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
  • Saudi Arabia battery storage awards provide fresh lift

    24 August 2026

    Commentary
    Mark Dowdall
    Power & water editor

    The latest battery storage awards provide a welcome injection of investment into Saudi Arabia’s power market, which has seen a sharp slowdown in contract awards this year.

    Saudi Power Procurement Company’s four Group 1 storage service agreements, announced last week, are worth more than $1.16bn and cover 2,000MW of capacity.

    That is significant against the wider market. According to regional project tracker MEED Projects, Saudi Arabia recorded $19.7bn in power sector contract awards in the first seven months of 2025, compared with just $2.5bn in new awards in the same period this year.

    The battery energy storage system (bess) awards therefore account for a sizeable share of the activity recorded so far this year and provide a much-needed source of new contracting activity.

    Importantly, this is not a one-off. SPPC issued the request for proposal (RFP) for its second group of bess projects in July, covering six projects with a combined capacity of 3,000MW and 12,000MWh.

    With the Group 1 tender taking around 18 months from RFP to contract award, it is reasonable to expect Group 2 contracts to be signed in 2027.

    At the same time, the awards for six independent renewable plants under Round 7 of Saudi Arabia’s National Renewable Energy Programme (NREP), with a combined capacity of 5,300MW, are also likely to move into next year, with the latest bid deadlines now extending into September.

    Although a substantial pipeline remains in procurement, it is only once these projects move from tender to award and into construction that this pipeline translates into market activity.

    It is important that these tenders continue to progress at the pace established by the early rounds of Saudi Arabia’s renewable energy programme and now also SPPC’s independent storage provider bess scheme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18962923/main.jpg
    Mark Dowdall
  • Qatar receives bids for major power grid expansion

    24 August 2026

     

    Qatar General Electricity & Water Corporation (Kahramaa) has received bids for several packages under a major power transmission expansion project tendered in April.

    The project covers new substations at multiple voltage levels, as well as the supply and installation of 400kV extra-high-voltage power cables. The overall scheme is estimated to cost $650m.

    It is being tendered as part of Kahramaa’s 2026 procurement plan, which includes 198 tenders with a total estimated value of QR21.4bn ($5.9bn).

    According to sources, bids were submitted for the following packages on 20 August:

    • Substation packages S1 and S2, covering new 132/11kV substations (estimated cost: $200m)
    • Package S3, covering new 66/11kV substations ($50m)
    • Package S4, including a new 400/220/132kV substation, as well as upgrades and modifications to existing 400kV and 220kV substations ($200m)
    • Package S5, covering new 132/11kV substations and upgrades to existing 132kV and 66kV substations ($100m)
    • Cable packages C1 and C2, covering 400kV cables ($100m)

    Kahramaa previously stated that foreign companies not registered in Qatar would be allowed to participate in the bidding, subject to meeting specified conditions, including registration and certification requirements.

    In June, the electricity and water utility awarded contracts worth more than QR2.2bn ($604m) to expand the electricity transmission network in the country’s western region.

    The engineering, procurement and construction (EPC) works will support the integration of the 2GW Dukhan solar power project into Qatar’s national electricity grid. The scope includes new and upgraded substations, as well as the installation of underground cables and overhead transmission lines.

    Kahramaa said contracts were awarded to local firm Voltage Engineering, Turkiye’s Best & Betas Consortium, India’s Larsen & Toubro and South Korea’s LS Cable.

    Of Kahramaa’s 2026 procurement plan, electricity transmission projects account for QR8.9bn ($2.4bn) and include the construction of new 400/132kV substations in Al-Wukair and Al-Mashaf, as well as the expansion of 400kV substations at Ras Laffan.

    These also cover the installation of 132kV underground cables between Al-Sailiya and Al-Rayyan over a 24-kilometre route, as well as upgrades to the 400kV and 220kV networks.

    Additionally, there are 64 planned electricity distribution projects managed by the Electricity Distribution Department that cover the medium-voltage and low-voltage networks throughout Doha and the regional municipalities. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18962223/main.jpg
    Mark Dowdall
  • Maaden closes $1bn term loan and credit facility

    24 August 2026

    Saudi Arabian Mining Company (Maaden) has announced the closing of its inaugural international syndicated term loan and revolving credit facilities, worth a total of $1bn.

    The $500m international term loan facility will support Maaden’s growth agenda and general corporate purposes, including funding growth projects across its portfolio.

    The $500m international revolving credit facility, which is expected to remain undrawn, provides additional committed funding capacity “as Maaden continues to scale its business and execute its long-term growth strategy”.

    The transaction “was met with strong support from the international banking market, attracting participation from a diverse group of leading international banks across key global financial markets”, including the US, Canada, Europe, China and Japan. The facilities were oversubscribed, Maaden said.

    ALSO READ: Maaden and Aramco sign deal to create joint venture

    “The level of demand reflects the global banking community’s confidence in Maaden’s financial strength, strategic direction and ambitious growth plans,” the Saudi state miner said in its statement.

    “The facilities mark another significant milestone in Maaden’s funding journey – further diversifying its sources of funding and broadening its access to global capital providers as the company continues to advance its long-term growth ambitions.

    “Maaden continues to make significant progress across its growth pipeline, expanding production, advancing major projects and accelerating exploration as it builds a world-class mining company at the heart of Saudi Arabia’s economic transformation.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18962086/main4516.jpg
    Indrajit Sen
  • Dubai inflation slows to 5.3% in July

    24 August 2026

    Dubai’s annual inflation rate slowed to 5.3% in July, down from 5.7% in June, as a decline in transport costs eased pressure on consumer prices, according to Emirates NBD.

    The bank said the slowdown supported its view that price growth peaked at mid-year, and it expects inflation to continue easing through the rest of 2026. Monthly price growth slowed to 0.1% in July, from 0.4% in June, the weakest pace since February.

    Transport was the clearest sign of the moderation. Annual price growth in the category slowed to 11.9% in July, from 18.1% in June, as transport costs fell 3.7% over the month. Fuel and lubricant inflation eased to 24.1% year on year, from 48.3%, tracking a decline in local petrol prices.

    Petrol remains the main swing factor in the emirate’s inflation. Transport contributed 1.1 percentage points to headline inflation in July, down from 1.7 percentage points in June. Emirates NBD said the relief may prove temporary, with Super 98 petrol prices climbing 5.9% in August to leave them 33.8% higher than a year earlier. The bank expects headline inflation to edge higher in the August figures before easing again later in the year.

    The UAE deregulated petrol and diesel prices in 2015 and reviews them monthly against global prices, meaning changes in global fuel costs pass through to consumers quickly. Transport, which includes fuel, accounts for 9% of Dubai’s consumer price index basket.

    Housing remained the largest contributor to inflation even as its impulse faded. Housing and utilities, which account for about two-fifths of the basket, added 2.8 percentage points to headline inflation. Annual price growth in the category slowed to 7.0%, from 7.4% in January.

    Food inflation edged up to 7.8% year on year, from 7.6% in June, which the bank attributed to lingering supply-chain disruption from the regional conflict. Inflation in restaurants and hotels accelerated to 4.5% year on year, from 1.7% in June.

    Emirates NBD forecasts inflation of 2.9% by year-end but said risks to that projection were tilted to the upside, given lingering pressures in food and housing.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18961735/main1839.jpg
    Colin Foreman
  • Libya oil project on track for 2027 completion

    24 August 2026

     

    The project to develop a workers’ camp at Libya’s Erawin oil field is on track for completion next year, according to industry sources.

    The project, estimated to be worth about $50m, is being executed by the Libyan oil services company Al-Saraya Al-Hamara, headquartered in the city of Sebha.

    The Libyan company was awarded the contract in February 2025.

    The scope of the project includes:

    • Construction of an accommodation camp
    • Construction of the camp maintenance warehouse
    • Construction of the camp office
    • Construction of a fire brigade shelter
    • Construction of a kitchen and mess hall
    • Construction of a mosque
    • Construction of a laundry room
    • Construction of a clinic
    • Construction of parking facilities
    • Installation of a fire and gas system
    • Installation of a power generator
    • Construction of associated facilities

    The client on the project is Zallaf Libya Oil & Gas Exploration & Production Company.

    Zallaf Libya Oil & Gas Exploration & Production Company was established in Libya in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation.

    The Erawin field development project is located about 800 kilometres south of Tripoli and 100km southwest of the El-Sharara field.

    Libya shipped its first cargo of crude from the Erawin oil field in November 2023.

    The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.

    Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the early production facility project in 2019.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18953632/main.jpg
    Wil Crisp