BMI View: We feel that Saudi Arabia has solidified its place as a major player in the world water market as the pressure on the existing water system continues to mount, prompting large investment from the Saudi government. In addition to the basic provision of water services to the public, an expansionary economic policy, active construction sector and water intensive operational developments in the oil and gas industry create an increased urgency. However, the demand for water supplies is set to soar over the next decade, with growth of around 10% year-on-year. In order to cater for this, the government must ramp up its already-impressive project pipeline for the sector.
Backed by a multi-billion dollar infrastructure expenditure programme, the Kingdom is ploughing resources into its water sector and prioritising contractor awards across the key desalination, wastewater and network areas. The government allocated US$6.4bn for water and sanitation projects in 2013 alone and committed over $66 billion to long-term capital investments over the next 10 years.
The most favourable aspect of the Saudi landscape is the abundance of liquidity and the willingness of key projects sponsors and utilities to furnish this on what is a critical economic sector, in a country where water resources are highly restricted yet demand continues to grow. Projects worth around US$15bn have been ordered since Saudi Arabia decided to push ahead with its IWPP programme. They are set to add over 1bn m 3/d to the nation's water supply and nearly 10 gigawatts (GW) of power capacity. These have made Saudi Arabia a hotspot for international engineering firms and foreign investment.
PPPs have been established for a number of cities with international and domestic companies, typically under six- or seven-year contracts, which cover water distribution and wastewater collection. Wastewater treatment is being handled through a separate programme. These contracts are also designed to limit the...
The Saudi Arabia Water Report has been researched at source and features latest-available data covering public and private sector investment in all major water projects including water extraction, water distribution and water treatment and sanitation projects and also includes competitive intelligence. The report features Business Monitor International (BMI)'s independent industry forecasts and analysis of latest industry news, trends and regulatory developments in Saudi Arabia.
BMI's Saudi Arabia Water Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the water industry in Saudi Arabia.
- Benchmark BMI's independent water industry forecasts for Saudi Arabia to test other views - a key input for successful budgeting and strategic business planning in the Saudi water industry.
- Target business opportunities and risks in Saudi Arabia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into Water Extraction, Water Consumption and Water Treatment & Sanitation.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the water and wastewater sectors and the potential affects for industrial consumers, within the broader political, economic and business environment.
Industry & Economic Forecasts
Historic data series (2011-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions. Indicators include extraction, consumption and treatment.
Evaluation of the water industry in each state, with special emphasis on supply & consumption, distribution, treatment & sanitation, regulations & tariffs.
Industry Trends & Developments
Analysis of latest projects across the water infrastructure sector including Water and wastewater treatment plants, desalination facilities, mains water and sewage network expansions, dams, and hydropower plants.
Provides an overview of key government ministries overseeing the water sector together with regulatory organisations, alongside the central companies involved in water and wastewater distribution and treatment services in the country.