meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi water contracts set another annual record

11 March 2025

 

Stakeholders in Saudi Arabia's water sector awarded contracts totalling $14.9bn in 2024, exceeding by 3% the previous year's figure, which set a record high.

This is a significant milestone considering that the annual value of contracts awarded in the kingdom's water sector averaged only about $6.5bn between 2018 and 2022.

A major outlier, the $4.7bn Trojena Valley dams in Neom, boosted the total value of contracts awarded in 2024. It also allowed the gigaproject developer to outperform the usual top clients, which include National Water Company (NWC) and Saudi Water Authority (SWA), formerly Saline Water Conversion Corporation (SWCC). While NWC awarded contracts valued at approximately $4bn during the year, SWA made contract awards of $3.3bn.

The sustained capital spending in the sector aligns with Saudi Arabia's 2030 National Water Strategy, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of the national urban supply, to reduce reliance on non-renewable ground sources.

The kingdom's main desalinator, boasting the world's largest water desalination fleet, SWA tendered and awarded several major water desalination contracts in 2024, despite ongoing restructuring in the water sector, which entailed transferring ownership of SWCC's existing desalination plants to sovereign wealth vehicle the Public Investment Fund.

During the year, SWA awarded the engineering, procurement and construction contracts for the Jubail and Ras Al-Khair seawater reverse osmosis (SWRO) plants, respectively worth $677m and $625m.

It also tendered the contracts for two other SWRO schemes – Yanbu 5, which was subsequently cancelled, and Shoaiba 6, which was similarly cancelled but was retendered before the end of 2024.

In addition to these, SWA awarded the contracts for several storage or reservoir projects, including the Al-Moghamas phase two strategic storage tank project and the Riyadh Southern Ring water transmission system.

NWC awarded $2.5bn-worth of contracts for the first phase of its long-term operation and maintenance (LTOM) programme. The initial phase comprises eight packages covering the treatment of 4.2 million cubic metres a day (cm/d) of sewage water for the next 15 years.

The average cost of a cubic metre of treated sewage is SR0.5, which is less than $c15, including capital and operational expenditure and electricity costs.

Local contracting firm Alkhorayef Water & Power Technologies won three contracts with a combined capacity of 2.04 million cm/d, nearly half of the awarded total. These three contracts are worth more than SR5.53bn ($1.47bn).

A consortium of France's Suez and the local Al-Awael Modern Contracting Group with its affiliate Civil Works Company (CWC) won two packages worth a combined SR1.84bn. A consortium comprising France's Veolia and Awael-CWC won a single package worth SR1.26bn. Local utility developer Miahona won one package worth SR392m.

Public-private partnerships

Shifting from awarding several public-private partnership (PPP) contracts a year, Saudi Water Partnership Company (SPWC) awarded a single contract in 2024 – the $400m Al-Haer independent sewage treatment plant (ISTP) project.

A developer team comprising the local Miahona Company and Belgium's Besix won the contract in March 2024, offering to develop the project for SR1.9407 ($c51.73) a cubic metre. Power & Water Utility Company for Jubail & Yanbu (Marafiq) subsequently joined the consortium.

The project involves the development of a water treatment plant with a capacity of 200,000 cm/d.

Despite widespread expectations to the contrary, SWPC did not manage to award contracts in 2024 for two of its much-anticipated independent water projects (IWPs) and one independent water transmission pipeline (IWTP) scheme.

In April 2024, SWPC received two bids for a contract to develop the 300,000 cm/d Ras Mohaisen seawater reverse osmosis IWP. Spain’s Acciona and a team led by Saudi utility developer Acwa Power submitted bids for the contract.

SWPC eventually selected the Acwa Power-led team as the preferred bidder, but the signing of the water-purchase agreement only took place in February 2025.

In September 2024, SWPC received a single bid from a team comprising Acwa Power, Haji Abdullah Alireza & Company (Haaco) and AlSharif Contracting & Commercial Development for the Jubail 4 and 6 IWP located in the Eastern Region.

Although the bid evaluation was completed in December, the offtake agreement for the 600,000 cm/d plant has yet to be signed.

Despite several delays last year, projects activity at the start of 2025 suggests the possibility of a return to the higher levels seen by SWPC in previous years.

In January, it tendered the contracts to develop and operate two ISTP projects in the kingdom. Located in Mecca, the first scheme, the Arana ISTP, will have an initial capacity of 250,000 cm/d, expandable to 500,000 cm/d.

The second scheme, the Hadda ISTP, will also be located in Mecca and will have an initial capacity of 100,000 cm/d, expandable to 250,000 cm/d.  

The scopes of work include treated sewage effluent (TSE) re-use systems consisting of transmission pipelines and TSE tanks.

Expected to be operational by 2028, both projects will be implemented on a 25-year build, own, operate and transfer model. SWPC expects to receive bids for the contracts by 5 May.

Earlier in March 2025, SWPC awarded the $2.2bn contract to develop the Jubail-Buraydah IWTP project to a team comprising local companies Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company.

The 587-kilometre pipeline will be able to transmit 650,000 cm/d of water and will be developed at a levelised cost of SR3.59468 a cubic metre.

2025 outlook

Last year, NWC, which provides water distribution, sewage collection and wastewater treatment services throughout Saudi Arabia, sought interest for the second phase of its LTOM programme, which resembles a build-operate-transfer structure and risk allocation. This phase is divided into 10 packages encompassing 116 existing sewage treatment plants.

There is an expectation that SWA, along with Water Transmission Company (WTCO), will continue to engage the market with new tenders.

In December, WTCO initiated the prequalification process for the Ras Mohaisen-Baha-Mecca independent water transmission system project.

It is also continuing the bid evaluation process for a contract to build phase four of the Al-Shuqaiq to Jizan water transmission system. Estimated to be worth $2.9bn, the project is split into four packages that include pipeline supply, water transmission pipelines, pumping stations and strategic reservoirs.

Having prequalified companies that can bid separately for seven ISTPs and five water projects in November last year, there is an expectation that SWPC will issue the first tenders for this project in 2025.

It prequalified 53 companies to bid for the seven ISTPs, which have a total combined capacity of 700,000 cm/d, and 41 to bid for the five IWPs, which have a total combined capacity of 1.7 million cm/d. The tenders for these projects are expected to be issued over two years, until 2026. 

Project finance

With so many independent water contracts under execution and a robust pipeline of upcoming work, the liquidity of the mostly local banks that are providing project finance could become an issue, experts say.

“Banks are facing liquidity issues in terms of debt-versus-loan ratios,” says an executive with a Saudi Arabia-headquartered infrastructure investment group.

He adds that since some Saudi banks have relatively low US dollar reserves, the market will likely see a mix of Saudi riyal and US dollar financing being offered for new projects.

“Lending rates are already up from previous projects such as the Jubail 4 and 6 IWP and the Jubail-Buraydah IWTP. It will be interesting to see how bids develop this year,” he tells MEED.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13467032/main0500.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc weighs early engagement for Umm Shaif expansion

    21 October 2026

     

    Adnoc Offshore, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), is considering an early engagement exercise with contractors for a major project covering the next expansion phase of the Umm Shaif oil and gas field offshore Abu Dhabi.

    The early engagement round with contractors will precede Adnoc Offshore issuing the main tender for engineering, procurement and construction (EPC) works on the Umm Shaif long-term development plan 2.1 (LTDP-2.1) project, according to sources.

    MEED previously reported that Adnoc Offshore completed the expression-of-interest exercise with contractors for the two main EPC packages of the Umm Shaif LTDP-2.1 project in June this year.

    The project’s primary objective is to maintain Umm Shaif’s oil production capacity at approximately 390,000 barrels a day (b/d), while enabling peak output of up to 430,000 b/d.

    The project includes the construction of a new combined artificial island at Umm Shaif, equipped with drilling, processing, utilities and supporting infrastructure. It also encompasses the installation of an optimised crude-stabilisation train at Adnoc’s existing Das Island facilities.

    Located about 150 kilometres northwest of Abu Dhabi city, Umm Shaif is one of Adnoc’s oldest offshore oil-producing assets. In 2022, the company marked the 60th anniversary of the UAE’s first export of Umm Shaif crude, which took place in July 1962.

    Umm Shaif sits within Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, which was previously operated by former Adnoc Group companies Adma-Opco and Zadco.

    Between March and April 2018, Adnoc awarded a 10% stake in the Umm Shaif and Nasr offshore block to Italy’s Eni, 20% to France’s TotalEnergies and 10% to China National Petroleum Corporation. Adnoc retained the majority 60% interest.

    The operators produce about 460,000 b/d of oil from the Umm Shaif and Nasr block.

    Project scope of work

    Adnoc Offshore has divided the EPC scope of work on the Umm Shaif LTDP-2.1 project into two packages.

    The offshore package covers the construction of three water-injection wellhead towers, an electrical submersible pump wellhead tower, a riser platform, a manifold tower, two flare towers, offshore bridges and supporting bridge structures. Additional offshore works include the installation of well fluid flowlines, a main oil pipeline, water injection pipelines, gas export lines and subsea cable systems.

    The onshore package covers the construction of facilities on Umm Shaif Island, including a three-phase separation system comprising two processing trains, each capable of handling 135,000 b/d. The facilities will also include two associated-gas compression trains and gas dehydration units, each rated at 275 million cubic feet a day. Supporting infrastructure includes produced-water treatment systems, water-injection facilities, utilities, process buildings and associated tie-in works.

    Australia-headquartered Worley has performed front-end engineering and design (feed) work on the Umm Shaif LTDP-2.1 project.

    Output expansion projects

    In January 2022, Adnoc Offshore awarded a $946m contract to Abu Dhabi-based NMDC Energy (then known as National Petroleum Construction Company) to carry out EPC works on the first phase of the long-term development plan to sustain output from Umm Shaif, known as the Umm Shaif LTDP-1 project.

    The main objectives of the Umm Shaif LTDP-1 project are to maintain Umm Shaif’s 275,000 b/d crude oil production capacity, increase efficiencies and enhance the field’s long-term output potential.

    EPC works on the first phase of the Umm Shaif LTDP programme were completed in 2024, according to information obtained by regional projects tracker MEED Projects.

    Adnoc Offshore then initiated work on the second expansion phase of the long-term development plan for the Umm Shaif offshore oil field in Abu Dhabi (Umm Shaif LTDP-2), awarding US-headquartered McDermott International the main EPC contract on the project in 2024.

    The value of the contract for the Umm Shaif LTDP-2 project, which is also known as the Umm Shaif accelerated development, is understood to be $2bn. McDermott held a steel-cutting ceremony for the project on 25 May last year at its fabrication yard in Jebel Ali, Dubai.

    The core objective of the project is to increase the Umm Shaif oil field’s output from about 275,000 b/d at present to 390,000 b/d by 2027, and to sustain that level of production until at least 2036.

    ALSO READ: Adnoc announces FID on $6.2bn Umm Shaif gas cap project
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20779525/main4001.jpg
    Indrajit Sen
  • QatarEnergy and local partner win seven Brazil offshore blocks

    20 October 2026

    QatarEnergy, in a consortium with Brazil’s state energy producer, Petrobras, has won seven offshore exploration blocks in a concession licensing round organised by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP).

    The exploration blocks ANP awarded in the 6th concession open-acreage bid round are CE-M-471, CE-M-473, CE-M-475, CE-M-477, CE-M-537, CE-M-539 and CE-M-665. The blocks are located in the Ceara Basin along Brazil’s northeastern Equatorial Margin.

    QatarEnergy will hold a 30% participating interest, with Petrobras holding the majority 70% stake.

    The Equatorial Margin blocks cover about 4,700 square kilometres (sq km) and lie in water depths of about 2,000-3,600 metres.

    “The concession contracts further strengthen and expand QatarEnergy’s upstream position in Brazil and are expected to be signed in the first half of 2027,” the state energy enterprise said in a statement.

    QatarEnergy already holds working interests in producing fields and several exploration blocks in Brazil.

    Prior to winning a stake in these seven offshore exploration blocks, QatarEnergy secured a 20% equity interest in the Agua-Marinha production-sharing contract (PSC) awarded by ANP, under Brazil’s 1st cycle permanent offer round in 2023.

    Under the terms of the PSC and associated agreements, the remaining stakes in the Agua-Marinha concession are held by the operator Petrobras (30%), France’s TotalEnergies (30%) and the Brazilian subsidiary of Malaysia’s Petronas, Petroleo Brasil (20%).

    The Agua-Marinha block covers 1,300 sq km. It is located in water depths of about 2,000 metres off the coast of Rio de Janeiro in the prolific Campos Basin.

    In November 2022, QatarEnergy announced a discovery in Brazil’s Sepia offshore oil field, in which it holds a 21% interest. The announcement came less than a year after it acquired the stake.

    ALSO READ: QatarEnergy acquires stakes in Angola offshore blocks
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20779233/main.jpg
    Indrajit Sen
  • UAE firm wins Sphere Abu Dhabi LED display contract

    20 October 2026

    UAE-based audiovisual and digital signage contractor Blue Rhine Industries (BRI) has been appointed to install and commission the external LED display for the Sphere Abu Dhabi project on Yas Island.

    The firm was awarded the subcontract by the scheme’s main contractor, Alec Engineering & Contracting, a subsidiary of the UAE-based Alec Holdings. 

    The scope covers the installation of the external light-emitting diode (LED) display, known as the Exosphere, across the facade of the 112-metre-high building. 

    The award forms part of the main construction contract for the estimated $1.7bn entertainment venue, which is scheduled for completion in the third quarter of 2029.

    In May, Alec Holdings confirmed that Alec Engineering & Contracting had received the letter of award for the main construction package.

    MEED previously reported that Alec was the selected contractor and had carried out pre-construction work on the scheme.

    The project is being developed by Abu Dhabi’s Department of Culture & Tourism (DCT Abu Dhabi) in partnership with the US-based Sphere Entertainment. The parties finalised an agreement granting DCT Abu Dhabi the exclusive rights to build and operate the entertainment venue in the UAE capital, marking the first Sphere development outside the US.

    The venue is located on a plot between Yas Mall and SeaWorld Abu Dhabi.

    Designed to mirror the scale of the original Sphere in Las Vegas, the facility will have a capacity of up to 20,000 people and will host concerts, sporting events, and cultural exhibitions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20776687/main.jpg
    Yasir Iqbal
  • Eni completes $1bn Libya gas project

    20 October 2026

    Register for MEED’s 14-day trial access 

    Libya’s Mellitah Oil & Gas Company, a joint venture of Libya’s National Oil Corporation (NOC) and Italian oil and gas company Eni, has achieved mechanical completion on its Bouri gas utilisation project (GUP).

    In a statement, Eni said that start-up procedures are currently under way, enabling the recovery of associated gas produced from the Bouri field, which is located in Libya’s western offshore area.

    The main contract for the project, worth $1bn, was awarded to Italy’s Saipem in August 2023.

    The project involved the construction and installation of the new Bouri gas recovery module and related tie-in infrastructure that enables the recovery and treatment of gas that was previously flared.

    In its statement, Eni said that the project “represents one of the most significant emissions reduction initiatives in Libya’s energy sector”.

    It also said that it would contribute to improving the environmental performance of the country’s production system by reducing greenhouse gas emissions by approximately 1.5 million tonnes of carbon dioxide a year.

    The recovered gas will be supplied to the domestic market, adding about 700 million cubic metres a year and helping meet demand from the power generation sector.

    The project will also support additional gas volumes available for export to Europe through the GreenStream pipeline.

    Eni said: “The start-up of the Bouri GUP confirms the joint commitment of Eni and NOC to the development of Libya’s energy sector through initiatives that combine production growth, operational efficiency and environmental stewardship.

    “The project is part of a broader strategy aimed at enhancing the value of the country’s gas resources while reducing the emissions intensity of upstream activities.”

    Other key projects currently under way in Libya include the A&E Structures Project, which is focused on bringing new offshore gas resources onstream for both the domestic market and exports, as well as initiatives aimed at upgrading and optimising gas production and transportation infrastructures.

    Eni has been present in Libya since 1959, and the company’s equity production in the country in 2025 amounted to approximately 162,000 barrels of oil equivalent a day.

    The Bouri offshore field is part of Libya’s Block NC-41, located 120 kilometres north of the Libyan coast in the Mediterranean Sea.

    It was first discovered in 1976 at a depth of 8,700 feet. It is estimated to contain 4.5 billion barrels in proven recoverable crude oil reserves and 3.5 trillion cubic feet of associated natural gas, with an annual production potential of 6 billion cubic metres.

    The first development phase, costing nearly $2bn, was completed in 1990.

    This was immediately followed by a second development phase, which entailed drilling 55 new wells and constructing three additional platforms. Production began from the oil platforms DP4 and DP3 in August 1998.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20770288/main3529.jpg
    Wil Crisp
  • Diriyah Company tenders East Wadi bridge

    20 October 2026

     

    Saudi Arabia’s Diriyah Company has invited contractors to bid on the construction of the DG II East Wadi Bridge, a key crossing within Riyadh’s Diriyah master development.  

    The bridge will provide an arterial road connection linking the Diriyah Gate Phase 2 (DG II) Infrastructure Package 1 and Package 2 zones.  

    The project scope involves the construction of a 100-metre clear-span, 44-metre-wide, single-span post-tensioned concrete bridge structure with integrated abutments and four architectural towers.  

    The contract also encompasses approach slabs, access roads, pavements, associated earthworks, architectural finishes and cladding, mechanical, electrical and plumbing installations, utility interfaces, bridge parapets, vehicle restraint systems, waterproofing, testing and commissioning, and associated temporary works.  

    The client will supply the detailed engineering design, and the selected contractor will develop the construction methodology.

    Diriyah Company issued the prequalification tender on 14 September, with submissions due by 10 December.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20769223/main.png
    Yasir Iqbal