Saudi Arabia Invests SR2.8bn to Localize Water Industry

Saudi Arabia is stepping up efforts to localize its water industry through new investments estimated at about $747 million, or SR 2.8 billion, covering six signed opportunities that will establish seven new factories serving the sector. The push falls under the Water Industries and Services Localization Program, led by the Saudi Water Authority (SWA).

The new factories will focus on locally manufacturing chemicals, pumps, energy-recovery equipment, control systems, valves, desalination membranes and other key components. The stated goal is to localize around 90% of the water industry's core components, reducing reliance on imports and strengthening domestic supply chains.

The program currently presents 18 defined investment opportunities across water industries and services, with a five-year horizon and targeted cumulative investment demand exceeding SR 15 billion. Average expected investment returns run up to about 12%, with export potential typically in the 30–50% range. Localization of reverse osmosis membrane manufacturing, valued at roughly SR 1.14 billion, has already been completed, with staged plans to localize specialized chemicals and then key equipment such as pumps, motors and energy-recovery devices.

Why it matters

By the end of 2025, the local content rate in the water sector reached about 66.1%, exceeding the annual target of 66%, with total local expenditure of around SR 23.4 billion out of roughly SR 36 billion in sector spending. Since 2018, cumulative investments in the wider water sector reached around SR 100 billion, including 51 privatization projects worth about SR 56 billion.

For residents and businesses, the drive supports technology transfer, industrial capacity and new jobs under Saudi Vision 2030, while helping secure a more resilient supply for one of the Kingdom's most vital services.

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