Paper waste represents a considerable proportion of the total waste, and the increased paper recycling would provide economic and environmental benefits. The present study was conducted to assess the magnitude of the problem of paper waste in the Kingdom of Saudi Arabia [KSA], in particular the industrial paper waste, and the feasibility of its recycling. Data were collected form 50 enterprises in Jeddah printing and publishing newspapers and books, processing cardboards and manufacturing paper products, as related to their paper use, paper waste and recycling issues, as well as from the enterprises processing paper waste in KSA. Results showed that industrial paper waste represents nearly 4.2% of all the paper waste in the country and satisfies, only, one-third of the requirement of the currently existing paper recycling mills, while the rest is obtained from the paper waste of the municipal solid waste [MSW], leaving nearly 950,000 tons of paper waste for export. However, the considerable local requirements of card paper and other paper products would encourage the local recycling of such paper wastes instead of their export. It has been recommended to expand the paper waste recycling industry in KSA to consume the local paper wastes, as well as other paper wastes that might be imported from the neighboring Gulf countries.