Eco Middle East
Founded in 2017, Avani Eco Middle East produces 100% biodegradable, plastic-free products such as cassava- and potato-starch-based bags, fibre-based tableware, and plant-based cutlery, cups, and straws. The company’s packaging is made from renewable resources like cassava, corn, and sugarcane. From its facility in Dubai Science Park, the company serves more than 400 active customers across luxury hotels, fine-dining groups, catering companies, and retailers.
About the MBRIF
The Mohammed bin Rashid Innovation Fund (MBRIF) is a federal initiative launched by the Ministry of Finance and operated by Emirates Development Bank. Through its Guarantee Scheme, MBRIF offers members access to affordable funding via a government-backed guarantee. Its Accelerator program, launched in 2018, aims to enhance the growth potential of innovative businesses by offering world-class services and coaching to help them scale.
Source: Zawya
