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Market brief

Saudi Arabia

The authorities that procure water infrastructure in Saudi Arabia, how the deals are put together, and what is in the pipeline.

Reference profile for Saudi Arabia

Market snapshot

The commercial picture in Saudi Arabia: the scale of the economy and the water sector, the investment climate, and where the near-term activity is concentrated.

0
million people · +2.1% a year
US$ 0
GDP · +1.3% a year
US$ 0
tracked investment pipeline (major projects)

Political stability

65/100 · Above average

World Bank Governance Indicators, 2024. Percentile among all countries; higher is more stable.

Investment climate

66/100 · Above average

World Bank Governance Indicators, 2024. Regulatory quality for private investment; higher is better.

Financing & PPP

  • PPP frameworkMature (world's largest desalination PPP programme via SWPC)
  • Tracked pipelineUS$ 22.4 bn in our projects register
  • Active fundersPublic Investment Fund (PIF), Saudi National Bank
  • Climate adaptation planAdopted (2023)

Opportunities

  • Giga-project water systems (NEOM, Diriyah)
  • Reverse-osmosis & solar desalination
  • Reuse to 90% target
  • Smart-network & NRW programmes

Key challenges

  • World's largest desalinated-water demand
  • Depleting non-renewable aquifers
  • High per-capita consumption
  • Energy & carbon intensity

Sources: FAO AQUASTAT / national reports (latest available); World Bank 2023–24. Figures approximate. Water losses: SWPC 7 Year Statement 2024–2030, p. 20, citing MEWA (36% in 2024; target about 15% by 2030). Governance indicators: World Bank Worldwide Governance Indicators (2024).

Contracting authorities

The bodies that commission, regulate and operate water infrastructure in Saudi Arabia. Ministries set policy and sign the offtake; utilities run the assets; regulators set the tariff and the service standard.

How deals are structured

The framework in Saudi Arabia is Mature (world's largest desalination PPP programme via SWPC), the schemes we track carry US$ 22.4 bn of disclosed value, and the funders most active in the sector are Public Investment Fund (PIF), Saudi National Bank, Project finance.

Delivery splits by asset class across the region: dams and trunk conveyance are mostly engineering contracts carried by sovereign or development-bank finance; bulk supply increasingly uses build-operate-transfer concessions against a long-term offtake; and distribution work is let as performance-based contracts paid against measured leakage reduction. The Finance & Economics hub sets out each model and where it has been used.

The projects register bears this out. Of the 51 tracked schemes in Saudi Arabia, 9 name a concession structure in the finance note; the rest record only where the money came from, which is not the same as saying they were not concessions.

How to bid

Saudi Arabia runs the most systematic water procurement in the region, and the single most useful fact about it is that qualification is a standing status rather than a per-project exercise. Sharakat, which is owned by the Ministry of Finance and which took over the swpc.sa address, runs a developer pre-qualification programme whose first edition in May 2024 qualified more than 80 developers from over a hundred applicants; a qualified firm receives the request for proposals for future projects without applying again.21 A second edition opened in March 2025 and a third is announced.2

How to bid
Procuring bodySharakat, the Saudi Water Partnership Company, owned by the Ministry of Finance. It procures desalination, sewage treatment, transmission and strategic sewage schemes.1
RouteStanding developer pre-qualification, then a request for proposals issued to the qualified list. Contractors qualify separately, through a Contractor Qualification Initiative launched in 2024 whose stated objective is to increase local content.23
RegistrationVendor registration for corporate services is by email to Sharakat’s procurement address; project bidding runs through the pre-qualification programme rather than the vendor list.4
Local contentThe Saudi Water Authority reports 66.1% local content achieved, SAR 23.4 bn of local spending against SAR 36 bn of project and service cost, and names the target categories: reverse-osmosis membranes and pressure vessels, chemicals, pumps, valves, energy recovery devices, filters, motors and spares.6
Contract form and termBuild-own-operate for independent water projects; build-own-operate-transfer for sewage treatment, transmission and strategic sewage. Twenty-five years on recent plants, thirty-five on the Rayis to Rabigh transmission line.5
Offtake counterpartySharakat, under a water purchase or water transmission agreement.5
Payment securityUnder the Private Sector Participation Law the Ministry of Finance confirms affordability before a tender is approved, allocates budget for the public party’s obligations and approves any credit support. A project-level sovereign guarantee is not published.7
Governing law and languageSaudi law and Arabic are the defaults. The law permits arbitration, a foreign governing law and non-Arabic contracting, but each needs the approving authority’s consent rather than being available as of right.7
Listing requirementCouncil of Ministers Resolution 496 requires partnership projects to be listed on the Saudi exchange through a direct or indirect public offering.7
LabourThe law allows a project to be excluded from certain labour provisions, including Saudisation, again by approval rather than by right.7

The legal basis is the Private Sector Participation Law, approved by Council of Ministers Resolution No. 436 of 3/8/1442H and in force 120 days after publication.7 What could not be established from a primary source: whether Etimad registration gates Sharakat project bidding as it does ordinary government procurement, and the terms of any project-level payment guarantee.

Regulatory intelligence

Regulatory status matrix
RegulationStatusYearNote
National Water Strategy 2030In force2018Full-chain restructuring: privatisation, reuse 70%, metering.
Private Sector Participation LawIn force2021Legal spine of the SWPC IWP/ISTP programme.
Water LawIn force2020Abstraction licensing, service regulation, penalties.
Tariff reformPhased2016–Stepped increases toward cost-reflective tariffs.
Irrigation restrictions (wheat/fodder)In force2016/2019End of wheat procurement; fodder cultivation phase-out.

Primary references: MEWA and the Saudi Water Partnership Company (SWPC).

Projects

Track record

What has actually been signed in Saudi Arabia, from the awards log and the major projects register.

Disclosed value by year

US$ bn of tracked awards in Saudi Arabia carrying a published value

20090.23 bn20107.2 bn20121.2 bn20170.42 bn20180.91 bn20191.16 bn20201.91 bn20210.7 bn20220.13 bn20231.32 bn20253.48 bn

13 further awards in this sector carry no published value and are not in the chart.

Tracked awards in Saudi Arabia
YearProjectWinning firmsUS$ m
2025Hadda ISTPMetito Utilities, Etihad Water and Electricity, SkyBridgen/a
2025Jubail–Buraydah IWTPJomaih Energy & Water, Nesma, Buhur2,267
2025Ras Mohaisen IWPACWA Power667
2025 on lineJubail SWRO Plant (Lantania and MGC)Lantania with Mutlaq Al-Ghowairi Contracting Company544
2025 on lineShuaibah 6 Desalination ProjectRawafid Industrial Companyn/a
2023Rayis–Rabigh IWTPAlkhorayef Water & Power, Cobra / Tedagua640
2023 on lineRabigh 4 IWPPower China, SEPCO III and WETICO677
2023 on lineRiyadh Manfouha Wastewater ComplexAlkhorayef Water and Power Technologiesn/a
2022 on lineJubail Phase 2 SWRO (Jubail RO2)SEPCO III with Metito132
2021 on lineJubail 3B IWPENGIE, Ajlan & Bros, Nesma700
2021 on lineJubail 5 SWRO (Jubail 2 Replacement)Saudi Services for Electro Mechanic Works (SSEM) with Metito Saudin/a
2020 on lineAl-Khobar Phase 2 SWROACCIONA Agua with Al-Rashid Trading and Contracting Companyn/a
2020 on lineJubail 3A IWPPower China, SEPCO III, Lantania and Abengoa650
2020 on lineShuaibah 5 SWROAdvanced Water Technology (AWT) with Rawafid Industrialn/a

Years without a label are award years from the curated log; rows marked on line are dated by commissioning, from the projects register. 32 rows in total for Saudi Arabia.

Repeat winners

  • ACCIONA Agua with Al-Rashid Trading and Contracting Company2 tracked awards
  • Nesma2 tracked awards

Firms or consortia appearing on two or more tracked awards in Saudi Arabia.

Pipeline & tenders

Structured procurements and live tenders in Saudi Arabia, drawn from the same review that maintains the pipeline tracker.

Pipeline & awards

Tenders

Prices

What households pay

What households pay in Saudi Arabia
Household tariff (US$/m³)Cost of supply (US$/m³)YearSource
$0.03 – 1.60not published2022US-Saudi Business Council, Saudi Arabia's water sector (Feb 2022), table 1, from NWC

Steeply blocked: SAR 0.10/m³ for the first 15 m³ a month rising to SAR 6.00 above 60 m³ for water alone, and SAR 0.15 to 9.00 with sewage. The National Water Company's own schedule page is not machine-readable, so this is the published reproduction; confirm before relying on it.

Residential tariffs, and the cost of supply where a utility publishes it, are kept in one place for the whole region so the comparison holds: a tariff means little without the cost it is measured against.

Watch list

What has actually moved in Saudi Arabia, dated, from the monthly briefings. Each item names the edition it came from.

  • 2026-09Sharakat's own plan put financial close on Arana, Hadda and the Jazan cluster in mid-2026. None has been published.August 2026 briefing

The full editions are in the briefing archive.

Sources

12 references

Project, pipeline and tender records are compiled from procurer announcements, lender disclosures and trade reporting; each project page carries its own source and the date it was last checked. Institutions are from the decision-maker directory. Economic and water indicators are cited on the reference profile.

  1. Sharakat (Saudi Water Partnership Company), company site, which states Ministry of Finance ownership; swpc.sa now redirects to it.
  2. Sharakat, pre-qualification programme for developers.
  3. Sharakat, contractor qualification initiative.
  4. Sharakat, supplier registration.
  5. Sharakat, company portfolio, the individual project pages for structure, term, tariff and cost.
  6. Saudi Water Authority, local content.
  7. Clifford Chance, “Issuance of the Private Sector Participation Law”, April 2021. A law-firm briefing, not the gazette.
  8. FAO, AQUASTAT — Global Information System on Water and Agriculture: country water resources, withdrawals by sector and dam register. fao.org/aquastat. Latest country values as compiled at build.
  9. World Bank, World Development Indicators and country water-sector reporting. data.worldbank.org.
  10. Kaufmann & Kraay, Worldwide Governance Indicators (World Bank), 2024 update — political-stability and regulatory-quality scores, 0–100, shown in the market snapshot. worldbank.org/wgi.
  11. World Resources Institute, Aqueduct 4.0 Water Risk Atlas (2023) — the sub-basin risk, stress and groundwater-decline layers on the interactive maps. wri.org/aqueduct.
  12. MENA Water Review major projects register and PPP pipeline — compiled from procurer publications, development-bank project pages and trade reporting; each record names its source.

Numbered references are linked from the superscript markers in the text. Figures without a marker come from the sources above as compiled in the site methodology.