Tell us about the initial years of Al Qaryan Group. What was the vision with which it was started?

Al Qaryan Group had a humble beginning in 1988 as a small scrap yard. Since then, the company has grown by leaps and bounds into a significant player in the region’s recycling industry. With both vertical and horizontal integration, it has leveraged its scale and optimised its operating model. As the case is with any family business, the early days’ vision was to continue growing geographically across the Kingdom. 

How did the company grow from strength to strength? What's the secret behind Al Qaryan's success?

Al Qaryan's success secret is its values, and operating principles, primarily: integrity, trust, and win-win business mindset, which have been well demonstrated over decades of successful business partnerships. This also explains Al Qaryan's reputation as a trusted and reliable partner in all business circumstances, especially during the challenging days. 

What’s in the pipeline for Al Qaryan Group? 

Al Qaryan Group’s vision is to continue to grow in all aspects of the circular economy to become a regional leader with a consistently growing level of export. 

How are Al Qaryan's initiatives aligned with Saudi Vision 2030? 

We have recently launched Al Qaryan Group Sustainability Strategy guided by vision 2030 & the Saudi Green Initiative (SGI). The SGI aims at combating climate change and environmental degradation while promoting emission reduction and offsetting, clean energy usage, and the energy transition. Under SGI, the Kingdom is committed to attaining net zero emissions by 2060. Moreover, the SGI, overall, encourages the implementation of sustainability practices and technologies in various sectors across the Kingdom.

What is the outlook for the ferrous market for Middle East recyclers and traders in 2023 & 2024? 

The market for ferrous recycled materials is experiencing growth in the GCC (Gulf Cooperation Council) region due to the surge in infrastructure projects. Countries such as Saudi Arabia, the United Arab Emirates, and Qatar have invested heavily in infrastructure and construction sectors. This includes the development of industrial sectors, transportation networks, urban planning, and commercial and residential projects. With infrastructure projects on the rise, there is a parallel increase in the demand for steel, a key component in construction. Ferrous recycled materials are commonly used to produce rebar, beams, and other structural components for construction projects. The GCC region's emphasis on sustainable building practices and reducing the carbon footprint further drive the preference for ferrous recycled materials. As a result, the GCC market is witnessing growth as infrastructure projects expand. This growth presents opportunities for metal recyclers to meet the increasing demand by collecting, processing, and supplying quality ferrous recycled materials for the construction sector. Overall, the rising infrastructure projects in the GCC region contributes to the growth of the ferrous market, driven by the need for sustainable and cost-effective materials in construction and infrastructure development.

How is the demand and supply for ferrous recycled materials in the KSA?

The recycled metal market is experiencing a situation where there is a strong demand but a potential shortage in supply. This can be attributed to several factors; firstly, industrial production continues to grow & increasingly rely on recycled metal as a cost-effective and environmentally friendly raw material. However, the availability of recycled metal can be limited for various reasons. Trade dynamics, including shifting policies, tariffs, and international agreements, can also impact the availability of recycled metal in different regions. Changes in global market dynamics may result in fluctuations in market prices, affecting the supply-demand balance. It is essential to note that the shortage is temporary and can vary across regions and time. Efforts to enhance recycling infrastructure, promote responsible consumption, and encourage sustainable practices are vital to address the potential short supply.

What are some of the significant trends that are emerging in the market?

The demand for sustainable materials is increasing across various industries. The concept of a circular economy, which aims to minimise waste and maximise resource utilisation, is gaining traction in the recycling market. Manufacturers focus on establishing closed-loop systems, where recycled materials are continuously recycled and reused in manufacturing. The recycling market increasingly uses advanced technologies for sorting, processing, and tracking collected materials. 

Technologies such as sorting systems, RFID tracking, and advanced analytics are improving efficiency, increasing accuracy, and enhancing overall operations in the industry. With the proliferation of electronic devices, e-waste recycling has become a significant trend in the recycled materials market. The recovery of valuable metals from electronic waste, such as copper, gold, and silver, presents an opportunity for both environmental and economic benefits.

The recycled materials market is increasingly becoming global, with cross-border trade in recycled materials. Manufacturers in countries with high recycled materials demand often import to supplement their production needs. This trend has led to development of international trade networks and establishment of recycled metal export-import regulations. Quality control is considered seriously with the increase in demand for recycled materials. Companies are implementing strict quality standards, conducting thorough inspections, and investing in advanced testing equipment to ensure the purity and reliability of recycled metals.

What are the major challenges that the metal recycling sector faces at the national and global level? How can they be addressed?

On a national level, we are witnessing changes and improvements in many aspects. Our sector specifically has experienced a great deal of development in the past years – several national initiatives were launched to support the government in its journey towards zero waste and carbon neutrality by 2060. These factors played a significant role in ensuring adherence to the best practices on environmental, governance, and social levels. However, the challenge of cultivating awareness on the importance of recycling and promoting safe disposal methods still remains.

On a global level, we all know how the metal recycling industry is prone to economic changes and market fluctuations, impacting its stability and profitability. Addressing challenges in the metal recycling sector requires a multi-pronged approach involving education, infrastructure development, regulation enforcement, and industry collaborations. By targeting these challenges, the sector can overcome barriers and pave the way collectively towards a sustainable future.