JEDDAH, 26 September 2006 — A forum will be held Nov. 11-14 to discuss investment opportunities in the Saudi power and water sectors.
This will be the second year for the Jeddah Water and Power Forum, where event organizers estimate that about 500 participants from 39 Arab, Asian and Western countries will convene to discuss developments in these two important sectors.
The forum will focus on the Kingdom’s ongoing privatization efforts in power, water and sewage treatment as well as updating attendees on the latest technological developments in these areas. Other topics to be addressed include: logistics and telecommunications related to these sectors.
According to a report prepared by the Jeddah Chamber of Commerce and Industry, demand for electric energy is growing in the Kingdom at an annual rate of 5.5 percent. The Kingdom currently generates about 31 gigawatts of electrical output. Investments of some $117 billion are needed to increase that capacity to 59 gigawatts by the year 2023, including $46.9 billion of investment in new power plants, as well as $17.5 billion in secondary electricity transportation projects, and $18.9 billion in power distribution projects. Some $100 billion in water and sewage investment is also needed by 2025.
Approximately 1.5 million cubic meters is recycled every day all over the Kingdom, but only about a third of that water is reused while the rest is discharged into the sea due to insufficient reclamation infrastructure. One proposal under consideration is to inject this water directly into the dwindling aquifer.
The Kingdom’s agricultural sector consumes 80 percent of the country’s water. Two-thirds of that comes from underground resources, 60 percent of which are non-renewable. This water is used for the production of consumer produce. Experts have said in the past that Saudi Arabia should consider importing more agricultural produce, or expand its agricultural production of produce more suited to arid climates, and reduce its agriculture-related water consumption.
Some 5.6 million cubic meters of water a day have been produced in the Kingdom in 2005, of which 60 percent came from desalination facilities. It is estimated that by 2024, demand will reach nine million cubic meters a day. Desalination plants in the Kingdom produce about four million cubic meters a day.
There are 28 desalination plants in various locations of the vast Kingdom, producing 60 percent of water supplies. About a 25 percent of the Kingdom’s water supply comes from underground reserves, and 14.8 percent comes from treatment of black water.
According to a report by the Saudi Arabia General Investment Authority, last year saw a steep increase in the number of licenses issued for water and electricity projects, beating forecasts by a 168 percent.
Total investments in these projects amounted to $3.6 billion, compared to $2.1 billion in 2004. The most significant of these projects was the third stage of the Shuaiba project, the first fully self-contained water and electricity project in the Kingdom, which involves a Saudi-Malaysian partnership with investments of $2.4 billion. The project has a production capacity of 800,000 cubic meters of water and 900 megawatts of electricity a day.
Some 109 companies, manufacturers and institutions will be showing off their products, services and experiences at the forum. These exhibitors will undoubtedly aim at developing their business and professional relations within the vast Saudi market, which means great opportunities for Saudi businessmen and investors in building business contacts and professional partnerships with their peers from 19 countries. Visiting the exhibition is free of charge.