Mohammed Bin Rashid Innovation Fund reveals growing demand for eco-friendly packaging solutions in the UAE

Accelerator
MBRIF News
04.05.2026

Solutions offered by Avani, one of the companies participating in the Fund’s Guarantee Scheme.

30% rise in demand for sustainable packaging solutions amid the phased reduction of single-use plastics.

Dubai, UAE – 26 February 2026:

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 per cent, driven by businesses’ response to the gradual restrictions imposed on single-use plastic materials.

Environmental and economic impact

Fatima Al Naqbi, Acting Assistant Undersecretary for Support Services Sector at the Ministry of Finance and the Ministry’s representative at MBRIF, stressed that the growth in demand for the solutions offered by Avani Eco Middle East 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 per cent, while cutting packaging-related carbon emissions by as much as 40 per cent. These results coincide with the entry into force of Phase Two of the UAE’s single-use plastics ban, effective 1 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 per cent in single-use product consumption, alongside 30 to 40 per cent cuts in packaging-related carbon emissions. In addition, customers reduced bag usage by 30 to 40 per cent 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.