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- Spending increase inside Kingdom supports jobs, reduces dependence on imports, expert says
- Benchmark set as part of Saudi Vision 2030 annual performance indicators
RIYADH: Saudi Arabia’s water sector achieved a 66.1 percent local content rate by the end of 2025, exceeding the annual target of 66 percent, the Saudi Water Authority announced on Monday.
Economist Abdullah bin Haddas told Arab News: “This means about two-thirds of the spending or value linked to water sector projects and services is now going to entities inside Saudi Arabia — local factories, suppliers, contractors, and in-country operations, maintenance and engineering — rather than relying more heavily on imports or foreign firms.”
Haddas said this growth matters to residents because it can support steadier service in a sector as essential as water.
He said that when more materials, spare parts, and technical services are available locally, maintenance can be faster. It can also reduce exposure to international shipping delays.
He added that keeping more spending inside the Kingdom can support jobs and skills. It can also help Saudi companies linked to the sector grow.
The authority said that this performance is the result of expanding reliance on national capabilities across the various value chains in the water sector, alongside growing participation by local suppliers and contractors in sector projects.
It said this contributes to higher operating efficiency. It also strengthens the reliability and stability of supplies.
Haddas added: “The difference between 66 percent and 66.1 percent is numerically small. However, beating a target can still matter institutionally.
“It signals the sector did not just meet its benchmark but surpassed it. That is often read as evidence of disciplined implementation, and steady improvement.”
The authority said that the sector recorded a 4.39 percent growth compared with the 2023 baseline, with a compound annual growth rate of 2.17 percent, the Saudi Press Agency reported.
It said this reflects continued progress in localizing industries related to the water sector, and also points to supply chain efficiency.
The authority said that its role focuses on developing regulatory frameworks and creating an enabling environment for local content growth.
It also monitors compliance and measures performance using clear indicators and standards to ensure sustainable results.
Haddas said: “These targets are not standalone numbers but part of Saudi Vision 2030, which sets clear performance indicators for each sector that are measured annually.”