Enabling Sustainable Transitions for SMEs in Saudi Arabia

Abstract

This project explores how small and medium-sized enterprises (SMEs) in Saudi Arabia can contribute to the country’s sustainability transition under Vision 2030, using eco-packaging in the food and retail sectors as a practical starting point. The report highlights the shift from traditional, low-cost plastic packaging practices toward more sustainable alternatives such as compostable, reusable, and recyclable materials, driven by growing consumer awareness, government regulations, and emerging green startups. It identifies major barriers facing SMEs, including limited awareness, higher costs, weak recycling infrastructure, and lack of sustainability expertise, while also outlining institutional enablers such as government initiatives, financial support programs, and sustainability-focused incubators. Drawing lessons from Dutch SMEs, the project proposes solutions including financial incentives, cross-sector collaboration, pilot programs, digital platforms, and awareness campaigns to accelerate adoption. Ultimately, the report presents a roadmap for scaling eco-packaging adoption across Saudi SMEs as a catalyst for broader circular economy practices and long-term sustainable business transformation.