Saudi Arabia Unleashes Massive Desalination and Sewage Expansion to Secure Water Future
Saudi Arabia is fast-tracking an unprecedented expansion of its desalination and sewage treatment infrastructure aimed at meeting its National Water Strategy 2030 targets, providing a surge of Public-Private Partnership (PPP) opportunities for global developers and investors right now.
As water demand in the Kingdom surges well above global averages—currently at 263 liters per capita per day—authorities are ramping up the construction of Independent Water Plants (IWPs) and Independent Sewage Treatment Plants (ISTPs) under a streamlined ownership and operational model managed by SHARAKAT, the Kingdom’s central water buyer. This delivery push is positioned to nearly double desalination capacity and triple sewage treatment volumes within five years.
Desalination Capacity Poised to Nearly Double by 2031
Anchor supplier desalination currently covers 79% of Saudi Arabia’s urban water needs. Its portfolio will rocket from 3.88 million m3 per day in 2025 to an astonishing 7.18 million m3 per day by 2031 thanks to a massive capital injection into new facilities.
Leading projects already underway include:
- Rabigh 4 IWP: 600,000 m3/day capacity, targeting operation in 2026, awarded to a consortium led by ACWA Power
- Ras Mohaisen Phase 1 & 2: Combined 300,000 m3/day capacity with first phase slated for 2028 and expansion by 2030
Four more IWPs—Shuqaiq 4, Ras Al Khair 3, Tabuk 1, and Ras Al Khair 2—are moving into procurement within 18 months, reflecting the Kingdom’s aggressive scaling.
Sewage Treatment Capacity Ramps Up to 10 Million m³/Day Target by 2030
In parallel, sewage treatment expansion is picking up speed to meet the 10 million m3/day national treatment target, with an ambitious goal to reuse 70% of treated water to reduce environmental impact and align with UN Sustainable Development Goal 6 (clean water and sanitation).
Already, treatment coverage has climbed from 56.7% in 2019 to 64% in 2025, powered in large part by new independent sewage treatment plants (ISTPs). Currently, 10 ISTPs are operational or in progress, with a combined capacity of 1.79 million m3/day, expanding to an expected 3.19 million m3/day soon.
Highlight projects moving forward include:
- Dammam West ISTP: First ISTP PPP, operational with 200,000 m3/day expandable to 350,000 m3/day
- Jeddah Airport 2 ISTP: 300,000 m3/day expandable to 500,000 m3/day
- Hadda ISTP: 100,000 m3/day expandable to 250,000 m3/day, targeting 2028 commercial start
- Arana ISTP: 250,000 m3/day expandable to 500,000 m3/day, also set for 2028 opening to serve Mecca’s wastewater needs
- Riyadh East ISTP: 200,000 m3/day, targeting financial close in late 2026 with commercial operations planned by 2029
Looking ahead, Request for Proposals (RFPs) for six new ISTPs covering cities like Abu Arish, Al Kharj, and Hafar Al Batin are slated for release starting in early 2027, ensuring continuous pipeline opportunities for developers and contractors.
Robust Government-Backed Payment Model De-Risks Investments
SHARAKAT’s projects operate on an availability and performance-based payment model with government-backed offtake agreements guaranteeing revenues for the entire concession terms of up to 25 years. This Build, Own, Operate (BOO) framework for IWPs and Build, Own, Operate, Transfer (BOOT) for ISTPs ensure low-risk, stable returns for private capital, attracting strong interest from local and international investors.
The Kingdom has successfully prequalified more than 50 developers and contractors to streamline market entry, accelerating deployment and enabling a highly efficient tendering process continuously updated through SHARAKAT’s official channels.
Why This Matters for Global Water Security and Beyond
Saudi Arabia’s aggressive water infrastructure expansion is a key strategic move amid global water scarcity concerns. With growing populations, urbanization, and climate pressures worldwide, replicable PPP models backed by sovereign guarantees present a blueprint for other regions, including water-stressed areas in the United States and particularly coastal states like North Carolina facing water management challenges.
The Kingdom’s strategy intertwines economic growth with sustainable environmental goals, ultimately pushing a circular water economy that could set the pace for water resilience in arid and high-demand regions globally.
For international developers and financiers tuned to water infrastructure, Saudi Arabia now stands as the world’s largest, most active desalination market, paired with soaring sewage treatment demand—creating ten years of low-risk, large-scale investment and construction opportunities stretching through 2030 and beyond.
The race is on now, with multiple projects breaking ground and tenders opening this year and next, making this a crucial inflection point for global water innovation and partnership.
