Six investment opportunities enter industrial implementation phase, paving the way for seven factories, technology transfer, specialized jobs and global exports

RIYADH, Thursday, September 3, 2026 (WNP): Saudi Arabia is advancing into a new phase of water industry localization, transforming the Kingdom’s growing domestic demand and accumulated expertise in integrated water management into industrial, investment and technological opportunities aimed at strengthening water security, supply-chain resilience and global competitiveness.

Under the Water Industries and Services Localization Program, the Kingdom has identified 18 investment opportunities covering 18 components that represent approximately 90% of the core components of the water industry.

The Saudi Water Authority (SWA) announced during the “Localizing the Water Industry: Knowledge Transfer and Capacity Building” ceremony in Riyadh that six investment opportunities have entered the industrial implementation phase, including five new opportunities.

The development was marked by the signing of three industrial localization agreements and the inauguration of two factories. The agreements provide for the establishment of seven factories, with total investment across the six opportunities reaching approximately SAR2.8 billion.

The ceremony was attended by ministers, senior government officials, ambassadors and chief executives, underscoring the strategic importance attached to developing a competitive domestic water technology industry.

The localization program is designed to move the Kingdom beyond securing supplies towards manufacturing, developing and advancing water technologies locally. Cumulative domestic demand for the targeted opportunities is expected to exceed SAR15 billion through 2033, while demand across the Middle East and North Africa is estimated at approximately SAR65 billion, providing a substantial market for domestic industries and future exports.

The initiative is supported by a rapidly expanding industrial ecosystem. At least 70% of the production inputs required for the targeted components are available within the Kingdom, while the sector’s supplier base has expanded from 739 suppliers in 2022 to 3,441 in 2026.

Local content in the water sector has also increased from 45% in 2020 to 68.27% during the first half of 2026, strengthening the Kingdom’s capacity to establish and expand water technology manufacturing.

The localization drive encompasses reverse osmosis membranes, antiscalants, membrane cleaning chemicals, energy recovery devices, high-pressure pumps, Distributed Control Systems (DCS) and Supervisory Control and Data Acquisition (SCADA) systems.

These technologies form an interconnected industrial and technological value chain supporting water production and facility operations, while several of the targeted components also have applications in the energy, mining, agriculture and food sectors.

The program extends beyond the transfer of production lines, incorporating research and development, knowledge and technology transfer, and the development of national engineering and technical capabilities.

Under the localization agreements, at least 70% of employees in specialized positions must comprise the workforce, directly linking industrial investment with the development of Saudi engineering and technical talent.

Among the projects are four Italmatch Chemicals factories in Wa’ad Al Shamal, Jubail and Jeddah. The Wa’ad Al Shamal facility is set to become the company’s largest industrial complex outside Italy, with the four factories scheduled to begin production in 2028.

The projects also include a Torishima high-pressure pump factory in Jeddah, an Energy Recovery factory for energy recovery devices in Dammam and an alfanar factory in Riyadh for the production of DCS systems.

The Energy Recovery facility will be the company’s only manufacturing facility outside the United States, and is expected to supply approximately one-third of the company’s customers worldwide from the first quarter of 2027.

The projects are being distributed across several regions of the Kingdom, supporting greater integration of industrial value chains and expanding the export potential of locally manufactured water technologies.

The current localization drive builds on capabilities already established in the Kingdom. Toray’s reverse osmosis membrane factory in Dammam, which began production in 2025, is described as the largest manufacturing facility for desalination membrane technologies in the Middle East and the company’s second such facility outside Japan. Its addition brings the total number of factories associated with the localization program to eight.

Technology and knowledge transfer have also generated measurable improvements in operational efficiency. High-pressure pump efficiency has reached 91%, while locally produced reverse osmosis membranes helped increase the production capacity of the Al Khobar plant from 600,000 to 700,000 cubic meters per day without additional cost.

Saudi Arabia has also achieved self-sufficiency in locally produced reverse osmosis membranes, exporting them to 27 countries.

The program aims to reduce lead times for key components by 50% to 70%, enhancing supply-chain resilience, operational reliability and continuity of water services.

The six opportunities now entering implementation are expected to contribute approximately SAR4.36 billion to GDP by 2033, while creating around 3,090 direct and indirect specialized engineering and technical jobs.

They are also expected to reduce the cost of targeted products by 20% to 30%, with associated domestic demand estimated at approximately SAR11.37 billion. Depending on the product and external market demand, the projects are targeting exports equivalent to 20% to 50% of production.

Across the full localization program, attracted investment is expected to reach approximately SAR11 billion by 2033, alongside the creation of around 12,000 direct and indirect specialized engineering and technical jobs.

The initiative is ultimately aimed at converting the maturity of Saudi Arabia’s water sector and the strength of domestic demand into sustainable economic and technological value, while reinforcing national capabilities, attracting investment and expanding the Kingdom’s industrial base.

The integration of water security, industrial development, investment and local-content objectives is positioning Saudi Arabia to move from consuming water technologies to manufacturing, developing and exporting them, further strengthening its role as a regional hub for water technology manufacturing.

The transformation supports the objectives of Saudi Vision 2030, the National Water Strategy and the National Industrial Strategy, while reinforcing the Kingdom’s ambitions for leadership in integrated water management, industrial innovation and sustainable economic development.