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Depletion of Fresh Water Sources Prompts Investments in Water Infrastructure in Saudi Arabia

Moneylife | 9.18.12

The water infrastructure in Saudi Arabia is better than in other MENA countries, but the government still needs to adopt best practices to better manage water resources and meet international standards.

The government charges only about only 25 cents (10 halalas) per cubic meter of water, even though the cost of water production per cubic meter is around USD 2.6- USD 4.0 (SR10 to SR 15). This translates to higher per capita consumption.

With a proper water ministry in place, the legislation or regulations are expected to become stringent. The authorities hope to achieve complete water coverage throughout the country with the enforcement of the National Water Law and by-laws and further investments as part of its Ninth Development Plan.

“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,” said Frost & Sullivan Environment and Building Technologies Analyst. “This investment aims to increase wastewater network coverage to 100.0 per cent from the current 45 per cent.”

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