Mohammed Bin Rashid Innovation Fund Highlights Surge in Demand for Eco-Friendly Packaging Solutions

Dubai: The Mohammed Bin Rashid Innovation Fund (MBRIF), an initiative by the Ministry of Finance to bolster the UAE's innovation and entrepreneurship landscape, has disclosed a rising demand for eco-friendly packaging solutions provided by Avani Eco Middle East, a participant in the MBRIF Guarantee Scheme.

According to Emirates News Agency, MBRIF indicated that demand for these eco-friendly solutions is increasing at an annual rate of 25 to 30 percent. This growth is attributed to businesses responding to the phased restrictions on single-use plastic materials. Fatima Al Naqbi, Acting Assistant Undersecretary for the Support Services Sector at the Ministry of Finance and the Ministry's representative at MBRIF, emphasized that this trend underscores how targeted support for innovative firms can yield significant environmental and economic benefits.

Through the Guarantee Scheme, the fund has facilitated the expansion of Avani Eco Middle East's operations in the UAE as the market transitions away from single-use plastic products. Al Naqbi highlighted that the company's data demonstrates the synergy between innovation, regulation, and environmental responsibility, which can reduce waste, lower emissions, and bolster the circular economy. This progress aligns with the vision of the Mohammed Bin Rashid Innovation Fund in this critical sector.

The company's data reveals that growth has accelerated since 2023, with clearer implementation timelines and increased commitments by major buyers to ensure compliance across their operations. Businesses transitioning from conventional plastic to fiber- and plant-based packaging have successfully reduced single-use materials by up to 25 percent and cut packaging-related carbon emissions by as much as 40 percent.

These developments align with the enforcement of Phase Two of the UAE's single-use plastics ban, effective from 1st January 2026, which extends to a broader 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 substituting conventional plastic products with the company's certified sustainable alternatives achieved reductions of 15 to 25 percent in single-use product consumption and 30 to 40 percent cuts in packaging-related carbon emissions.

In addition, customers reduced bag usage by 30 to 40 percent 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.

Peter Avram, CEO of Avani Eco Middle East, stated, "From day one, our mission has not only been to replace plastic with plant-based materials, but to help businesses use fewer single-use items overall." He added that data shows that when clients commit to the transition, they do not simply swap like-for-like. Instead, they optimize formats, rethink needs, and consequently reduce both waste volumes and carbon footprint measurably. The UAE's plastics regulations have provided clear direction, and Avani's role is to make compliance practical, reliable, and impactful.

In 2022, MBRIF, operated by Emirates Development Bank, provided Avani Eco Middle East with a government-backed guarantee of AED2.5 million under its Guarantee Scheme. This support has enabled Avani to localize manufacturing in the UAE, invest in research and development, expand its product portfolio, and build the supply resilience needed to serve an expanding base of corporate and SME customers.