Mohammed Bin Rashid Innovation Fund reveals demand for eco-friendly packaging solutions

The Mohammed Bin Rashid Innovation Fund (MBRIF), an initiative launched by the Ministry of Finance to support the UAE’s innovation and entrepreneurship ecosystem, has revealed growing demand for eco-friendly packaging solutions in the UAE offered by Avani Eco Middle East, a member of the Mohammed Bin Rashid Innovation Fund (MBRIF) Guarantee Scheme.

MBRIF noted that demand for these solutions is growing at an annual rate of between 25 and 30 percent, driven by businesses’ response to the gradual restrictions imposed on single-use plastic materials.

Fatima Al Naqbi, Acting Assistant Undersecretary for Support Services Sector at the Ministry of Finance and the Ministry’s representative at MBRIF, stressed that this growth in demand reaffirms that targeted support for innovative companies can translate into tangible environmental and economic impact.

Through the Guarantee Scheme, the fund has supported the expansion of the company’s operations in the UAE at a time when the market is undergoing a transition away from single-use plastic products.

“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,” Al Naqbi said, noting that this progress reflects the vision of the Mohammed Bin Rashid Innovation Fund in this vital sector.

According to the company’s data, the pace of growth has accelerated significantly since 2023, coinciding with clearer implementation timelines and growing commitments by major buyers to ensure compliance across their operations.

Businesses that have shifted from conventional plastic to fibre- and plant-based packaging have succeeded in reducing single-use materials by up to 25 percent, while cutting packaging-related carbon emissions by as much as 40 percent.

These results coincide with the entry into force of Phase Two of the UAE’s single-use plastics ban, effective 1st January 2026, which will cover a wider range of products, including cups, lids, cutlery, plates, straws, spoons, and food containers.

Based on audited sales reports and product-level life-cycle assessments, Avani Eco Middle East reported that customers who replaced conventional plastic products with the company’s certified sustainable alternatives achieved reductions of 15 to 25 percent in single-use product consumption, alongside 30 to 40 percent cuts in packaging-related carbon emissions.

In addition, customers reduced bag usage by 30 to 40 percent when switching from plastic bags to Avani’s biodegradable alternatives.

Overall, the company estimates that since 2022, its customers have helped avoid nearly 300 tonnes of single-use plastic waste, prevented more than 2,500 tonnes of carbon emissions, and replaced traditional plastic bags with over three million biodegradable bags.

“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. “What we are seeing in the data is that when clients commit to the transition, they do not simply swap like-for-like. They optimise formats, rethink what is really needed, and, as a result, cut both waste volumes and carbon footprint in a measurable way. The UAE’s plastics regulations have given clear direction, and our role is to make compliance practical, reliable and impactful.”

In 2022, the MBRIF, an initiative operated by Emirates Development Bank, provided Avani Eco Middle East with a government-backed guarantee of AED2.5 million under its Guarantee Scheme.

The support has enabled Avani to localise manufacturing in the UAE, invest in research and development, expand its product portfolio and build the supply resilience needed to serve a growing base of corporate and SME customers.

WAM