Saudi Water Authority to finance SAR 2.4B Jubail, Al Khobar desalination systems

Argaam

a day ago

The Saudi Water Authority signed a financing agreement with the Asian Infrastructure Investment Bank (AIIB) and the National Infrastructure Fund (Infra) to support a strategic project aimed at developing the infrastructure of the first phase of the Jubail desalination system and the second phase of the Al Khobar system, at a total value of SAR 2.43 billion.
According to SPA, AIIB will provide over SAR 1.6 billion in funding under the agreement, marking one of the largest non-sovereign institutional financing deals supported by the bank to date. This strengthens public-private partnerships in strategic infrastructure projects. Infra will contribute SAR 750 million. The water sector is one of the key focus areas of the fund, aligning with the goals of Saudi Vision 2030.
The project aims to convert the Jubail Phase 1 and Al Khobar Phase 2 desalination systems from multi-stage thermal desalination to reverse osmosis (RO) technology. This shift is expected to improve energy efficiency, increase water production capacity, and extend the operational lifespan of both systems by around 20 years, in support of Saudi Arabia's sustainability and climate goals under Vision 2030.
The Al Khobar Phase 2 desalination system has achieved a global milestone as the world's largest seawater desalination plant using RO technology, with a record production capacity of 670,852.4 cubic meters per day. It was also built on the smallest land area globally for a plant of its kind, thanks to the application of advanced technical methodologies and value engineering.
This agreement follows a joint announcement made earlier this year between the AIIB and the Government of Saudi Arabia, which laid the groundwork for long-term cooperation in the areas of water, wastewater, renewable energy, sustainable transport, and urban development.