Meed | Saudi water projects momentum holds steady

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.

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Jennifer Aguinaldo

Exclusive from Meed

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22 September 2026
Oman tenders Thumrait Industrial City infrastructure
22 September 2026
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Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

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Yasir Iqbal

Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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Yasir Iqbal

Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

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Yasir Iqbal
Kuwait halves drilling contractor pool
22 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.