meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi water projects momentum holds steady

12 September 2023

This package on Saudi Arabia’s water sector also includes: 

> Riyadh holds water pipeline bid clarifications
> Red Sea awards Amaala utility package
> Five banks agree $545m Rabigh 4 financing
> Saudi Arabia extends desalination bid deadline
> Albawani joins Jafurah water developer team
> Saudi Arabia evaluates Al-Haer wastewater bids

 

The Saudi water market remains the region’s largest, with $30bn-worth of projects in varying planning and procurement stages.

The sector is expected to expand further with multibillion-dollar capital expenditures allocated by the potable water and wastewater collection and treatment firm, the National Water Company (NWC), and Saline Water Conversion Corporation (SWCC), the world’s largest producer of desalinated water.

This offers great opportunities for water asset developers and engineering, procurement and construction (EPC) contractors aiming to capture a share of the kingdom’s burgeoning water projects market.

SWCC, NWC and the principal buyer of water, Saudi Water Partnership Company (SWPC), awarded over $32bn of water infrastructure and utility projects between 2013 and 2022, according to MEED Projects data.

Driving investment within the sector is the need to improve water security, a key component of Saudi Vision 2030, along with rising demand due to population and economic expansion.

Reducing the carbon footprint of the kingdom's existing seawater desalination fleet, dominated by plants running on older technologies, is also contributing to the urgency to build more energy-efficient water infrastructure.

This is matched by moves to make potable and wastewater water transmission and distribution more efficient and to minimise leakage and non-revenue water. The kingdom also needs to expand its overall water storage capacity to improve its emergency response.

Simultaneously, like most of its groundwater-scarce neighbours, there is growing pressure to adopt treated sewage effluent for agricultural and industrial applications to reduce demand for seawater desalination and comply with the kingdom’s circular carbon economy approach.

“It is an interesting time for the Saudi water sector,” says a Dubai-based water expert.

“There are many projects in the tendering phase, but there is also some degree of uncertainty in terms of how the roles of the key stakeholders could shift [in the future].”

This stems from the years-long restructuring of the sector and last year's cabinet resolution approving the transfer of water production, transportation and storage assets owned directly or indirectly by SWCC to Water Solutions Company, a wholly-owned subsidiary of the Saudi sovereign vehicle, the Public Investment Fund (PIF).

There is widespread expectation that SWCC will focus on research and development following the transfer of its assets to the PIF subsidiary, although this has not been formally announced. 

Diversified clients

The lengthy restructuring of the kingdom’s water sector and rapid advance of so-called gigaprojects have diversified the profile of clients in the kingdom.

Neom and its subsidiary Enowa, SWCC transmission arm Water Transmission & Technologies Company (WTTCo) and other gigaproject developers, such as the royal commissions for Riyadh City and Al-Ula, have joined the mainstream water utility companies and municipalities in tendering new water infrastructure contracts over the past year.

In terms of projects in the pre-execution phase, SWPC is the top client, with a pipeline of projects worth at least $7bn.

SWPC is mandated to procure all water infrastructure projects in the kingdom on a public-private partnership (PPP) basis, including water desalination, wastewater treatment, transmission and reservoirs.

Its latest Seven-Year Planning Statement covering 2022-28 stipulates the procurement of about 50 independent water infrastructure projects, including several in the bid stage.

SWPC’s future projects pipeline outperforms that of NWC and SWCC. Neom, Enowa, WTTCo and the Royal Commission for Al-Ula round out the top seven clients.

Riyadh rides power projects surge

Independent projects

Following consecutive awards of independent water producer (IWP) and independent sewage treatment plant (ISTP) contracts between 2019 and 2021, SWPC has recently paced out the award of new contracts.

It has only awarded one contract, directly negotiated with Saudi utility developer Acwa Power for the Shuaiba 3 seawater reverse osmosis (SWRO) project in 2022. This year, it awarded another contract for the Rabigh 4 IWP scheme, in addition to the contract to develop the kingdom’s first independent water transmission pipeline, which connects Rayis and Rabigh.

SWPC is evaluating the bids it received for the contract to develop the Al-Haer independent sewage treatment plant (ISTP), the first of the round-three projects under its ISTP programme, and expects to receive bids in October for the 300,000 cubic-metre-a-day (cm/d) Ras Mohaisen IWP.

The contract to develop the kingdom’s first independent strategic water reservoir (ISWR) project is expected to be awarded this year. The Juranah ISWR has a capacity to store 2.5 million cubic metres of water. The project is anticipated to significantly boost water security, particularly in Mecca and Medina, which host several million pilgrims annually.

EPC works

Despite moves to transfer its assets to the PIF subsidiary, SWCC cemented its reputation as the world’s largest producer of desalinated water when its fleet of 30 desalination plants reached a total combined capacity of 6.6 million cm/d in 2022.

The company is not resting on its past success, having issued successive tenders for SWRO plants using an EPC model over the past 12-18 months.

In July this year, it invited bids for the contract to build a 200,000 cm/d SWRO facility in Ras al-Khair.

This came three months after it received two bids for the contract to build the second phase of the Shuaibah water desalination plant, which has an even higher capacity of 545,000 cm/d.

Around the same time in March, SWCC tendered a contract to construct a greenfield SWRO plant in Yanbu with a design capacity of 500,000 cm/d.

SWPC last awarded a major SWRO contract in mid-2021. The giant 1 million cm/d Jubail SWRO plant is being built by a team of Metito and local firm Saudi Services for Electromechanic Works.

Before this, in late 2019, it awarded a contract to construct a 400,000 cm/d SWRO plant in Shuqaiq to a team of Spain’s Acciona and Al-Rashid Trading & Contracting Company.

SWCC, though WTTCo, has also tendered multiple water transmission projects, including pipelines around Riyadh and connecting Riyadh and Ras al-Khair, Shuqaiq and Jizan and Al-Duwadimi and Atif.

In its 2022 annual report, SWCC stated that it had achieved exceptional results in supporting the Saudi Green Initiative, reducing carbon emissions, increasing operational efficiency to above 99 per cent and saving SR1.6bn ($427m) in operational costs.

The company also “increased local content in its operational efficiency by 61 per cent and demonstrated noteworthy patent accomplishments, innovations, studies and scientific publications”.

Innovation

New tourism-related developments, the expansion of industrial complexes and the need to limit carbon emissions are driving capacity-building and innovation.

The Red Sea development is completing the kingdom’s first private sector multi-utility project, which includes developing and operating a solar photovoltaic power plant, battery energy storage system, water desalination and treatment and waste recycling plants in one contract.

In addition to tendering major water transmission and distribution networks, Neom is also finalising the design for a zero-liquid discharge SWRO plant catering to the development. Enowa, Japan’s Itochu and France’s Veolia are expected to tender the project's EPC package soon.

The proposed state-of-the-art desalination plant will be powered 100 per cent by renewable energy and use advanced membrane technology to produce separate brine streams.

This will enable the production of brine-derived products, which will be developed and monetised downstream. The bigger plan includes establishing a brine processing complex in Oxagon, which could require an investment of between $15bn and $20bn.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11132882/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Bahrain advances utility reform

    7 November 2025

     

    In September, Bahrain’s government referred a draft law to parliament to restructure the kingdom’s electricity and water sector.

    This proposes dissolving the Electricity & Water Authority (Ewa) and transferring its assets and functions to a newly established National Electricity & Water Company, which will operate under the oversight of the Electricity & Water Regulatory Authority. 

    The reform marks the first full structural overhaul of Bahrain’s utilities sector in nearly two decades and signals a shift towards a more commercially driven model. 

    Regulatory and operational roles would be separated for the first time, allowing private sector participation under transparent licensing and tariff systems, aligning Bahrain with utility reforms seen in Saudi Arabia, Oman and the UAE.

    It comes amid a relatively subdued year for new contracts that broadly falls in line with 2024’s performance. Most significantly, Bahrain continues to move towards its two upcoming utility public-private partnership (PPP) schemes, the Sitra independent water and power project (IWPP) and the Al-Hidd independent water project (IWP).

    In August, a developer tender was issued for the main works package for the Sitra IWPP. This followed the prequalification of seven companies and consortiums, reflecting a wide range of international interest.

    The planned Sitra IWPP replaces the previously planned Al-Dur 3 and will be the first IWPP project to be awarded since the 1,500MW Al-Dur 2 IWPP was completed in 2021.

    The combined-cycle gas turbine (CCGT) plant is expected to have a production capacity of about 1,200MW of electricity, while the project’s seawater reverse osmosis (SWRO) desalination unit will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water. The main contract is expected to be awarded by the end of the year, with commercial operations set for 2029. 

    A developer tender was also recently launched for Bahrain’s first independent, standalone SWRO plant following a prequalification process that shortlisted nine companies and consortiums.

    The Al-Hidd IWP is expected to have a production capacity of about 60MIGD of potable water and be completed in 2028. It is likely to be the last IWPP for Bahrain, which aims to reach net-zero carbon emissions by 2060.

    The imminent launch of the two projects boosts Bahrain’s projects pipeline, which has experienced muted growth in the aftermath of the Covid-19 pandemic, carried by relatively small-scale projects.

    Solar PV projects

    The creation of the National Electricity & Water Company as Bahrain’s new operational entity could also support the rollout of future renewable energy schemes. 

    As a corporatised offtaker, the company will be able to enter long-term power purchase agreements (PPAs) with private developers under a more bankable framework. Currently, these are negotiated by Ewa on a case-by-case basis.

    The government recently signed a 123MWp solar PPA with the UAE’s Yellow Door Energy, highlighting growing private sector interest in the market. The project includes the world’s largest single-site rooftop solar installation and will be developed at Foulath Holding’s industrial complex in Salman Industrial City.

    Bahrain has already set a target to source 20% of its energy from renewables by 2035 and reach net-zero emissions by 2060.

    In October, Ewa also issued a tender for the development of the Bilaj Al-Jazayer solar independent power project (IPP). The planned 100MW project will be developed on a build-own-operate basis with a 25-year contract term.

    In parallel, Bahrain is broadening its long-term energy strategy beyond solar. In July, the kingdom signed a cooperation agreement with the US on the peaceful use of nuclear energy, aimed at advancing research and potential deployment of small modular reactor (SMR) technology.

    For countries like Bahrain, which has limited land availability and high energy demand growth, SMRs could offer a way to produce low-carbon, reliable baseload power without requiring vast areas of land for solar or wind farms. 

    Officials have indicated that SMRs, along with floating solar solutions, are being studied as part of a broader push to diversify energy sources and expand renewable generation capacity.

    Water and waste

    Bids for four Ewa-owned projects are currently being evaluated. This includes the construction of a new SWRO desalination plant on Hawar Island and rehabilitation works for the Ras Abu Jarjur water treatment plant in Askar. Contracts for both projects are expected to be awarded this year.

    Bahrain’s Ministry of Works (MoW) is the other client for the island-state’s power and water infrastructure-related projects. It has awarded three smaller sewage-related contracts this year.

    It is also preparing to tender the construction of a $130m sewage treatment plant in Khalifa City, which will be developed in two phases. Meanwhile, the construction of MoW’s sewerage scheme phase 2 network in Bahrain remains in the early design stage with no further updates.

    As Bahrain moves ahead with these projects, the new electricity and water law could define how future investments are structured, regulated and financed. This could reshape the kingdom’s utilities landscape for decades to come.

    MEED's December special report on Bahrain also includes:

    > ECONOMY: Bahrain’s cautious economic evolution
    > BANKING: Mergers loom over Bahrain’s banking system
    > OIL & GAS: Bahrain remains in pursuit of hydrocarbon resources
    > CONSTRUCTION: Bahrain construction faces major slowdown
    > TRANSPORT: Bahrain signs game-changer aviation deal with Air Asia

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15044915/main.gif
    Mark Dowdall
  • Masdar and OMV sign 140MW green hydrogen plant deal

    7 November 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi Future Energy Company (Masdar) has signed a binding agreement with Austrian energy company OMV to develop and operate a major green hydrogen production plant in Austria.

    The 140MW green hydrogen electrolyser plant will be Europe's fifth-largest hydrogen plant, according to Masdar chairman, Sultan Ahmed Al-Jaber.

    It will be built in Bruck an der Leitha, about 40 kilometres southeast of Vienna.

    The facility will be developed under a newly established joint venture, in which Masdar owns 49% and OMV holds the majority 51% stake.

    The agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), in the presence of Al-Jaber; Austria’s Federal Minister of Economy, Energy and Tourism, Wolfgang Hattmannsdorfer; OMV CEO Alfred Stern; and Masdar CEO Mohamed Jameel Al-Ramahi.

    It is expected that the project will reach financial close in early 2026, subject to final documentation, shareholder consent and regulatory approvals.

    Construction began in September, with operations scheduled to start in 2027.

    OMV, which already operates a 10MW electrolyser in Schwechat, will procure renewable electricity for hydrogen production and retain ownership of the output.

    Several large-scale hydrogen facilities across Europe are currently under construction.

    In 2024, Germany's Siemens Energy signed a deal with German utility EWE to build a 280MW green hydrogen electrolysis plant. This is expected to begin operations in 2027.

    Masdar and OMV previously signed a letter of intent to cooperate on green hydrogen, synthetic sustainable aviation fuels (e-SAF) and synthetic chemicals in both the UAE and central and northern Europe.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040802/main0933.jpg
    Mark Dowdall
  • Firms submit Saudi customs warehouses PPP bids

    7 November 2025

     

    Three Saudi-based firms submitted bids on 29 September for a contract to build new customs warehouses in Saudi Arabia.

    The project is being tendered as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 15 years, including the construction period.

    The bidders include:

    • Al-Drees Petroleum & Transport Services Company
    • Lamar Holding
    • Mada International Holding

    The contract scope covers the development of 13 warehouses – including the design and construction of 12 new facilities and the renovation of one – across 13 different points of entry in the kingdom, along with the maintenance of all sites.

    The contract also includes the supply of equipment, as well as logistical support and cleaning services, for all new and existing warehouses at 38 points of entry across the kingdom.

    In January, the Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), prequalified five companies to bid, MEED reported.

    The client issued the expressions of interest (EOI) and request for qualifications (RFQ) notices for the project in October last year.

    PPP plans

    In April 2023, Saudi Arabia announced a privatisation and public-private partnership (P&PPP) pipeline comprising 200 projects across 16 sectors.

    The P&PPP pipeline aims to attract both local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative supports the kingdom’s efforts to enhance the attractiveness of its economy and increase the private sector’s contribution to GDP.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040496/main.gif
    Yasir Iqbal
  • KBR selected for Iraq gas project

    7 November 2025

    Register for MEED’s 14-day trial access 

    US-based KBR has been selected by Turkiye’s Enka to provide detailed design services for its part of the broader $27bn Gas Growth Integrated Project (GGIP) masterplan.

    KBR was selected to provide the detailed design services after successfully completing the front-end engineering and design (feed) work for Enka’s central processing facility (CPF) package, according to a statement issued by the company.

    The wider GGIP project is being developed by France’s TotalEnergies along with its partners Basra Oil Company (BOC) and Qatar Energy.

    In September, Enka signed a contract to develop a CPF at Iraq’s Ratawi oil field as part of the second phase of the field’s development.

    Enka did not give a value for the contract, but it is believed to be worth more than $1bn.

    The contract covers engineering, procurement, supply, construction and commissioning (EPSCC) of the CPF for the project known as ‘Associated Gas Upstream Project Phase 2 (AGUP2)’.

    The aim of the AGUP2 project, due to start in 2028, is to process oil and associated gas from the Ratawi oil field to increase production capacity to 210,000 barrels a day of oil and 154 million standard cubic feet a day of gas.

    GGIP masterplan

    The GGIP programme is being led by TotalEnergies, which is the operator and holds a 45% stake.

    Basra Oil Company and QatarEnergy hold 30% and 25% stakes, respectively. The consortium formalised the investment agreement with the Iraqi government in September 2021.

    The four projects that comprise the GGIP are:

    • The Common Seawater Supply Project (CSSP)
    • The Ratawi gas processing complex
    • A 1GW solar power project for Iraq’s electricity ministry
    • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

    The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

    China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute EPC works to build the gas processing complex at the Ratawi field development.

    CPECC’s project team based in its office in Dubai is performing detailed engineering works on the project.

    In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

    The 1GW Ratawi solar scheme will be developed in phases that will come online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

    The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

    Separately, in June, TotalEnergies awarded CPPE an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

    Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April, worth a combined $11m, under the GGIP scheme.

    The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

    One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 b/d of oil on completion of the first phase, according to a statement by Wood.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040492/main.png
    Wil Crisp
  • Turkish contractor wins Aldar Verdes by Haven project

    7 November 2025

     

    Abu Dhabi-based real estate developer Aldar Properties has appointed Turkish firm Nurol Construction as the main contractor to build its Verdes by Haven residential complex in the Wadi Al-Safa 5 area of Dubai. 

    Aldar is developing the project in partnership with Dubai Holding.

    Verdes by Haven is a multi-building complex featuring 1,050 one-, two- and three-bedroom apartments.

    The broader Haven development will include 2,428 residential units and cover 1 square kilometre. The first phase comprises 462 residential units, including three- and four-bedroom townhouses and three- to six-bedroom villas. 

    Construction of the first phase began last year, and the project is slated for completion in the third quarter of 2027.

    The project is located opposite the Al-Habtoor Polo Resort on the Dubai-Al-Ain road.

    Dubai-based architectural firm Dewan Architects & Engineers is the lead design consultant for the project, working alongside US-based OBM International, the architectural design consultant.

    UK-based data analytics firm GlobalData predicts that the UAE construction sector will grow by 4.2% in real terms in 2025, driven by infrastructure, energy, utilities and residential construction projects. It is also estimated that projects worth more than $323bn are in the execution or planning stages in the UAE.

    The construction industry is expected to register an annual average growth of 3.8% in 2025-28, supported by investments in transport, housing and renewable energy projects. 

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15037432/main.png
    Yasir Iqbal