Saudi Arabia targets $2.93 billion to build a local water technology industry

Saudi Arabia is expanding its water manufacturing base, using rising domestic demand to attract investment, localize key technologies and strengthen supply chains.

According to the Saudi Press Agency, the Kingdom’s Water Industries and Services Localization Program includes 18 investment opportunities covering around 90% of the water industry’s core components. Local demand for these products is expected to exceed $4 billion through 2033, while the wider MENA market is estimated at around $17.3 billion.

Six opportunities have now entered the industrial implementation phase, including five new projects. Three localization agreements have been signed, and two factories have been inaugurated, bringing the total investment across the six opportunities to $747 million and supporting the development of seven factories.

The targeted technologies include reverse osmosis membranes, antiscalants and membrane-cleaning chemicals, energy recovery devices, high-pressure pumps, Distributed Control Systems, and Supervisory Control and Data Acquisition systems. Several also serve the energy, mining, agriculture, and food sectors.

The program is also designed to support technology transfer and local skills development, rather than simply moving production to Saudi Arabia. At least 70% of specialized positions under the agreements must be filled by local employees.

Saudi Arabia’s domestic supply base has expanded alongside localization efforts. The number of suppliers serving the sector increased from 739 in 2022 to 3,441 in 2026, while local content rose from 45% in 2020 to 68.27% in the first half of 2026. At least 70% of the production inputs required for the targeted components are available domestically.

Projects include four Italmatch Chemicals factories in Wa’ad Al Shamal, Jubail and Jeddah, a Torishima high-pressure pump factory in Jeddah, an Energy Recovery facility in Dammam and an alfanar factory in Riyadh producing Distributed Control Systems.

The factories are expected to support both domestic supply and exports, with Energy Recovery expecting its Saudi facility to supply around one-third of its global customers from the first quarter of 2027.

The localization drive is already supporting exports. Saudi Arabia has achieved self-sufficiency in reverse osmosis membrane production and now exports the technology to 27 countries. The program also targets a 50% to 70% reduction in lead times for key components.

The economic impact is expected to extend beyond water security. The six projects entering implementation are forecast to contribute around $1.16 billion to GDP through 2033, create 3,090 direct and indirect specialized jobs and reduce the cost of targeted products by 20% to 30%.

Across the wider program, investments are expected to reach around $2.93 billion by 2033, with approximately 12,000 specialized jobs targeted. The program aims to increase local manufacturing capacity while positioning Saudi Arabia as a regional base for water technology production and exports.