Question

Government strateg to increase the participation to GDP of the business : recycle unwanted clothes and textiles to new products of clothes and textiles

In Oman

Answer 1

Solution:

The GDP of any country is an extremely important parameter to measure the growth of the economy of that country. Oman is strategizing on investing in the recycling of clothes and textiles to help these businesses contribute to the GDP of the country. The recycling market for textile products is huge in Oman and has the potential to grow with roughly 7-8% CAGR given the size and opportunity of the market. The global recycling market is growing as well and is a huge market to enter for any organization. If the government can subsidize these recycling businesses then the government would encourage the concept of circular economy which is extremely beneficial for smaller economies to use their resources effectively with the use of recycling of products to build new ones. Thus, this business has a huge potential to generate revenues helping the participants to the GDP of the country.

The recycling industry is in very much demand because of an increase in consumer spending which makes room for more purchases from consumers and hence more opportunity to generate waste by the consumers. Thus, managing this waste effectively and efficiently is extremely important. Hence, the importance of recycling comes into the picture. Recycling is one of the huge industries. The industry as of 2017 is estimated to be valued at 265 billion US dollars and is expected to grow to 377 billion US dollars by 2023. The growth opportunity measured across different countries and regions would increase even further.

The industry is growing at a rate of approximately 6.2% CAGR. Also, the rate at which the industry will grow remains healthy. With more waste being generated per capita, there is a huge opportunity in this industry for new players to enter and capture the unsaturated market. This industry is bound to grow because of the amount of waste that is generated which can be recycled to produce new products. Hence, the scope of recycling and reusing is extremely high. This is also known as a circular economy where we use the same resources with the help of recycled materials hence reducing the waste generated.

The industry in Oman is growing with a healthy growth rate. There is an estimate of 420000 MT of waste being generated in Oman of which only 4% is being recycled and another waste is dumped into landfills. Hence, 4% of 420000 MT is a very low amount. This fact in itself can give us a rough picture of the state of the recycling industry in Oman. Hence, there is a significant market to enter for players to capture this unsaturated market.

Hence, this is an overview of the recycling market and how Oman's market is lucrative given the opportunities in the region.