Tadweer CEO says Saudi electronic equipment recycling market valued at SAR 10 bln, to arrange IPO in H2 2021

Nasser Aldueb, CEO of Tadweer

The Saudi market of recycling electronic and electrical equipment is valued at SAR 8-10 billion with an annual size of four million tons, Nasser Aldueb, chief executive officer (CEO) of Tadweer, told Argaam in an exclusive.

Tadweer acquires waste electronic and electrical equipment from tenders or under the contracts signed with government authorities and companies.

The company recycled almost 100,000 tons of waste in five years, Aldueb said, adding that the production process takes from 22 to 35 days to make the end product and contribute effectively to converting waste into valuable economic resources.

Tadweer’s business activity realizes a key target of Vision 2030, namely preserving the environment and natural resources through improved recycling processes to get basic minerals and commodities, such as steel, copper, aluminum, as well as gold and silver components. These commodities receive strong demand from local and foreign markets, Aldueb added.

In the second half of 2015, Tadweer was founded and built its plant within 16 months. It started operations in 2017 and reported a net operating profit of SAR 800,000 in the first year of operation. Last year, net earnings rose to SAR 9.5 million.

Tadweer’s plant in Riyadh covers all provinces in the Kingdom. Additionally, Tadweer acquired Sims Recycling Solutions in Dubai, to cover the Middle East and Africa.

The company started with a production capacity of nearly 15,000 tons, and targets to increase it to 45,000 tons this year and to more than 128,000 tons by 2025.

Elsewhere, Aldueb said the company's total investments in the development of production lines will reach SAR 70 million, noting that the company owns advanced technologies as Artificial Intelligence (AI) is used in the processes of sorting, crushing and production.

The CEO highlighted the challenges facing the recycling sector in the Kingdom, represented in the absence of regulations, weak supervision, and transparency, indicating that when laws are enacted, electronic and electrical devices, after the end of their lifetimes, will be disposed of in waste streams for the purpose of recycling.

Several entities and companies do not unveil key information about the large quantities of recyclable materials, and dispose of them through auctions, most of which lack transparency and do not meet the minimum requirements of the regulations, Aldueb said.

Through such auctions, the recyclable materials are sold for the highest price to certain groups benefiting from brokers who encourage illegal employment in the sector and deal with the recycling operations through crushing or burning, which adds a financial burden to the national economy.

The company remanufactures basic commodities to preserve the natural resources of the mines, which reflects positively on the economy.

Tadweer plans to arrange for its initial public offering (IPO) on the Saudi market during the second half of 2021, Aldueb concluded.

For More IPOs