Saudi Abrabia, seeking water in desert

This is the investment opportunity map done by Deutsche Bank Research. We can see that Saudi Abrabia was given a highest score, colored by the darkest blue on map, which means it is believed by DB research deserves most investor attention.

Last September, Reuters published a feature about how Saudi Arabia’s water scarcity is eating into its oil revenue. “Water use in the desert kingdom is already almost double the per capita global average and increasing at an ever faster rate with the rapid expansion of Saudi Arabia’s population and industrial development.”

Saudi Arabia is currently in water crisis.

In April, Dardeer, senior manager for corporate projects says that National Water Co., Saudi Arabia’s state-owned utility, plans to spend $66.4 billion on plants and repairs over the next 10 years.

The water and sanitation system in this country is characterized by significant investments in seawater desalination, water distribution, sewerage and wastewater treatment leading to a substantial increase in access to drinking water and sanitation over the past decades. About 50% of drinking water comes from desalination, 40% from the mining of non-renewable groundwater and 10% from surface water, especially in the mountainous South-West of the country.
Producing 24 million cubic meters of water per day from desalination, about half the world’s total, Saudi Abrabia is building the largest solar-powered water desalination plant in the world in the city of Al-Khafji on the shores of the Persian Gulf. The recent initiative in Saudi Arabia to enlarge its water desalination capacity using high-tech green technology is a smart move, multi-dimensionally strategic and future-oriented.

DB research believes that over the coming years, demand for water technologies‖ will rise. These include not only sewage treatment facilities, filter systems and disinfection procedures, irrigation technologies, technical equipment (e.g. pumps, compressors and fittings), seawater desalination facilities but also upstream and downstream areas across the value chain such as civil engineering and pipeline construction or the provision of water meters and billing systems. That will create huge potential for investors to seek profitable business, especially for those equipped with water technologies. Early the Saudi Arabia has hired a team of German scientists to search for groundwater trapped in aquifers beneath the massive kingdom’s sands.

More to come in the future? Only if you possess the water technology.  Remember, the country largely covered by desert is one of the wealthiest in the world.



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