A total of 100 bottled water factories have been shut down in Jeddah over the last five years for failing to maintain strict government standards.

“Most of these factories were no longer able to keep up with government demands, most notably the 20 percent nationalization quota set by the Labor Ministry,” Nasser Al-Sharif, the head of the bottled water unit, told a local daily.

“Others were unable to relocate to specific commercial streets as stipulated by the government and preferred closing down their facilities instead,” he said.

Al-Sharif maintained that the majority of these factories exited the market due to financial liabilities and not because of health violations.

“Commerce Ministry and Jeddah Municipality campaigns reduced the number of bottled water manufacturers by 35 percent to only 200 factories,” he said.

The local municipality, nevertheless, recently uncovered violations in 113 bottled water plants.

“Around 20 samples out of a total of 187 tested in 2014 proved unfit for drinking,” said a municipality statement. “Still, the Saudi Food and Drug Authority (SFDA), the Jeddah Municipality and the other supervisory bodies did not discover prominent health hazards during the campaign,” argued Al-Sharif.

“The traces of bacteria that were found in some production lines are normal and can easily be tackled. Such traces are bound to be found in one or two plants out of more than 100,” he said.

With investments worth more than SR1 billion and an annual sales revenue of around SR120 million, manufacturers are feeling the pressure to nationalize their work force.

“These factories only require a certain number of Saudis since expats mostly undertake the menial work required within these plants,” he said. “Still, the Labor Ministry made it incumbent on these companies to use the income made from investments on Saudi salaries, prompting many to abandon the business entirely.”

Saleh Bahussain, one of the oldest investors in the sector, says the bottled water industry is no longer the same. “The factories have become a playground for government employees,” said Bahussain.

“By placing such stringent conditions upon us over the past two decades, authorities are tampering with our livelihoods. As such, many of us have no choice but to leave the business, close down our factories and look for other sources of income since there has been no one to protect the rights of investors in the face of such changes.”

“Why don’t they crack down on illegal expats who are on the loose in the city, committing violations of all sorts,” Bahussain wondered.

The Kingdom is the biggest consumer of desalinated water in the world, with local investment in the sector exceeding SR6 billion.