Saudi Arabia plans seven water manufacturing plants to reduce reliance on imports

Saudi Arabia is preparing to establish seven manufacturing plants for water-industry components and technologies as it moves to meet more domestic demand through local production.

The contracts and agreements for the new facilities are due to be signed during a Saudi Water Authority ceremony in Riyadh on Wednesday.

The seven plants will join one existing facility, bringing the number of major national manufacturing sites covered by the initiative to eight.

The event, titled “Localizing the Water Industry: Knowledge Transfer and Capacity Building”, is being held with government organisations and Saudi and international industrial companies.

 Ministers, senior officials, ambassadors and chief executives are expected to attend.

The program represents a shift in the authority’s localisation work from presenting potential investments to carrying out manufacturing projects.

It is also intended to replace some imported water-industry products with locally made components and technologies.

The authority aims to develop Saudi industrial and technical capabilities that can serve the domestic market and compete internationally.

The water-industry localisation program contains 18 investment opportunities in priority manufacturing and service areas.

Demand for the targeted products and services in Saudi Arabia is expected to exceed SAR15 billion during the next five years.

Their market across the Middle East and North Africa is estimated at about SAR65 billion, providing potential opportunities for future Saudi exports.

Increasing domestic manufacturing capacity is expected to give the water sector more reliable access to essential equipment and technologies.

The program is intended to strengthen water security, reduce supply-chain risks and increase the use of Saudi products and expertise.

It supports Saudi Vision 2030, the National Water Strategy and the National Industrial Strategy.

The authority also expects the initiative to develop local content and create further opportunities for non-oil exports.