A major milestone in the UAE’s circular economy, recycling up to 80% of waste paper generated domestically; rising demand for paper packaging and e-commerce driving strong regional industry growth; GCC paper packaging market forecast to reach nearly $13 billion by 2032; UAE alone requires over 1 billion paper bags annually
Star Paper Mill will announce the commissioning of its $54 million recycled containerboard mill in KEZAD (Khalifa Economic Zones Abu Dhabi) during ProPaper Dubai 2025, with construction now 95% complete.
“We expect trial production at this landmark facility to begin before the end of this year, followed by progressive scale up,” says Star Paper Mill Managing Director Majid Rasheed.
The new 1,35,000 tonne recycled containerboard mill, spread across 59,000 square metres, will be formally presented at ProPaper Dubai 2025 to be held from 13-15 October – which this year highlights sustainability initiatives reshaping the global paper industry.
“This project reflects the vision of the UAE leadership to foster sustainable industries,” adds Rasheed. “It is designed on circular economy principles, with waste paper primarily sourced within the UAE serving as the main raw material. By recycling domestic waste streams, the facility will reduce reliance on imports, support the Government’s Make it in the Emirates vision, and significantly advance the UAE’s environmental protection goals.”
As the Platinum Sponsor of ProPaper Dubai 2025, Star Paper Mill will showcase the project to more than 7,000 trade visitors. Organisers Verifair expect the event to attract global paper industry leaders, opening opportunities for collaboration across the Middle East and Africa region, where paper and pulp manufacturing is valued at over $20 billion.
The KEZAD facility will produce biodegradable recycled containerboards used in the manufacture of corrugated cartons and paper bags. At least 80% of its waste paper requirement will be met from domestic sources, with the balance imported from markets such as the US and the UK.
Star Paper Mill has also secured an additional 32,000 square metre plot adjacent to the primary site for potential future expansion. “A detailed feasibility study will determine the next phase of development based on evolving market dynamics,” confirms Rasheed.
Demand for biodegradable and paper-based bags in the UAE and the rest of the GCC is surging, fuelled by government action against single use plastics and strong consumer preference for sustainable alternatives. Market studies suggest annual growth of 10–12%, with the UAE alone requiring over 1 billion paper bags per year, especially from retail, food service, and e-commerce sectors.
Independent data also shows that the GCC paper packaging market, currently valued at around $9.5 billion, is expected to reach nearly $13 billion by 2032, growing at a CAGR of 3.8%.
“The Middle East and Africa’s paper industry is being transformed by e-commerce growth and rising demand for sustainable packaging solutions. Recycling is at the heart of this shift, and leading players are focused on green production to help mitigate climate risks,” says Verifair Managing Director Jeen Joshua.
