business-insight

RENEWABLE ENERGY

SAUDI POLICY INTENSIFIES FOCUS ON WATER SECURITY

 

Saudi Arabia is preparing for a landmark year in water policy, with the Cabinet's designation of 2027 as the "Year of Water" set to highlight the kingdom's progress on water security and resource management.

The designation reflects the support the water sector receives from the Saudi leadership and reinforces the kingdom's position as a global model in water resources management, in line with Saudi Vision 2030 and Sustainable Development Goal 6.

The Year of Water 2027 oers a national opportunity to highlight the kingdom's achievements in the sector and the integrated model it has built by drawing on global best practices. Saudi Arabia has transformed this experience into innovative solutions that benefit other countries, and established a global presence through local, regional, and international initiatives.

It will also serve as a national milestone to strengthen public awareness of the value of water and the importance of conserving it, accelerate national initiatives, stimulate innovation, investment, and strategic partnerships, and showcase the kingdom's experience as an advanced global model in water security and sustainable resource management.

PROGRESS MADE

Consumption of non-renewable groundwater fell from about 21 billion cubic metres (m3) in 2016 to around 11 billion m3 in 2025. Over the same period, strategic water storage capacity grew by more than 125%, while desalinated water production capacity rose to approximately 16 million m3 per day, up from around 9 million m3 in 2016. Access to safe drinking water now exceeds 100% of the population, with about 85% served through water distribution networks, reflecting sustained investment in infrastructure and service eciency.

These achievements have positioned Saudi Arabia as a global leader in the water sector, built on an integrated approach to resource management, innovation, improved service eciency, and the sustainable preservation of water resources for future generations – making it an international reference point for water solutions and addressing scarcity challenges.

The kingdom's growing international reputation has been reinforced by the launch of the Global Water Organization, headquartered in Riyadh, which serves as a platform for unifying eorts, exchanging expertise, and promoting innovation and research in the water sector. The country is also preparing to host the 11th World Water Forum in 2027, underscoring its role in advancing international cooperation on global water challenges.

LIQUID CAPITAL

The country’s water sector has already attracted investments surpassing ⃁ 60 billion after it expanded private sector participation and strengthened water security, according to Abdulrahman Al-Fadhli, minister of environment, water and agriculture.  

The Saudi Water Partnership Co., the country’s primary water otaker, manages a privatisation investment portfolio valued at ⃁ 56 billion across 48 water and wastewater projects.

The focus on water is vital as the region’s water sector faces several natural, operational, and institutional challenges, with the scarcity of renewable water resources posing the greatest difficulty .

“The sector also faces other challenges, including the growing global demand resulting from population growth, economic expansion, the diversification of water sources, and high usage rates, in addition to the financial costs of major projects and their financing,” Al-Fadhli said at the inaugural Saudi Water Week in Jeddah in June.

A STRATEGIC RESOURCE

Saudi Arabia stands as the world's largest producer of desalinated water, with a daily output exceeding 11.1 million m3, an achievement built on decades of innovation, development, and commitment.

Water Desalination (SWCC), the operational arm of the Saudi Water Authority, plays a vital role in securing the kingdom's water supply. It operates and maintains modern desalination systems along both the eastern and western coastlines and develops systems for desalinating groundwater and surface water. Backed by over half a century of technical expertise and a national vision rooted in sustainability and innovation, Water Desalination continues to drive progress in the sector.

Saudi Arabia has made significant strides in the desalination industry, not only in expanding production but also enhancing eciency and pioneering cutting-edge technologies. Water Desalination has achieved a remarkable milestone, producing more water with less energy and at lower operational costs.

It serves as a strategic pillar of Saudi Vision 2030 and reflects the kingdom's ability to overcome environmental and engineering challenges through sustainable development, setting a global benchmark in natural resource management.

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ECONOMY

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GAMING

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ISLAMIC FINANCE

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NIDLP

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DISCLAIMER

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