As the concept of the <a href="https://www.thenationalnews.com/business/economy/2023/10/07/uae-launches-global-initiative-to-decarbonise-waste-management-and-circular-economy/" target="_blank">circular economy</a> gains prominence in the Middle East, government policies and private sector investments have fuelled the expansion of <a href="https://www.thenationalnews.com/news/uae/2024/05/17/how-ai-is-helping-to-increase-plastic-recycling-rates-in-the-uae-and-across-the-world/" target="_blank">plastic recycling</a> in the region over the years. A circular economy promotes the reuse and regeneration of materials or products, especially as a means of continuing production in a sustainable or environmentally friendly way. To tech entrepreneur Maxim Kaplevich, this trend towards reducing plastic use is an opportunity to address the global challenge of waste collection and bring in <a href="https://www.thenationalnews.com/podcasts/business-extra/2024/03/22/business-extra-ramadan-edition-how-can-ai-provide-solutions-to-improve-our-lives/" target="_blank">AI solutions</a> for sustainability, albeit in a novel way. In 2022, he brought his vision to life by founding his company, Sparklo in the UAE. The idea had been brewing in his mind for the past five years, and now it was finally a reality. “I first came up with the idea for Sparklo about five years ago, inspired by the need to improve existing recycling systems and focus on positive user motivation. Climate change and plastic pollution are pressing global issues, and current methods of addressing them are insufficient and urgently need attention,” Mr Kaplevich, who is also the company's chief executive, tells <i>The National</i> in an interview. He says Sparklo’s approach is unique in that it centres on motivating people through rewards, rather than relying on measures such as levying deposit charges, seen in countries such as Germany and the Scandinavian nations. “While these countries implement deposit systems to encourage bottle returns, our strategy focuses on positive reinforcement, rewarding users with incentives they can use for future purchases.” This approach has proven effective so far, he adds. “Since launching in the UAE in late 2022, we have installed over 200 Sparklomats, collecting over 31 million bottles and cans and saving more than 3000 tonnes of CO2 emissions.” Sparklomats are reverse vending machines, which are conveniently placed all around the city, including Dubai and Abu Dhabi in the UAE, as well as in Oman, Qatar, and Saudi Arabia in the Mena region. These machines allow users to simply drop in empty plastic bottles, or aluminium cans, earning reward points for every item through Sparklo’s mobile app. After the plastic bottles and aluminium cans enter a Sparklomat, they are transported and sold to recycling centres, where they are sorted, cleaned, and transformed into raw materials for use in packaging, consumer goods, clothing, and many other items. Sparklo has its own warehouse in Ras Al Khaimah, where all the Sparklomats are manufactured. Mr Kaplevich is confident that he is building a robust business to ensure its competitive advantage endures. “Sparklo adopts a unique approach by focusing on positive motivation. People are more likely to recycle when they receive something in return. Our users earn rewards for recycling, which can be redeemed for future purchases,” he explains. “This strategy not only encourages bottle returns but also makes recycling an enjoyable and accessible part of a sustainable lifestyle. It’s this approach that sets us apart from other players and attracts those looking for innovative recycling solutions.” For instance, he says, the company has recently partnered with Yango, which allows users to earn discounts on taxi rides by depositing bottles. The company has also partnered with Dubai Municipality, where recycled plastic is used to produce uniforms for sanitation workers. Additionally, Sparklo is also collaborating with Adnoc Distribution, Rebound, Dulsco, Imdaad, and the Environment Agency Abu Dhabi, as part of the EAD’s Mission to Zero campaign. Single-use plastics are widely prevalent in our daily lives. Compounded by its widespread use, the non-biodegradable nature of plastic has led to a significant environmental crisis. Millions of tonnes of plastic waste are accumulating in cities, landfills, and oceans, posing a serious threat to the environment. Estimates suggest about 13 million tonnes of plastic enter the world’s oceans each year. In response to this pressing issue, plastic recycling has emerged as a crucial green initiative in the Middle East, as well as globally, to reduce the environmental impact of waste. The UAE is making significant strides in reducing single-use plastics. The government issued a nationwide ban on single-use plastics <a href="https://www.thenationalnews.com/uae/2024/03/14/dubai-can-saves-18-million-bottles-in-two-years-in-the-battle-against-single-use-plastics/">earlier this year</a>. Single-use plastic bags are now banned across all emirates, while it will be prohibited to import plastic cutlery, drinks cups, styrofoam and boxes from January 1, 2026. The market size of recycled plastic in the Middle East and Africa is forecast to hit $5.1 billion by 2028 from $3.05 billion in 2020, growing at a compound annual growth rate (CAGR) of 6.6 per cent between 2021 and 2028, according to a report by Data Bridge Market Research. Increasing awareness of the detrimental effects of plastic disposal and government regulations regarding plastic waste disposal are key factors that will drive the sector’s growth. Additionally, increasing demand for recycled plastic within the electrical and electronics industry, as well as the growth and expansion of various end-user verticals, are also driving the growth, it adds. According to Mr Kaplevich, his company is tackling the core issue in recycling: the lack of proper infrastructure. “By providing easy-to-use facilities in convenient locations where people live, shop, and travel, we are effectively collecting bottles and addressing global plastic pollution at its source.” Many environmental initiatives around the world address the consequences of an underdeveloped collection and recycling system, rather than tackling the root cause, he adds. “Projects that focus on cleaning oceans, rivers, or beaches are certainly commendable, but they don’t address the ongoing issue of pollution at its source. Pollution originates with human consumption, and that’s why Sparklo is focused on addressing this by creating convenient, easy-to-use collection facilities where people live, shop, and travel.” The company’s goal is to collect plastic bottles and recyclables in the Mena region and beyond, thereby helping to tackle global plastic pollution. “Sparklo's mission is to make recycling as easy and enjoyable as grabbing a cup of coffee, seamlessly integrating it into everyday life while addressing the root causes of environmental issues.” Sparklo currently operates over 300 reverse vending machines across the Mena region, including 200 in the UAE, collecting recyclables that are then processed through its regional partners. The company says its software and hardware solutions use artificial intelligence and machine learning to optimise recycling processes. “Most reverse vending machines worldwide use bar codes to determine whether the user gets a refund. What truly differentiates Sparklo’s system is our AI-based recognition technology, which allows Sparklomats to accept all types of bottles, regardless of whether they have labels or bar codes,” Mr Kaplevich explains. Since its launch, Sparklo has experienced remarkable growth, with over 185,000 users joining the Sparklo app in the UAE alone. “Our results in the UAE demonstrate that this strategy works. Currently, we collect almost 200,000 bottles and cans daily.” “In less than two years since 2022, we have expanded our user base from zero to over 230,000 across the Mena region. This rapid growth is a testament to the strength of our mission and the trust our users place in our innovative approach to recycling.” The company is privately funded, primarily through personal investments from the founder, along with contributions from Mena-oriented private investors who are supporting the global expansion of its UAE-based technology. While the company didn’t disclose specific funding numbers, it says it has adequate funding to install 10,000 Sparklomats. Going forward, Sparklo aims to install over 100,000 Sparklomats globally and collect five billion bottles by 2030. Currently, Sparklo operates in more than 10 countries, including the UAE, Saudi Arabia, Oman, Qatar, Brazil, Vietnam, India, Thailand, Kazakhstan, and Georgia. “Although our primary focus is the MENA region, we are also poised to explore new markets in Latin America and Asia,” Mr Kaplevich concludes. It currently employs over 200 people and plans to expand its team further in the future. <b>What already successful start-up do you wish you had started?</b> Lately, I’ve been really into Whoop and ended up getting their wristband. It provides amazing insights into why we feel the way we do, our mood, and how we should take care of ourselves. It’s such a fantastic project that delivers a wealth of data about our health and how different situations and lifestyles impact us. The team behind it is doing an incredible job, and I often find myself wishing I had started it myself. <b>What new skills have you learnt from launching your venture?</b> One skill every start-up founder picks up is stress management, since you'll face a lot of setbacks before hitting your goals. But right now, the skill I value most is effectively sharing information and ideas across the team. This can make a huge difference in how your team performs and the results you get. I’ve learnt that clear and focused communication is key. I was once told that if a glass is half full and half empty, the empty half represents the ideas people come up with on their own, which can lead them in many different directions. So, making sure that information is shared clearly and purposefully is crucial. <b>If you could start all over again what would you do differently?</b> I’d place a bigger emphasis on people because they’re the most valuable asset in any company. Looking back, I see that we underestimated the importance of face-to-face interactions. We started off with a lot of online and remote work, but now I understand the significant boost that in-person meetings and office time can provide for sharing experiences and strategising. <b>What is your next big dream to make happen?</b> Right now, my personal goals align closely with those of the company. At Sparklo, our big dream is to collect all the bottles in the world. The next major milestone for us is to gather every bottle in a single country. I’d be incredibly proud of our team if we can achieve that. <b>Name: </b>Sparklo <b>Started:</b> 2022 <b>Founder:</b> Maxim Kaplevich <b>Based:</b> Abu Dhabi <b>Sector:</b> CleanTech <b>Current number of staff:</b> 200 employees <b>Investment stage: </b>Privately funded investors, founder funding