Saudi Arabia leads bold transformation to tackle water scarcity

Saudi Arabia leads bold transformation to tackle water scarcity
The National Water Strategy aims to boost treatment and reuse significantly by 2030 — targeting treatment of up to 10 million cubic meters daily and reuse rates of 70 percent. (AFP)
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Updated 07 June 2025
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Saudi Arabia leads bold transformation to tackle water scarcity

Saudi Arabia leads bold transformation to tackle water scarcity
  • Kingdom takes decisive steps to secure water availability for future generations

RIYADH: Saudi Arabia is confronting one of the world’s most urgent environmental challenges: water scarcity. 

Faced with limited natural freshwater resources and a rapidly expanding population, the Kingdom is taking decisive steps to secure water availability for future generations.

Central to this ambitious transformation is a strategic focus on the “Three As” of water management: availability, accessibility, and affordability.

In recent years, Saudi Arabia has become a global leader in water desalination, investing heavily in cutting-edge technologies and large-scale infrastructure projects. 

These efforts are not only reshaping the nation’s water landscape but also setting an example for other arid regions grappling with similar issues.

Speaking to Arab News, Tariq Nada, executive vice president of the Center of Excellence at ACWA Power, highlighted the Kingdom’s dominant role in the water sector.

“The Kingdom’s current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030,” Nada explained.

He further noted: “As of 2024, the Kingdom had committed $6.28 billion in ongoing projects focused on water distribution, water treatment plants, wastewater collection projects and wastewater treatment plants.”

Nick Strange, principal at Arthur D. Little, pointed out Saudi Arabia’s massive achievements over the past five decades. 

“The country plans to more than double its desalination capacity to around 20 million m³/d by 2030. New mega plants are under development in strategic locations including the Eastern Province, Makkah, Jazan and Madinah (regions). In parallel, the transmission network will also be expanded in scale and reach to accommodate the growing demand and new production hubs,” he told Arab News.

Strange added: “However, the Kingdom is not relying on desalination alone. Recognizing the importance of water sustainability, Saudi Arabia is also accelerating efforts in wastewater treatment and reuse. Current treated water capacity is 6-7 million m³/d, with approximately 30 percent being utilized.”

Saudi Arabia’s approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants.

Meanwhile, the reuse of treated wastewater is gaining momentum as part of a wider push for sustainable resource management.

Public-private partnerships have been instrumental in driving this transformation, accelerating investments and expediting the development of critical infrastructure.

Nicolas Boukhalil, PwC Middle East’s energy, resources and sustainability deals leader, emphasized the benefits of opening the sector to international competition. 

HIGHLIGHTS

• Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030.

• Saudi Arabia’s approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants.

“These partnerships are introducing new technology, improving efficiency, and making water more affordable for homes, businesses, and farmers alike. The result: a more sustainable financial model that eases pressure on public budgets and supports long-term economic growth,” he said.

He also stressed the importance of distribution networks, stating, “Producing water is only half the battle, getting it where it’s needed is just as critical. That’s why major investments are also going into water transmission networks, storage reservoirs, and smart management systems.”

Hani Tohme, partner and Middle East and Africa sustainability lead at Kearney, shed light on the current wastewater situation.

“Saudi Arabia treats over 6.5 million cubic meters of municipal wastewater each day, yet only around 25 percent of that is reused, with wastewater network coverage reaching approximately 65 percent,” he said.

The National Water Strategy aims to boost treatment and reuse significantly by 2030 — targeting treatment of up to 10 million cubic meters daily and reuse rates of 70 percent.

Tohme explained: “This enables groundwater preservation, supports industrial and agricultural reuse, and reduces dependency on energy-intensive desalination — which still provides 60 percent of urban water supply today.”

Enhancing water security

Saudi Arabia’s expansion of desalination and water purification is a cornerstone of Vision 2030, reinforcing national water security and the Kingdom’s broader transformation goals.

Nada from ACWA Power sees investment in advanced desalination as a critical response to water scarcity that also promotes economic growth through job creation and industry development.

“Since its inception, ACWA Power has consistently been an early adopter of new technologies, in full cooperation and collaboration with the full ecosystem, led by KSA Water offtaker, SWPC, achieving 87 percent reduction in specific power consumption over the last decade. This commitment to innovation is reflected in the company’s ongoing efforts to integrate sustainable and cost-effective water solutions,” Nada said.

From Arthur D. Little’s perspective, these initiatives boost economic diversification and elevate Saudi firms globally. 

The Kingdom’s current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030.

Tariq Nada, executive vice president of the Center of Excellence at ACWA Power

“For businesses, this presents significant opportunities across engineering, clean technology, and supply chain localization — while for the nation, it reinforces resilience, global competitiveness, and leadership in addressing one of the 21st century’s most pressing challenges: the sustainable management of water,” Strange explained.

PwC also notes the alignment between the Kingdom’s water strategy and Vision 2030’s goals of economic diversification and sustainability.

“As global demand for desalination and sustainable water solutions rises, Saudi Arabia has the tools, talent, and ambition to become a world leader in water technology, creating new revenue streams while solving a shared global issue,” Boukhalil said. Kearney’s Tohme emphasized the wastewater sector’s growing role in attracting private investment.

“For businesses, this creates significant opportunities in EPC contracting, localization of technologies including membrane technologies, operations and maintenance, and treated water offtake agreements, particularly in industrial zones and giga developments,” he said.

Evolution of water purification

In 2025, Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030.

Highlighting upcoming developments, Nada said: “In 2025, we anticipate an increased integration of renewable energy, with water desalination plants increasingly powered by solar energy and battery energy storage systems, further reducing their environmental impact and operational costs.”

He added: “We also expect to see a rise in the deployment of advanced membrane technologies, where next-generation membrane technologies will improve the efficiency and effectiveness of RO plants, reducing energy consumption and increasing water recovery rates.”

Nada also pointed to the role of digital technologies: “Digital technologies, such as AI, including machine learning, (will) enable real-time monitoring, optimization, and predictive maintenance of water purification plants.”

Kearney’s Tohme foresees three major shifts by 2025. He expects accelerated deployment of decentralized purification plants in underserved and remote areas, adoption of digital twins and predictive maintenance technologies to reduce operational costs and non-revenue water, and the strategic integration of treated water into agriculture and district cooling systems.

He concluded: “These trends are not just technical — they enhance Saudi Arabia’s economic resilience by separating water supply from climate stress.”


Oil Updates — prices rise as Iran-Israel conflict keeps floor under prices

Oil Updates — prices rise as Iran-Israel conflict keeps floor under prices
Updated 18 sec ago
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Oil Updates — prices rise as Iran-Israel conflict keeps floor under prices

Oil Updates — prices rise as Iran-Israel conflict keeps floor under prices
  • No visible production impact from conflict, ENI says
  • ‘War risk’ continues to underpin market

SINGAPORE: Oil prices rose on Tuesday, with analysts saying that uncertainty would keep prices elevated, even as there were no concrete signs of any production losses stemming from the Iran-Israel conflict for now.

Brent crude futures climbed 54 cents, or 0.7 percent, to $73.77 a barrel as of 9:30 a.m. Saudi time. US West Texas Intermediate crude was up 58 cents, or 0.8 percent, at $72.35. Both contracts rose more than 2 percent earlier in the trading session but also notched declines before bouncing back in volatile trading.

Prices traded higher as there was still risk of further unrest and potential disruption of oil supply from the key Middle East producing region.

However, there were no visible signs of supply loss for now, industry sources said.

The Israel-Iran conflict has not led to a loss in oil production, and the Organization of the Petroleum Exporting Countries still has spare production capacity, the chief executive of Italy’s Eni said on Tuesday.

Meanwhile, all the facilities of energy services firm Baker Hughes are operating normally in the Middle East, its chief executive Lorenzo Simonelli told Reuters on Monday.

The benchmark oil contracts settled more than 1 percent lower on Monday amid hopes that the conflict would ease after media reports Iran was seeking an end to hostilities.

However, concerns remained as US President Donald Trump in a social media post urged “everyone” to evacuate the Iranian capital of Tehran.

Entering its fifth day on Tuesday, the fighting has continued with Iranian media reporting explosions and heavy air defense fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.

“The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks’,” Priyanka Sachdeva, senior market analyst at Phillip Nova, said in an email.

“Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil,” Sachdeva added, referring to the US Federal Open Market Committee meeting, which guides interest rate decisions, that begins on Tuesday.

Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries. The concern is the fighting could disrupt its oil supply and raise prices, or Iran could retaliate by blocking shipping through the Strait of Hormuz.

US media on Monday night reported Trump was proposing renewed talks with Iran on a nuclear deal, even as shipping sources said a vessel collided with two other ships sailing near the Strait of Hormuz, highlighting risks to companies moving oil and fuel supplies in the region.


Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 

Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 
Updated 16 June 2025
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Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 

Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 
  • Deal includes 25 firm orders and purchase rights for an additional 25 aircraft
  • A350-1000s will enable long-haul connections ahead of high-profile events

JEDDAH: Saudi Arabia’s Riyadh Air has signed a deal to acquire up to 50 Airbus A350-1000 aircraft as it gears up to launch operations later this year. 

The agreement, signed at the 55th Paris Air Show, includes 25 firm orders and purchase rights for an additional 25 aircraft. The deal supports Riyadh Air’s plan to build a wide-body fleet capable of serving over 100 destinations globally by 2030.  

Owned by the Public Investment Fund, Riyadh Air was unveiled in March 2023 by Crown Prince Mohammed bin Salman as part of Saudi Arabia’s strategy to become a global aviation hub by expanding connectivity to over 250 destinations and tripling annual passenger traffic to 330 million. 

In a statement, Yasir Al-Rumayyan, PIF governor and chairman of Riyadh Air, said: “Our new national carrier is set to take to the skies in the near future, and as a fundamental element of the Kingdom of Saudi Arabia’s infrastructure, will connect our capital city to over 100 international destinations around the globe by 2030.

He added: “With its outstanding range, adding the Airbus A350-1000 to our fleet demonstrates the strategic contribution of Riyadh Air in positioning Saudi Arabia as a global aviation hub.” 

The A350-1000s, with an operational range exceeding 16,000 km, will enable long-haul connections ahead of high-profile events such as Riyadh Expo 2030 and the FIFA World Cup 2034. 

In April, the airline received its Air Operator Certificate from the General Authority of Civil Aviation, authorizing it to commence flight operations after meeting all regulatory, safety, and operational requirements. 

“Riyadh Air is making significant progress as we move towards our first flight later this year and agreeing this deal for up to 50 Airbus A350-1000 aircraft is an important statement of intent,” said Tony Douglas, CEO of Riyadh Air. 

The airline’s launch supports Saudi Arabia’s broader efforts to diversify its economy. According to the General Authority for Civil Aviation, the aviation industry generated $32.2 billion in tourism receipts and supported more than 958,000 jobs in 2023 — 241,000 in aviation and 717,000 in tourism-related sectors. 

“We play an important role in the evolution of the Saudi aviation ecosystem with the aim to create 200,000 direct and indirect jobs and contribute almost $20 billion to the Kingdom’s non-oil GDP,” added Douglas. 

The sector is a key pillar of the National Transport and Logistics Strategy, which aims to raise its gross domestic product contribution from 6 percent to 10 percent by 2030. 

Christian Scherer, CEO of commercial aircraft at Airbus, said: “This partnership reflects our shared commitment to innovation and decarbonization whilst connecting the vibrant Kingdom of Saudi Arabia to the world!”  


Closing Bell: TASI gains 135 points after positive market breadth 

Closing Bell: TASI gains 135 points after positive market breadth 
Updated 16 June 2025
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Closing Bell: TASI gains 135 points after positive market breadth 

Closing Bell: TASI gains 135 points after positive market breadth 
  • Market breadth was strongly positive with 223 gainers and 23 fallers
  • Trading activity remained robust with a total value of SR4.87 billion

RIYADH: Saudi Arabia’s Tadawul All Share Index closed higher on Monday, advancing 135.45 points, or 1.26 percent, to end at 10,867.04. 

Market breadth was strongly positive with 223 gainers and 23 fallers. Trading activity remained robust with a total value of SR4.87 billion ($1.2 billion), supported by optimism across key sectors. 

Among the top gainers, Red Sea International Co. rose 10 percent to SR36.85, while CHUBB Arabia Cooperative Insurance Co. added 9.98 percent to end at SR33.60.  

National Gypsum Co. and Saudi Enaya Cooperative Insurance Co. gained 9.97 percent and 8.02 percent, respectively, closing at SR19.42 and SR9.29. 

ACWA Power Co. also rose 6.94 percent to close at SR262.00. 

Among the worst performers, MBC Group Co. led losses with a decline of 3.11 percent to close at SR35.80.

Dr. Sulaiman Al Habib Medical Services Group followed, shedding 2.30 percent to settle at SR255, while Gulf Union Alahlia Cooperative Insurance Co. fell 1.63 percent to SR14.52.  

Middle East Specialized Cables Co. ended the session down 1.13 percent at SR30.55, and Dr. Soliman Abdel Kader Fakeeh Hospital Co. edged 0.75 percent lower to SR39.85. 

On the announcement front, ASAS Makeen Real Estate Development and Investment Co. began trading on the Nomu-Parallel Market on June 16, with shares priced at SR80 each. 

The company’s stock rose 14.38 percent to close at SR91.50 after it confirmed the signing of an SR240 million real estate development agreement with the National Housing Co. 

The stock is subject to daily and static price fluctuation limits of plus or minus 30 percent and 10 percent, respectively. 

The 42-month project includes the construction of 470 residential units in Riyadh and is expected to impact financial results in the fourth quarter following the issuance of the required license. 

ASAS Makeen offered 10 percent of its SR100 million capital, or one million shares, in an initial public offering that was nearly 1,949 percent oversubscribed. 

Tabuk Agricultural Development Co. closed 1.90 percent higher at SR10.18 after announcing it had received the full SR14.85 million operational financing loan from the Agricultural Development Fund.

The two-year facility is secured by a mortgage on the company’s land and investment shares. 


PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive


PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive

Updated 16 June 2025
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PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive


PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive

  • Order marks first direct deal with Airbus as PIF-owned lessor targets global growth
  • Agreement announced at Paris Air Show

RIYADH: Saudi Arabia’s Public Investment Fund-owned AviLease has signed a deal to purchase up to 77 Airbus aircraft, further expanding its next-generation, fuel-efficient fleet to meet rising global demand across passenger and cargo operations.

The agreement, announced at the Paris Air Show, includes 55 A320neo Family aircraft and 22 A350F freighters, with deliveries scheduled through 2033, according to a press release.

This marks AviLease’s first direct order with Airbus. The move aligns with the goals of the Saudi Aviation Strategy, which targets a rise in annual passenger capacity to 330 million and cargo throughput to 4.5 million tonnes by 2030, while enhancing the Kingdom’s status as a regional aviation hub.

“This dual order reinforces AviLease’s credentials as a leading lessor, and it demonstrates the broad appeal of our products among lessors and their airline customers,” said Benoit de Saint-Exupéry, executive vice president of sales for Airbus Commercial Aircraft.

Edward O’Byrne, CEO of AviLease, said: “We are proud to establish an Airbus order book, strengthening our position as a full-service, investment grade global lessor. The addition of these latest generation aircraft enhances our ability to offer modern, fuel-efficient fleet solutions to our airline partners in Saudi Arabia and around the world.”

Benoit de Saint-Exupery, Airbus executive vice president sales of the commercial aircraft business, and Edward O’Byrne, CEO of AviLease, the global aircraft lessor headquartered in Saudi Arabia, shake hands after a firm order signature for Airbus A350F freighters and A320neo Family aircraft, during the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 16, 2025. Reuters

The A350F freighters were selected following consultations with local stakeholders and will support Saudi Arabia’s expanding air cargo requirements. O’Byrne noted that AviLease has secured delivery slots in line with the Kingdom’s Vision 2030 goals.

“We thank our local partners and Airbus for the strong long-term partnership we have established and look forward to placing these aircraft across our valued customer base,” he said.

The A350F, according to Airbus, offers at least 20 percent lower fuel consumption, improved loading capabilities, and extended range.

The new order follows AviLease’s purchase of 30 Boeing 737 MAX aircraft in May—its first direct deal with a manufacturer—bringing its total new aircraft orders within two months to 107.

“In less than two months, AviLease has signed two major deals, reflecting its long-term ambition to become a top 10 global player in aircraft leasing and to strengthen its position as a national champion,” said Fahad Al-Saif, chairman of AviLease.

As of March 31, AviLease had a portfolio of 200 aircraft leased to 48 airlines around the world.

In April, the firm secured a $1.5 billion unsecured revolving credit facility to support its global expansion. The three-year facility attracted commitments from 20 international banks, including eight new lenders from Europe, Asia, and North America.

The company holds investment-grade ratings of Baa2 (stable) from Moody’s Ratings and BBB (stable) from Fitch Ratings.


OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply

OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply
Updated 16 June 2025
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OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply

OPEC sees solid 2nd-half of 2025 for world economy, trims 2026 supply

LONDON/MOSCOW: OPEC said on Monday it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider OPEC+ group in 2026.

In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns.

“The global economy has outperformed expectations so far in the first half of 2025,” OPEC said in the report.

“This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis.”

OPEC also said supply from countries outside the Declaration of Cooperation — the formal name for OPEC+ — will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month’s forecast.

Lower supply growth from outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for the wider group to balance the market. Rapid growth from US shale and from other countries has weighed on prices in recent years. (