How Saudi Arabia is engineering a water-secure future

How Saudi Arabia is engineering a water-secure future
Through strong policies, innovative technologies, and large-scale infrastructure projects, Saudi Arabia is creating a resilient, efficient water system that ensures secure access for future generations. (Reuters)
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Updated 22 March 2025
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How Saudi Arabia is engineering a water-secure future

How Saudi Arabia is engineering a water-secure future
  • KSA is leveraging advanced technologies to drive long-term sustainability and operational efficiency

JEDDAH: Saudi Arabia is tackling water scarcity with bold steps toward a sustainable future. Through its National Water Strategy and Vision 2030, the Kingdom is pioneering solutions to ensure long-term water availability.

Investing in desalination, wastewater reuse, and smart water management, Saudi Arabia is transforming the sector. 

The National Water Co. supports Vision 2030 by accelerating projects, improving infrastructure, and implementing digital water management for sustainability.

Water sustainability strategy

Hany Labib, chief operating officer of international consulting and engineering organization Dorsch Middle East, told Arab News that Saudi Arabia’s structured approach to water sustainability ensures that security of the natural resource remains central to national development.

“The National Water Strategy and Vision 2030 have created a framework that balances infrastructure expansion, regulatory reforms, and advanced water management practices to address the Kingdom’s water scarcity challenges,” he said.

Labib noted that a key pillar of this strategy is investing in water infrastructure, highlighting his company’s partnership with Saudi Arabia’s NWC to oversee 253 projects, enhancing efficiency and service delivery.

“These projects are designed to reinforce water distribution networks, improve wastewater treatment, and ensure long-term water reliance and a positive customer experience,” he added. 

Public awareness campaigns underscore conserva-tion’s importance amid climate pressures and population growth.

Adham Sleiman, water utilities expert at Kearney MEA

Another key initiative is Saudi Arabia’s focus on optimizing resource use by reducing water losses and maximizing wastewater reuse.

“With a considerable investment, this key initiative is not just addressing immediate water demands but also ensuring the sustainability of resources for future generations. By aligning sustainability goals with economic and environmental objectives, Saudi Arabia is setting a benchmark for comprehensive water management strategy within the region,” said Labib.

Smart water tech push

Saudi Arabia is leveraging advanced technologies to drive long-term sustainability and operational efficiency in the water sector.

Labib highlighted future technologies shaping Saudi Arabia’s sustainability and efficiency goals, noting the Kingdom’s leadership in smart water management solutions.

“With a growing number of water and wastewater projects in motion, technology is playing an increasingly critical role in optimizing resources, reducing waste, and ensuring long-term viability,” he said.

The Dorsch Middle East official explained that one of the most transformative innovations is the expansion of treated wastewater reuse, reducing reliance on freshwater sources while meeting industrial and agricultural needs.

“In parallel, real-time digital monitoring systems are improving network efficiency by detecting leaks, tracking consumption patterns, and optimizing distribution,” he said. 

Labib noted that low-energy desalination and next-generation filtration technologies will boost sustainability in water production.

He emphasized that through these innovations, Saudi Arabia is not only securing its own water future but also creating scalable solutions that other arid regions can adopt.

“In a fast-changing world of technology, Saudi Arabia seeks to be at the forefront of emerging technologies and make use of data in their water investment decisions. AI is a new tool which can greatly assist in the analysis of data arising from smart water systems including customer usage patterns,” said Labib.

Integrated water strategy

Adham Sleiman, water utilities expert at Kearney MEA, highlighted Saudi Arabia’s integrated water sustainability approach under its national strategy, emphasizing its long-term vision.

“The Kingdom advances desalination, groundwater conservation, and wastewater reuse, as well as leveraging smart technologies and renewable energy. Investments in digital monitoring, smart metering, and AI-driven leak detection enhance efficiency,” he said.

Sleiman noted that the strategy strengthens policy frameworks and governance to optimize water use, highlighted by the recent establishment of the Saudi Water Authority. In 2024, the NWC treated 2.1 billion cubic meters of wastewater, ensuring water security, sustainability, and efficiency. “These efforts reinforce Saudi Arabia’s commitment to a resilient water future,” Sleiman said. 

Saudi Arabia is at the center of water sustaina-bility initiatives, hosting major forums like the Saudi Water Forum and the One Water Summit.

Azamat Zhangeldin, manager, energy and process industries at Kearney MEA

PPPs driving innovation in sector 

As for public-private-partnerships in the sector, Sleiman emphasized that PPPs are key to advancing Saudi Arabia’s water infrastructure in alignment with Vision 2030, driving innovation and investment in the sector.

“The Saudi Water Partnership Co. has attracted over SR45 billion ($12 billion) in private sector investments, fostering efficiency and innovation in water production and treatment. Saudi water ecosystem’s collaborations with international firms introduce advanced technologies, such as energy-efficient desalination and smart water management systems,” Sleiman said.

He added that these partnerships distribute risks and leverage private sector expertise, leading to improved service quality and accelerated project delivery. “By expanding PPP frameworks, Saudi Arabia is strengthening its water security and promoting sustainable resource management,” said Sleiman.

Addressing climate risks 

Azamat Zhangeldin, manager, energy and process industries at Kearney MEA, highlighted how Saudi Arabia is preparing to address climate-related risks, such as prolonged droughts or shifting rainfall patterns, to ensure long-term water availability and resilience.

“Saudi Arabia is at the center of water sustainability initiatives, hosting major forums like the Saudi Water Forum and the One Water Summit, emphasizing integrated policies, economic development, and accelerating UN SDG (sustainable development goal) 6,” he told Arab News.

He added that recognizing limited freshwater sources, the Kingdom has invested heavily in desalination, with 33 plants and 139 purification facilities producing 11.5 million cubic meters daily.

“Public awareness campaigns underscore conservation’s importance amid climate pressures and population growth,” he said, concluding that these solutions, encompassing desalination, purification, dam construction, and flood management, enhance water resilience and storage, ensuring long-term availability and mitigating climate-induced risks.

Balanced approach

Dorsch Middle East’s Labib emphasized that sustainable urban planning is key to developing water security, citing initiatives such as Green Riyadh, which incorporate water-efficient irrigation and landscaping for long-term conservation.

He added that through strong policies, innovative technologies, and large-scale infrastructure projects, Saudi Arabia is creating a resilient, efficient water system that ensures secure access for future generations.

“The Kingdom’s ability to implement projects at scale while maintaining efficiency and resource optimization makes it a model for other nations facing similar water challenges,” said Labib.

He believes Saudi Arabia is creating a replicable blueprint for sustainable water management, and added: “The Kingdom’s success lies in its centralized water strategy, where strong governance frameworks, public-private partnerships, and technological advancements work in unison to achieve long-term water security.”


Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits
Updated 23 March 2025
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Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits

RIYADH: The net profits of public joint companies listed on the Muscat Stock Exchange surged 52.6 percent year on year to reach 1.339 billion Omani rials ($3.48 billion) in 2024.

This increase coincided with the listing of OQ Exploration and Production and OQ Base Industries in 2024, while energy companies recorded improved performance, with some moving from losses to profits, the Oman News Agency reported.

This falls in line with strong growth in Arab stock exchanges in 2024, where trading values surged 58.1 percent to surpass $1.03 trillion.

It also aligns with a 21.3 percent increase in regional trading volumes and a 35.9 percent rise in the number of trades during the year, reflecting a dynamic financial landscape with varied market performances.

Statistics from the Oman News Agency, based on preliminary financial results for around 90 public joint-stock firms with fiscal years ending in December, revealed improved performance across most companies in the banking, industrial, investment, service, and telecommunications sectors.

The data further showed that the total number of companies that reported profits last year was 69, compared to 68 entities that reported profits in 2023, excluding the financial results of funds and firms that were not listed on the stock exchange during 2023.

The figures also indicated that OQ Exploration and Production topped the list of companies with the highest net profits, totaling 326.5 million rials.

Bank Muscat came in second with 225.5 million rials, followed by Sohar International Bank, which came in third with 100.2 million rials.

Omantel ranked fourth after recording net profits at the local level of 69.4 million rials. The National Bank of Oman placed fifth with net profits of approximately 63.1 million rials, followed by OQ Gas Networks, which came in sixth with 47.8 million rials.

The data further showed that Bank Dhofar placed seventh with 43.6 million rials, while Ahli Bank ranked eighth with 41.6 million rials.

Ominvest placed ninth with net profits of an estimated 35.9 million rials, while Oman Arab Bank ranked tenth with net profits of 30.4 million rials.

Preliminary data showed that the losses recorded by public joint-stock companies decreased last year to around 38.1 million rials, compared to losses of 50.6 million rials in 2023. However, the number of firms recording losses last year jumped to 21, compared to 20 companies that recorded setbacks in 2023.

Last year, five companies flipped from losses to profits, including SMN Power Holding, which reported group net profits of 4.5 million rials in 2024, up from 6.4 million rials in 2023. Sohar Power Co. also posted net profits of about 22 million rials, compared to 5.1 million rials the previous year.

Conversely, six companies turned from profits to losses, most notably Leva Group, which recorded losses of 5 million rials in 2024, compared to net profits of 6.3 million rials in 2023, and Oman Refreshments, which recorded group losses of 2.7 million rials last year, compared to a net profit of 6.3 million rials in 2023.

Galfar Engineering and Contracting also recorded a group loss of 3.9 million rials in 2024, compared to a profit of 574,000 rials in 2023.


Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 
Updated 23 March 2025
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Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 

JEDDAH: Riyadh has unveiled new investment opportunities for 2025, covering commercial, residential, retail, industrial, and leisure projects to boost the city’s economy and development. 

The Riyadh municipality introduced 20 new investment prospects, covering more than 175,000 sq. meters across over 20 sites. These include mixed-use developments, existing retail spaces, mobile sports clubs, and areas allocated for concrete and construction material factories — along with a cafe and ATM setup. 

Investors can access the projects through the Furas online platform, designed as the municipality’s primary hub for real estate and municipal investment opportunities, the Saudi Press Agency reported. 

The initiative is part of a broader strategy to accelerate private sector participation in urban development, aligning with Saudi Arabia’s Vision 2030. 

“This step comes as an extension of the Riyadh municipality’s strategy to enhance the role of the private sector in urban development, by enabling it to participate effectively in developing facilities and services, and achieving integration between government and investment efforts to meet the needs of society,” the SPA report stated.  

“It also contributes to raising the quality of urban life and achieving the goals of the Kingdom's Vision 2030,” it added.  

Contracts for the investment sites range from five to 25 years, covering multiple districts across Riyadh. Key locations include Jarir, Al-Deerah, and Al-Rawdah, alongside Al-Basateen, Al-Qadisiyah, and Al-Jazirah. 

Additional areas feature Al-Hamra, Al-Morouj, and Al-Yamamah, as well as Eastern Suwaidi, Al-Masha’il, Al-Manakh, Badr, and Taybah. 

Investors are invited to review competition requirements and the application process via a dedicated link, with the envelope opening set for May 2025. 

In a parallel push to enhance the capital’s livability, 87 new parks were inaugurated over the last three years — raising the city’s total to over 700, up from 615. The parks cover more than 745,000 sq. meters, featuring nearly 25,000 shrubs and 7,000 trees planted across different districts to ensure equitable access to green spaces. 

The parks now serve as dynamic community hubs, hosting cultural, social, entertainment, and sporting activities. The move underscores Riyadh Municipality’s commitment to improving quality of life, fostering social cohesion, and advancing Vision 2030’s urban sustainability goals. 

With these investments and infrastructure developments, Riyadh is positioning itself as a leading model for vibrant, sustainable urban growth in the region. 


Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 
Updated 23 March 2025
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Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 

RIYADH: Global economic growth is expected to average around 3.1 percent in the next five years, below the pre-pandemic level of 3.7 percent, according to an International Monetary Fund official.

Speaking at the China Development Forum in Beijing on March 23, Nigel Clarke, deputy managing director of the IMF, said that total factor productivity internationally, which measures the ability to create more outputs with the same inputs, has been growing at a slower pace since the 2008-09 global financial crisis.

The worldwide growth projections of the IMF indicate that countries in the Middle East are expected to show future financial resilience. 

In January, the UN financial agency said Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026. 

“Global growth is steady but underwhelming. Our five-year ahead growth forecast remains at 3.1 percent— well below the pre-pandemic average of 3.7 percent,” said Clarke. 

He added: “Patterns of trade and capital flows are shifting. AI (artificial intelligence) is rapidly advancing. Trade is no longer the engine of global growth it used to be. Divergences across countries are widening. And governments worldwide are shifting their policy priorities.” 

Clarke argues that countries should pursue structural reforms to boost productivity and ensure medium-term growth.

He further said that in aging societies— where the share of the working-age population is shrinking— productivity growth plays a vital role in maintaining living standards. 

“It also applies to emerging markets and developing economies trying to close the gap with richer countries. To provide better jobs and a higher standard of living, they too need to ignite productivity growth,” added the deputy managing director.

He added that this productivity growth could be achieved only by innovation, technological advancements, and ample investments in research and development. 

Citing IMF research, Clarke highlighted that productivity growth in advanced economies could increase by 0.2 percentage points a year with a hybrid policy that boosts public research expenditure by a third and doubles subsidies to private research. 

He noted that AI could boost global gross domestic product growth between 0.1 and 0.8 percentage points per year in the medium term, depending on how it is adopted.

Clarke also underscored the necessity of better resource allocation in the future to maintain a healthy global productivity level. 

“The movement of labor and capital toward more productive firms and industries has long been an important source of overall productivity growth. As workers move from farms to factories, for example, their productivity increases dramatically. So too do their income and living standards, with spillovers to the whole economy,” he said. 

According to Clarke, effective measures should be taken to strengthen the private sector, as well as create an environment that could help them thrive. 

“Through our policy advice, lending and capacity development, the IMF has consistently supported countries in establishing macroeconomic and financial stability as a foundation for growth,” said Clarke. 

He added that a new IMF Advisory Council on Entrepreneurship and Growth has been created to help countries develop ideas on easing regulatory barriers, adapting tax systems, and incentivizing long-term savings to boost innovation.


Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030
Updated 40 min 41 sec ago
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Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

RIYADH: Saudi Arabia’s sovereign wealth fund and five of its regional counterparts are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.  

In its latest report, Deloitte Middle East noted that the region, home to six of the world’s 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.  

The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia’s Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion. 

Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: “The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.” 

She added: “We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.” 

The report also highlighted that Gulf SWFs maintained an “aggressive investment pace,” deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. 

Deloitte listed five major players shaping the region’s investment landscape: Saudi Arabia’s PIF, ADIA, Abu Dhabi’s Mubadala, Abu Dhabi Developmental Holding Co., and QIA. 

Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023. 

Asia takes center stage 

Deloitte’s analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets. 

The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India. 

Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024. 

Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms. 

“This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,” Deloitte noted. 

The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities. 

This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies. 

This shift coincides with the rise of new investment vehicles, particularly “Royal Private Offices,” which now control an estimated $500 billion in assets. 

Combating challenges 

Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated. 

The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.  

The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent. 

“Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore’s Temasek or Canada’s Maple Eight,” Deloitte stated. 

The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players. 

It concluded: “Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.” 


Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 
Updated 23 March 2025
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Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

RIYADH: Global borrowing hit a record $25 trillion in 2024, a $10 trillion surge from pre-pandemic levels, sparking concerns over sustainability, a new report showed.

The Organization for Economic Co-operation and Development said in its latest study, “Financing Growth in a Challenging Debt Market Environment,” that the figure is nearly triple the amount raised in 2007, driven by rising sovereign and corporate debt amid higher borrowing costs and economic volatility. 

The surge in borrowing reflects a fragile global economy grappling with slower growth, persistent inflation, and geopolitical uncertainty, which have forced governments and companies to seek more debt to fund operations and maintain public services. 

OECD Secretary-General Mathias Cormann said: “Sovereign and corporate debt levels continue to grow across the world, at a time of increasing borrowing costs and market volatility.” He urged governments to improve public spending efficiency, prioritize productive investments, and incentivize businesses to expand capacity. 

Rising debt levels

The analysis warned that debt levels are projected to continue rising into 2025, with the aggregate central government marketable debt-to-gross domestic product ratio in OECD countries expected to reach 85 percent. This represents an increase of more than 10 percentage points since 2019, nearly double the 2007 level.

“The increase in 2024 was the first since 2020, reflecting slower projected GDP (gross domestic product) growth of around 2 percent annually during this period, compared to over 4 percent in 2022-23, when the economy was recovering from the pandemic,” the report said. 

Bond yields in several major markets surged despite declining policy rates, exacerbating the challenges posed by higher sovereign and corporate indebtedness. This scenario increases borrowing costs and limits the fiscal space available for future investment at a time when substantial capital is needed to drive economic growth, respond to demographic changes, and meet defense and infrastructure needs. 

Record bond issuance

Sovereign bond issuance in OECD countries is projected to reach a historic high of $17 trillion in 2025, up from $14 trillion in 2023. The total outstanding debt is expected to grow from $54 trillion in 2023 to nearly $59 trillion in 2025.

Emerging markets and developing economies also witnessed a sharp increase in sovereign borrowing, with total debt issuance rising from approximately $1 trillion in 2007 to over $3 trillion in 2024. China accounted for 45 percent of the total issuance in 2024, a rise from the 17 percent recorded between 2007 and 2014.

By the end of 2024, global corporate bond debt is set to reach $35 trillion, continuing a decades-long borrowing trend, mainly driven by non-financial companies whose debt has nearly doubled since 2008.

Higher borrowing costs

Governments and corporations are beginning to feel the weight of higher borrowing costs. In 2024, interest payments as a share of GDP increased in about two-thirds of OECD countries, reaching an average of 3.3 percent — a growth of 0.3 percentage points from the previous year. 

“This means spending on interest payments is greater than government expenditure on defense in the OECD on aggregate,” the report explained. 

Additionally, refinancing risks have grown significantly, with nearly 45 percent of sovereign debt in OECD countries set to mature by 2027. Corporate bond markets face similar pressures, with approximately one-third of all outstanding corporate bond debt scheduled to mature in the next three years. 

Refinancing this debt at higher interest rates could further strain public and corporate finances.   

Debt ownership shifts 

The withdrawal of central banks from sovereign debt markets continued in 2024, with their holdings of domestic government bonds in OECD economies shrinking from 29 percent of total outstanding debt in 2021 to 19 percent in 2024.

Simultaneously, domestic households increased their share from 5 percent to 11 percent, while foreign investors expanded their holdings from 29 percent to 34 percent. This transition to a more price-sensitive investor base could amplify market volatility, particularly if new investors demand higher yields.

Climate financing challenges

A key theme of the OECD’s report is the financing required to meet global climate change objectives.

“If growth rates for public and private investment in the climate transition continue in line with recent trends, advanced economies will not be aligned with the Paris Agreement goals until 2041,” the study said. 

The situation is even more difficult for emerging markets other than China, which would face a cumulative investment shortfall of $10 trillion to meet the Paris Agreement goals by 2050.

The report suggested that increasing public sector financing for climate initiatives could substantially raise public debt-to-GDP ratios. Alternatively, greater reliance on private capital would necessitate rapid development of capital markets, particularly in emerging economies.

“Financial regulation reforms will be essential, particularly to enhance capital market development in emerging markets,” the study noted.