RIYADH: Saudi Minister of Environment, Water and Agriculture Abdulrahman Al-Fadhli told Al-Eqtisadiah that the Kingdom intends to expand the privatization of water production, treatment, transportation, and storage activities. He said this would help improve operational efficiency, attract additional investment, and enhance the sector's sustainability.
During the launch of the inaugural Saudi Water Week, held in Jeddah on June 28, Al-Fadhli said the National Water Strategy has made enhancing private sector participation one of its key priorities.
The minister said that the water sector in Saudi Arabia has succeeded in attracting foreign investments, while simultaneously achieving strong performance indicators that include reducing the consumption of non-renewable groundwater, increasing the production capacity of desalinated water, and raising strategic storage capacity.
Al-Fadhli also told journalists that Saudi Arabia has invested approximately SR220 billion ($58.4 billion) in developing infrastructure and improving the efficiency of the water system over the past 10 years, including more than SR60 billion in foreign investment.
Privatization boosts water-sector efficiency, investment appeal
The minister said the National Water Strategy has made enhancing private sector participation one of its key priorities, noting that efforts are focused on privatizing several sector activities, primarily water production, as well as treatment, transportation, and storage.
Al-Fadhli added that privatization will improve operational efficiency and attract further investment, while projects in these areas continue to advance.
The inaugural Saudi Water Week, held in Jeddah, features two main events: the 7th Arab Water Forum and the Second Stakeholder Consultation Meeting for the 11th World Water Forum. The event brings together decision-makers, experts, specialists, and representatives of regional and international organizations, as well as government agencies, the private sector, and research institutions.
Foreign investments exceed SR60 billion
Al-Fadhli said the transformation is reflected in tangible performance indicators, with the consumption of non-renewable groundwater falling from approximately 21 billion cubic meters in 2016 to nearly 11 billion cubic meters in 2025. Desalinated water production capacity currently stands at 16 million cubic meters per day, compared with 9 million cubic meters per day in 2016. Safe drinking water is available to 100 percent of the population, while approximately 85 percent of residents are connected to the public water network.
The minister said the water sector has become more efficient and attractive to investors, supported by an integrated institutional framework that maximizes private sector participation throughout the supply chain. This has been enabled by clear regulatory and contractual frameworks, as well as expanded public-private partnership models and supporting mechanisms, which have attracted investments exceeding SR60 billion. These investments have helped reduce water production costs and improve energy efficiency across the production system.
He said this reflects the water sector's shift from a model focused on expanding supply and services to one that balances supply and demand, security of supply, efficiency, and financial and environmental sustainability.
Addressing water security challenges
UN Secretary-General’s Special Envoy on Water Retno Marsudi called for integrating water resilience into national planning, climate strategies, financing mechanisms, and development policies. She said international cooperation on water is essential to achieving the Sustainable Development Goals and should be better coordinated across UN mechanisms and global platforms.
Marsudi said the World Water Forum can play a significant role in translating global political commitments into practical solutions, effective partnerships, financing mechanisms, and the dissemination of appropriate technologies.
Mahmoud Abu Zeid, president of the Arab Water Council, said water scarcity in the Arab world poses a severe security threat, compounded by rapid population growth, financial constraints, and limited renewable water resources. This affects energy security, food security, and social stability across the region.
Abu Zeid added that climate change will further increase pressure on Arab water security, predicting a decline of up to 20 percent in renewable water resources by 2030.
He said these challenges can be addressed through political will, innovation, and a commitment to cooperation and dialogue among all stakeholders to develop pioneering solutions. He also called for strengthening the private sector’s role and expanding access to financing to increase reliance on non-conventional water resources and accelerate the implementation of practical solutions.
Participation of a select group of experts
The first day of the event also featured high-level dialogue sessions involving several Arab water ministers and their deputies, alongside parallel sessions with experts and specialists from Saudi Arabia and abroad.
