"Waste Economics" as a.....

"Waste Economics" as a Lever for Sustainable Growth in the MENA Region (Yemen Case Study)

​Analytical Introduction: From Environmental Crisis to Financial Drain

​The World Bank’s 2026 report reveals a startling economic reality: the Middle East and North Africa (MENA) region is not only losing its environment but is also hemorrhaging approximately $7.2 billion annually due to poor waste management. This figure goes beyond mere cleaning costs; it represents a "lost opportunity cost" that could have stimulated the industrial, agricultural, and energy sectors.

​I. Dissecting the Regional Waste Crisis (Key Figures from the World Bank)

​The Collection-Recycling Gap: The report highlights a major paradox; while the region successfully collects 80% of its waste, it fails to invest in more than 90% of it, with the majority ending up in unsanitary landfills.

​The Hidden Cost: Waste production, which exceeds the global average, exerts immense pressure on already fragile infrastructure, threatens the tourism sector, and leads to marine pollution—making the Mediterranean among the most plastic-polluted seas in the world.

​The Economic Viability of Change: Analysis confirms that simply reducing waste production by 1% could save the region an estimated $150 million annually.

​II. The Situation in Yemen: Fragility Challenges vs. "Hidden Green Gold" Opportunities

​Mapping the report’s criteria onto Yemen reveals its classification among "Fragile and Conflict-Affected Situations." Here, waste is not just a health hazard but a "dormant wealth" in a country suffering from acute energy and food crises.

​Characterizing the Yemeni Context: Yemen suffers from waste accumulation in urban centers with a formal recycling rate that is almost non-existent. There is an absolute reliance on the informal sector, which focuses primarily on metals and plastics.

​The Pioneering Initiative (Lahj Plant): The Lahj Waste-to-Energy plant stands out as a practical model for the World Bank's recommendations. Supported by the UNDP, international partners (Sida and the European Union), and the private sector (Sahab Tech), this project is a breakthrough.

​Value Added: This project converted "organic waste" (which constitutes 65% of Yemen’s waste) into electricity, cooking gas, and high-quality organic fertilizer.

​Lessons Learned: The plant proved that low-cost, decentralized technology is the most suitable solution for fragile environments, providing local energy alternatives independent of complex import chains.

​III. Proposed Solutions and Strategic Pathways for Yemen

​Based on World Bank recommendations and field realities, the following pathways are proposed for Yemen:

​Adopting Decentralized (Community-Based) Solutions: Instead of waiting for costly mega-treatment plants, the "Lahj Plant" model should be replicated at the district level. This reduces transportation costs and provides energy and fertilizer directly to local communities.

​Supporting the "Micro-Circular Economy": Turning waste into jobs. Yemen can create thousands of opportunities for youth in the sorting and recycling of plastics and paper, thereby reducing the import bill for raw materials.

​Incentivizing the Private Sector (The Sahab Tech Model): Donors and government entities must provide tax incentives and investment guarantees for local companies entering partnerships to convert waste into energy or fertilizers.

​Investing in "Organic Fertilizer" for Food Security: Since the bulk of Yemen’s waste is organic, converting it into fertilizer supports Yemeni farmers, reduces reliance on expensive imported chemical fertilizers, and improves agricultural productivity.

​Analytical Conclusion

​The World Bank report presents two choices: continue enduring billions in financial losses and environmental degradation, or immediately begin investing in the 83% of waste that is recyclable. For Yemen, the "Lahj Plant" is not merely an environmental project; it is an economic blueprint proving that sustainable solutions are the most cost-effective and impactful in times of conflict.

​Prepared by:

Economic and Environmental Policy Analyst