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Transmission projects drive Saudi water sector growth

16 September 2025

 

Saudi Arabia’s water sector is on track for a strong year, driven by a surge in pipeline activity. 

The market continues to be dominated by transmission projects, reflecting the kingdom’s focus on expanding networks to deliver water from supply facilities to cities and industrial hubs. 

So far in 2025, $8.3bn of water contracts have been awarded, with pipelines accounting for $5.1bn, or more than 60% of total awards.

Recent activity indicates that pipeline growth goes beyond awarded contracts, with major tenders pointing to more work ahead.

Pipeline activity

In September, Water Transmission Company (WTCO) opened bidding for the construction of two major water pipelines that will deliver over 1.38 million cubic metres a day (cm/d) of water across central and western Saudi Arabia. 

The Jubail-Buraidah project, scheduled to begin construction in 2027, comprises approximately 348 kilometres of pipeline with a transmission capacity of 840,650 cm/d.

The Ras Mohaisen-Baha-Mecca independent water transmission system project, which aims to supply the cities of Mecca and Al-Baha with desalinated water, has a maximum design flow rate of 542,000 cm/d. It requires a pipeline approximately 325km long, including four pumping stations. Both projects are being developed under the public-private partnership (PPP) model.

Saudi Arabia also has even larger independent water transmission pipeline (IWTP) initiatives under way. 

One such project, valued at $2.3bn, also linking Jubail and Buraidah, spans 587km and will carry 650,000 cm/d. In June, the local Mutlaq Al-Ghowairi Contracting Company secured the engineering, procurement and construction contract for this project.

Pipeline activity is set to dominate in the short to medium term, with $6.9bn of projects under bid evaluation related to transmission networks, more than 60% of all bids. 

This includes the Alshuqaiq to Jizan water transmission system: phase 4, for which an award is expected to be made by the end of the year, having first been tendered in 2023. 

The project, valued at $3bn and procured by WTCO, will require a water pipeline of 523km in length with a capacity of 600,000 cm/d.

Broader sector

While pipelines clearly dominate, the wider water sector in 2025 is showing robust performance. Total awarded contracts in the sector stand at $8.3bn to date, highlighting sustained investment. 

For context, total contracts awarded were $15.5bn in 2023 and $15.5bn in 2024, placing this year on track for another significant period of sector activity.

Other segments continue to attract notable investment, with desalination projects contributing $2.4bn and water treatment plants accounting for $428m of awards so far.

In June, construction work began on the second phase of the Shuaibah seawater reverse osmosis (SWRO) desalination plant, following the appointment of Al-Fatah Water & Power as the main contractor.

Located on the Red Sea coast south of Jeddah, the $521m project involves the construction of a SWRO desalination plant, with a capacity of 545,000 cm/d, over an area of 25 hectares.

In September, a consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding won a $500m (SR1.875bn) contract to develop an industrial wastewater treatment plant in Jubail Industrial City 2, located in Saudi Arabia’s Eastern Province.

The project follows a concession-style model, similar to a PPP, where the developer consortium invests in building and operating the wastewater plant over a 30-year period. Construction is expected to begin by the end of the year.

Key players

Driving the market forward are a handful of key players, including Water Transmission & Technologies Company (WTTCO), which has awarded five contract awards worth $1.7bn in 2025.

Saudi Water Partnership Company (SWPC) is also active at the top end, with three contracts valued at $2.75bn, often implemented under PPP models. 

Saudi gigaproject developer Diriyah Company awarded one contract this year: a $1.1bn deal for a utilities relocation package for the King Saud University project located in the second phase of the Diriyah Gate development (DG2).

The contract was awarded to the joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

The deal involves the construction of several water infrastructure projects, including a district cooling plant, water storage facilities, a sewage treatment plant and irrigation water storage tanks.

Saudi Water Authority, meanwhile, accounts for 20 awarded projects worth $1.46bn, reflecting its focus on more localised or smaller-scale works, as is the case with several other entities.

The split of a few large, high-value megaprojects versus a larger number of smaller, lower-value contracts suggests opportunities for both top-tier players delivering megaprojects and mid-tier contractors participating in more localised or bundled works.

Looking ahead, $26.9bn of water projects are currently out for tender, suggesting significant activity in the years ahead, with water pipeline work ($11.9bn) continuing to lead the way.

MEED’s October 2025 special report on Saudi Arabia also includes:

> ECONOMY: Riyadh looks to adjust investment approach
> BANKING: New funding sources solve Saudi liquidity challenge
> OIL & GAS: Aramco turns attention to strategic projects
> GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
> POWER: Saudi Arabia accelerates power transformation
> CONSTRUCTION: Saudi construction pivots from gigaprojects to events
> TRANSPORT: Infrastructure takes centre stage in Saudi strategy

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Mark Dowdall

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