meed-logo

line1 line2 line3
SIGN IN / REGISTER

Sustainability drives water investments

29 December 2023

 

Growing water scarcity that could imperil long-term economic expansion plans in much of the Middle East and North Africa region continues to drive investments in improving the sector’s capacity and efficiency.

This spending covers projects to increase water desalination and water treatment capacity to meet growing demand more sustainably, as well as water transmission pipeline projects to reduce water loss and improve sanitation.

Other projects, such as reservoirs and district cooling, are also picking up as national and municipal governments work to improve water security and reduce the carbon footprint of buildings. 

Across the five sub-sectors, an estimated $22bn-worth of contracts were awarded between January and November 2023. This is nearly twice the previous year’s figure, according to data from regional projects tracker MEED Projects.

Saudi Arabia accounted for 43 per cent of the total contracts awarded, followed by the UAE at 23 per cent.

Key awards

Recent months have seen the award of several pioneering projects.

Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company (Taqa) awarded a 30-year build-own-operate-transfer (BOOT) contract for the first phase of Project Wave to a team of Egypt’s Orascom Construction and Metito in May this year. The scheme will replace the current aquifer water injection systems used to maintain reservoir pressure in all onshore oil fields in Abu Dhabi. It is expected to reduce the water injection-related energy consumption of the oil fields by up to 30 per cent.

The same month, a consortium including the local Alkhorayef Water & Power Technologies Company won a contract worth SR7.78bn ($2bn) to develop and operate the first independent water transmission pipeline (IWTP) project in Saudi Arabia. The Rayis-Rabigh scheme will be 150 kilometres (km) long and transmit 500,000 cubic metres a day (cm/d) of drinking water between the two municipalities.

Morocco’s National Office of Electricity & Drinking Water (Onee) also awarded a contract to develop and operate the first phase of a seawater reverse osmosis (SWRO) desalination plant in Grand Casablanca – the first major independent water producer (IWP) scheme in the country. A team of Spain’s Acciona and the local Afriquia Gaz and Green of Africa won the 30-year build-operate-transfer contract for the scheme, which will require a total investment of $875m.

State utility Dubai Electricity & Water Authority (Dewa) awarded the contract for its first IWP to Saudi-based utility developer Acwa Power. The Hassyan 1 IWP, which has a capacity of 180 million imperial gallons a day (MIGD), will require an investment of AED3.36bn ($914m).

Neom and its subsidiary Enowa have also awarded over $900m-worth of water utility contracts in the first 11 months of 2023, while Saudi Aramco awarded the $750m Jafurah water desalination project to a local consortium of Al-Bawani, Mowah Company and Lamar Holding.  

While the majority of the contracts awarded in 2023 were procured on an engineering, procurement and construction (EPC) basis, the largest individual contracts are schemes that are being implemented using the public-private partnership (PPP) model.

Saudi Arabia accounted for 43 per cent of the total water contracts awarded, followed by the UAE at 23 per cent

Future projects

Data from MEED Projects shows that close to $75bn of projects are in the pre-execution phase, with a third of this total already in the bidding stage.

Water transmission and pipeline projects account for about 35 per cent of the planned and unawarded projects, followed by water desalination and water treatment plants, which each have a share of approximately 25 per cent.

With its population expected to reach 50 million by 2030, Saudi Arabia accounted for more than 43 per cent of the planned and unawarded water projects in the Mena region.

Water offtaker Saudi Water Partnership Company (SWPC) plans to procure 50 independent water infrastructure projects, according to its latest Seven-Year Statement covering the years 2022-28.

In terms of water desalination capacity, SWPC plans to procure  3.5 million cm/d of capacity based on its 2022-28 plan, exclusive of the Ras Mohaisen IWP which is under bid. The Saline Water Conversion Corporation (SWCC) has also initiated several SWRO projects that are being procured using an EPC model.

Together, SWCC and SWPC, in addition to the National Water Company and its spin-off Water Transmission & Technologies Company, account for a projects pipeline of more than $20bn, or more than a quarter of the total.

Neom and Enowa are emerging as major water project clients, with each having planned projects valued at about $3bn. Enowa is the client for the planned zero liquid discharge SWRO plant in Neom, which will be developed by a team of Japan’s Itochu and France’s Veolia. The project has an estimated budget of $1.5bn.

Going forward, the largest potential client is Dubai Municipality, which has restarted a major project known as the Deep Tunnels Portfolio. The estimated $22bn scheme will be developed as a public-private partnership (PPP) initiative and will involve developing assets across the city of Dubai and Hatta.

The scheme involves the construction of two sets of deep tunnels terminating at two terminal pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta. The scheme also includes recycled water distribution systems connected to the STPs.

Qatar is also expected to resume projects activity in 2024.  In addition to the water desalination component of the Facility E independent water and power project, Qatar’s Public Works Authority (Ashghal) is expected to issue the request for proposals for four contracts that make up the South of Wakrah and New District of Doha pumping station and outfall scheme in the first quarter of 2024.

In the UAE, Adnoc and Taqa are also expected to start the procurement process for the second phase of Project Wave in 2024. As with the Mirfa seawater treatment plant, the Al-Nouf facility will be developed and maintained as a BOOT project. 

Egypt’s plan to procure renewable energy-powered water desalination plants will provide investors and local contractors with opportunities in the coming months or years. In May, the Sovereign Fund of Egypt disclosed that 17 teams and companies had been qualified to bid for the contracts to develop up to 8.85 million cm/d of renewable energy-powered desalination capacity in the country. The tender for the first phase of these projects is expected to be issued soon.

Mena power rides high into 2024

https://image.digitalinsightresearch.in/uploads/NewsArticle/11339767/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’s Misk tenders residential package

    17 April 2026

     

    Saudi Arabia’s Mohammed Bin Salman Foundation (Misk Foundation) has floated two tenders for the construction of a residential community in District 5 of Prince Mohammed Bin Salman Nonprofit City in Riyadh.

    The first tender is split into two packages, one that covers the construction of 237 villas and the other covering 223.

    The second tender covers the construction of a community centre, swimming pool, mosque and school.

    The bid submission deadline for both tenders is 27 April.

    Misk Foundation is jointly developing the project in collaboration with local real estate developer Kinan.

    The estimated SR900m ($240m) project will span an area of about 121,692 square metres.

    In March 2022, the Misk Foundation released the masterplan for Prince Mohammed Bin Salman Nonprofit City.

    Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud said in November 2021 that the Misk Foundation development in Riyadh will be the world’s first non-profit city.

    “Prince Mohammed Bin Salman Nonprofit City, which implements the digital twin model, will host academies; colleges; Misk schools; a conference centre; a science museum; and a creative centre offering a space to support the ambitions of innovators in sciences and new-generation technology, such as AI [artificial intelligence], IoT [Internet of Things] and robotics,” he said.  

    “It will also feature an arts academy and art gallery, a performing arts theatre, a play area, a cooking academy and an integrated residential complex.

    “In addition, the city will host venture capital firms and investors to support and incubate innovative enterprises to drive community contributions from around the world.”

    The consultants working on the project include Germany’s Albert Speer + Partner as master planner and architect, and UK-based Buro Happold as the engineer. The project manager for the first phase of construction is UK-based Mace.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16440697/main.png
    Yasir Iqbal
  • Saipem wins $400m of Safaniya field work from Aramco

    17 April 2026

    Register for MEED’s 14-day trial access 

    Italian contractor Saipem has announced winning two offshore engineering, procurement, construction and installation (EPCI) contracts in Saudi Arabia, worth approximately $400m, which represent Saudi Aramco’s next expansion phase of the Safaniya offshore oil field development.

    MEED recently reported that Aramco had selected Saipem for the two contracts – numbers 154 and 155 on its Contract Release and Purchase Order (CRPO) system.

    Fabrication activities for the two contracts will be executed at Saipem’s Saudi fabrication yard in Dammam, Saipem Taqa Al-Rushaid Fabricators Company, the Milan-listed company said in its statement.

    Prior to winning the contracts for CRPOs 154 and 155, Saipem also secured the contract for CRPO 156, valued at about $500m, which forms the third package in Aramco’s latest Safaniya expansion phase.

    Aramco issued the three CRPOs to its Long-Term Agreement (LTA) pool of offshore contractors in February last year, with an initial bid submission deadline of 31 July. Aramco later extended the deadline to 28 August and then again to 31 August, with LTA contractors submitting bids on that date.

    The brief scope of EPCI work on the three tenders is as follows:

    CRPO 154:

    EPCI of a water injection tie-in platform; two production deck modules (PDMs)/wellhead platforms; approximately 5 kilometres (km) of associated pipeline, with diameters of 24 inches, and approximately 15km of 15kV cables at Safaniya; hook-ups; and subsea valve skids.

    CRPO 155:

    EPCI of four PDMs; intra-field and main trunklines to shore; and jackets.

    CRPO 156:

    EPCI of a 48-inch trunkline, covering a distance of about 65km offshore and 12km onshore, from the Safaniya offshore oil field to the onshore processing facility; and associated structures such as subsea hook-ups.

    The Safaniya field is the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day. Discovered in 1951, the field is located in the Gulf waters, approximately 265km north of Aramco’s headquarters in Dhahran.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16439869/main5806.jpg
    Indrajit Sen
  • Ora Developers adds land bank to its Bayn masterplan

    17 April 2026

    Egyptian firm Ora Developers has signed a land acquisition agreement with Abu Dhabi-based developer Modon Holding to acquire an additional 4.8 million square metres (sq m) of land in the Ghantoot area between Abu Dhabi and Dubai.

    Ora Developers said that the land acquisition will increase the existing Bayn masterplan from 4.8 million sq m to 9.6 million sq m.

    The firm added that the total investment in the masterplan upon completion is expected to reach AED30bn ($8bn).

    In January, Ora Developers appointed six engineering consultancies to lead the development of the first phase of its Bayn residential community project.

    The developer appointed UK-based firm Mace to lead the overall project management.

    Canadian firm WSP will serve as the masterplan, infrastructure, landscape and water bodies design consultant, as reported by MEED in May last year.

    Another US firm, Aecom, will provide construction supervision services.

    Hong Kong’s 10 Design is the project’s architectural concept design consultant.

    Local firm Dewan Architects & Engineers is the project’s design consultant and architect of record.

    The UK’s Currie & Brown is the cost consultant.

    The first phase will offer 805 villas and townhouses, and the project is expected to be completed in 2028.

    The project will also include a neighbourhood park, sports facilities, a water park, a five-star hotel and a shopping mall.

    In December last year, Abu Dhabi government-owned contractor NMDC Group won a AED142m ($39m) contract from Ora Developers.

    The contract scope covers the execution of enabling works on the Bayn masterplan.

    The main construction works on the project's first phase are expected to begin in the second quarter of this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16439214/main.jpg
    Yasir Iqbal
  • Firms prepare best offers for Riyadh Metro Line 7

    17 April 2026

     

    Consortiums are preparing to submit best and final offers on 21 April for the design and build of Riyadh Metro’s Line 7.

    The Royal Commission for Riyadh City (RCRC) opened the commercial proposals for the contract earlier this month, as MEED reported.

    Contractors submitted their commercial proposals on 31 January.

    In February, MEED reported that the RCRC had started post-tender clarifications with bidders for the project.

    The project involves constructing a metro line linking the Qiddiya Entertainment City development, King Abdullah International Gardens, King Salman Park, Misk City and Diriyah Gate.

    The line will be about 65 kilometres (km) long, of which 47km will be underground and 19km will be elevated. It will have 19 stations, 14 of which will be underground and five above ground.

    According to sources close to the project, the consortiums are:

    • Alstom (France) / Webuild (Italy) / Nesma (local) / China Harbour Engineering Company (China)
    • Siemens (Germany) / FCC (Spain) / Orascom Construction (Egypt) / Shibh Al-Jazira Contracting Company (local)
    • Hitachi Rail (Japan) / Larsen & Toubro (India) / Albawani (local) / Kalyon (Turkiye) / Cengiz (Turkiye) 
    • CRRC (China) / Mapa (Turkiye) / Limak (Turkiye)

    Earlier this month, MEED exclusively reported that firms have submitted bids for a contract covering the project management consultancy services for the construction of Riyadh Metro Line 7.

    Riyadh Metro’s first phase features six lines with 84 stations. The RCRC completed the phased roll-out of the Riyadh Metro network when it started operating the Orange Line in January this year.

    Construction has also begun on the next phase of Riyadh Metro, the Line 2 extension.

    In July last year, MEED exclusively reported that the RCRC had awarded an estimated $800m-$900m contract for the project.

    The contract was awarded to Arriyadh New Mobility Consortium, led by Italy’s Webuild. 

    The group also includes India’s Larsen & Toubro, Saudi Arabia’s Nesma & Partners and France’s Alstom.

    The Orange Line, also known as Line 3, stretches from east to west, from Jeddah Road to the Second Eastern Ring Road, covering a total distance of 41km. 

    The line covers 8.4km, of which 1.3km is elevated and 7.1km is underground. It includes five stations – two elevated and three underground.

    It will run from the current terminus of Line 2 at King Saud University (KSU) and continue to new stations at KSU Medical City, KSU West, Diriyah East and Diriyah Central – where it will interchange with the planned Line 7 – before terminating at Diriyah South.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16438898/main.jpg
    Yasir Iqbal
  • Kuwait prepares to tender LNG project

    17 April 2026

    Kuwait's Central Agency for Public Tenders (Capt) is preparing to issue a tender for the construction of an LNG reliquefaction unit at Al-Zour LNG import terminal.

    The client on the project is state-owned Kuwait Integrated Petroleum Industries Company (Kipic).

    The project is focused on the development of a boil-off-gas unit at the import terminal, according to a report in Kuwait’s Al-Anba newspaper.

    The project scope include engineering, procurement and construction works, along with pre-commissioning, commissioning and performance testing services.

    The list of pre-qualified companies is:

    • Fluor (US)
    • GS Engineering & Construction (South Korea)
    • Tecnicas Reunidas (Spain)
    • Larsen & Toubro (India)
    • Hyundai Engineering (South Korea)
    • CTCI Corporation (Taiwan)
    • Daewoo Engineering & Construction (South Korea)
    • Hyundai Engineering & Construction (South Korea)
    • Saipem (Italy)
    • Samsung Engineering (South Korea)
    • Sinopec Engineering (China)
    • JGC Holdings (Japan)
    • KBR (US)
    • China National Petroleum Corporation (China)
    • Technip (France)

    Kuwait’s LNG import terminal is currently not operating due to disruption caused by the US and Israel’s war with Iran.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16426605/main.png
    Wil Crisp