Saudi water sector set for huge near-term growth
Report forecasts market value of $3.66bn in 2015
New research by Frost & Sullivan has found that market earned revenues from Saudi Arabia’s water and wastewater sector were US $1.94 billion in 2011, and have forecast that this will grow to $3.66 billion by 2015. Saudi Arabia is currently considering substantial investments to meet rising demand on its networks, pushed up by population growth and increased urbanisation.
The report authors state that “The National Water Company (NWC) is planning to invest USD 23.00 billion in Saudi Arabia’s sewage collection and treatment infrastructure over the next 20 years. This investment aims to increase wastewater network coverage to 100.00 per cent from the current 45 per cent.”
The government in the Kingdom is currently charging around 25 cents per cubic metre of water, despite cost of water production per cubic metre of around $2.6 - $4. The report suggests that this low cost naturally leads to higher water consumption.
“Reliability and efficiency are the other key factors considered by end users while choosing water and wastewater equipment suppliers. Further, a company that provides complete solutions and lowers the operational cost to the end user will occupy the central position in the market.”