Gov't Push Spurs Firms to Hire More Saudis
Saudi Arabia's drive to nationalize its labor force gathered pace in the first quarter of 2025, with more than 143,000 Saudis landing jobs thanks to government-backed employment programs, a 93% jump compared to the same period last year.
The figures, announced by the Human Resources Development Fund (Hadaf), underline the growing impact of empowerment initiatives under the Kingdom's Vision 2030 reform plan. They also reflect a stronger alignment between public and private sector efforts to boost workforce participation.
The surge in employment was fuelled by a wide array of support programs offered by the fund, including training, career counselling, and empowerment services, which benefited more than 1.18 million individuals in Q1 alone, marking a 4% year-on-year increase.
The number of companies that tapped into these programs also rose to over 98,000, up 37% from the previous year. Nearly 94% of those were small, medium, or micro enterprises, indicating a broad base of impact across different regions and sectors of the Kingdom.
Ali Al Eid, a human resources expert, told Asharq Al-Awsat that Hadaf's continued role in shaping the job market has strengthened its partnerships across industries and accelerated the empowerment of local talent.
'The high growth rate in employment support reflects a tangible shift in national empowerment strategies,' Al Eid said, adding that the programs are increasingly tailored to meet both immediate labor market needs and long-term ambitions.
He noted that targeting small and medium-sized enterprises (SMEs) was particularly significant, as they form the backbone of the local economy and often represent the segment most in need of support.
'The Saudi labor market is evolving rapidly, focusing on investing in local talent, promoting entrepreneurship, and expanding employment in promising sectors,' Al Eid said.
'Investing in human capital is the smartest route to economic sustainability, and we're now seeing the results of Vision 2030 in action.'
Badr Al-Enzi, another HR consultant, highlighted the pivotal role played by Hadaf since the launch of Vision 2030, particularly in empowering young Saudis for private sector roles.
He said Hadaf initiatives have enhanced job security and upskilled Saudis in technical and specialist fields, especially in fast-growing industries such as automotive manufacturing, logistics, digital technology, and app development.
'These programs were crucial in supporting Saudization policies rolled out by the Ministry of Human Resources,' Al-Enzi said. 'They also played a central role in boosting women's participation in the workforce, which has more than doubled from 17% in 2017 to 36% by the end of 2024.'
Last year alone, around 437,000 Saudi nationals joined the private sector, bringing the total number of Saudis employed in the sector to nearly 2.4 million by the end of 2024.
Al-Enzi added that 43.8% of Saudi working women now hold mid-to-senior managerial roles, signalling major strides in female empowerment and progress toward Vision 2030's targets.
Hadaf disbursed 1.83 billion riyals ($488 million) in support programs during Q1 2025, a figure that reflects the scale of the Kingdom's investment in building a qualified capable workforce to steer its economic and social transformation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
What will it take for Syria to win permanent US sanctions relief?
LONDON: After 13 years of war and international isolation, a glimmer of hope emerged for Syria on May 23 when the US government announced a temporary easing of sanctions, ushering in an opportunity for recovery and reconstruction. But Syrian officials warn the relief may be short-lived. Without the full and permanent lifting of restrictions, they say, the door to recovery could close just as quickly as it opened, especially with fresh conditions now attached. Syria's interim government, led by President Ahmad Al-Sharaa, must navigate multiple US demands, from expelling foreign militants to integrating Kurdish forces and verifying the destruction of chemical weapons. The road to full sanctions relief is further complicated by political realities in Washington, where a divided Congress remains largely opposed to reengaging with Damascus. 'There is considerable disappointment in Damascus that sanctions are only being suspended temporarily and not definitively,' Joshua Landis, director of the Center for Middle East Studies at the University of Oklahoma, told Arab News. 'But many of the sanctions were imposed by Congress and will have to be lifted by Congress.' Following President Donald Trump's announcement at the Gulf Cooperation Council summit in Riyadh, where he offered Syria 'a fresh start' by removing sanctions, the Treasury Department issued General License 25, temporarily suspending key restrictions. The Treasury said relief was conditional on Syria denying safe haven to terrorist groups and protecting religious and ethnic minorities. Parallel to this, Secretary of State Marco Rubio announced a 180-day Caesar Act waiver to enable humanitarian aid to enter Syria and help restore essential services like electricity, water, and sanitation. • Western sanctions began in 1979 and expanded sharply after 2011 in response to Bashar Assad's crackdown on protests. • Arms embargoes and dual-use controls remain, and new targeted sanctions have been imposed on human rights abusers. • In May, the US and EU lifted most economic sanctions after Assad's ouster and the formation of a transitional government. This relief marked the first phase of a broader US strategy aimed at pushing Syria's interim government to meet a series of sweeping demands. A US official told AFP that while some Trump administration officials support immediate sanctions relief, others prefer a phased approach, making broader actions conditional on Syria meeting specific targets. This shift reflects a broader recalibration of Western expectations. 'With the fall of the Assad regime, the US and its European allies have clearly stepped back from the demands they once directed at Damascus,' Syrian-Canadian analyst Camille Otrakji told Arab News. 'US Vice President JD Vance has repeatedly stated that his country will not promote democracy anymore. The new priority is stability, seen as a foundation for regional development and future peace agreements.' As part of that shift, Washington's earlier insistence on compliance with UN Security Council Resolution 2254 — adopted in 2015 to guide Syria's democratic transition — has largely faded. In its place, Otrakji said, are more focused and immediate goals. These include 'removing foreign fighters from the Syrian army, and possibly from Syria as a whole, reaching a settlement with the Kurds, and reducing violence against Alawite communities in the coastal region,' he added. Yet even these goals appear increasingly flexible. On June 2, the US gave its approval to a Syrian government plan to integrate thousands of foreign fighters into the national army, as long as the process remains transparent, Reuters reported. This section contains relevant reference points, placed in (Opinion field) Despite the evolving benchmarks, progress is underway. Landis explained that Al-Sharaa is already working to fulfill US demands, including the removal of Palestinian militants. 'Al-Sharaa has arrested or expelled the top Palestinian militia leaders and militants living in Syria,' Landis said. Leaders of pro-Iran Palestinian factions allied with the Assad regime have left Syria under pressure from the new authorities, handing over their weapons as part of a broader US demand to curb Iran-backed groups, two Palestinian sources told AFP on May 23. Syria is also under pressure to integrate the US-backed and Kurdish-led Syrian Democratic Forces into the national military and take responsibility for prisons and camps holding thousands of Daesh fighters and their families. 'Securing Daesh detention centers will require coordination with the Autonomous Administration of North and East Syria and the SDF,' Landis said. 'The effort to find a compromise with US-backed Kurdish forces continues, despite some important differences. 'Two Aleppo neighborhoods were recently turned over by the YPG to Al-Sharaa's forces. More recently, a prison exchange was negotiated between the new Syrian military and the SDF.' After Daesh's 2019 defeat, thousands of suspected affiliates were detained in northeast Syria. The largest camps, Al-Hol and Roj, are run by the Kurdish-led AANES and guarded by the SDF. Security at the camps is fragile, with the SDF stretched by conflict with Turkish-backed forces and resource shortages. A 2023 Daesh attack on Al-Hasakah prison highlighted the risk of mass escapes. Aid cuts and a potential US withdrawal from northeast Syria threaten further destabilization, raising fears that thousands of Daesh-affiliated detainees could escape, posing a threat to global security. Recent developments suggest progress. In March, the Al-Sharaa government reached key agreements with the Kurdish-led administration to integrate the SDF into the national army, place Kurdish-run institutions under central control, and jointly manage Daesh detainees. The first formal steps followed in May, when Kurdish authorities and Syria's transitional government agreed on a plan to evacuate Syrians from Al-Hol camp to government-held areas. Previously, repatriations had only been allowed to Kurdish-controlled zones. In Aleppo, the YPG, which is a component of the SDF, handed over the Sheikh Maqsoud and Achrafieh neighborhoods to the Syrian government. These predominantly Kurdish districts had been under YPG/SDF control since 2015 and remained semi-autonomous even after the Assad government recaptured most of Aleppo in 2016. Landis said similar negotiations are underway with Druze militias in southern Syria. 'Arriving at an agreed-upon solution will take time, and both sides are still debating how integral regional militias will be allowed to remain and how much local authority their commanders will have,' he said. In the past few months, Syria's Druze community has faced renewed violence and sectarian tensions, particularly in areas near Damascus like Jaramana and Sahnaya. In late April, a fake audio recording triggered sectarian violence in the Damascus suburbs of Jaramana and Sahnaya. Clashes between Druze militias, Sunni groups, and government forces left dozens of civilians dead. Human rights monitors reported extrajudicial killings by government-affiliated units. Although local ceasefires and Druze police deployments have eased tensions in some areas, mistrust runs deep. The Druze community continues to demand greater autonomy and security guarantees, resisting government disarmament efforts amid fears of future attacks. Concerns have been amplified by sectarian killings targeting the Alawite community, particularly along Syria's coast. Between March and April, armed groups — including some tied to the transitional government — reportedly executed Alawite civilians and torched their homes. On May 28, the EU sanctioned two individuals and three groups accused of carrying out the attacks. While the EU has announced plans to lift sanctions, foreign policy chief Kaja Kallas said the move was 'conditional' and that sanctions could be resumed if Syria's new government does not keep the peace. That fragile peace, analysts say, depends largely on how the transitional leadership navigates Syria's complex social fabric. 'For the new transitional leadership, managing relationships with Syria's minorities and broader society, each with its own aspirations, will be essential to stabilizing the country and permanently lifting the threat of renewed US sanctions,' said Otrakji. One of the most delicate challenges, he said, lies in the relationship between Al-Sharaa's administration and the Alawite community, which held significant power under the Assad regime. 'Establishing a local police or security force may be the only realistic solution to address mutual distrust and security concerns,' Otrakji said. 'A handful of influential Alawite figures are now competing to convince their community, and other relevant actors, that they should play the leading role in protecting and representing Alawite interests.' As Al-Sharaa struggles to assert control, fears of renewed civil war persist. US Secretary of State Rubio warned in late May that Syria could be only weeks away from 'potential collapse and a full-scale civil war of epic proportions.' Progressing to the next phase of US relief will require Syria to normalize relations with Israel by joining the Abraham Accords. The Abraham Accords are a series of diplomatic agreements brokered by the US in 2020, normalizing relations between Israel and several Arab states, including the UAE, Bahrain, Sudan, and Morocco. The accords marked a significant shift in Middle East diplomacy, promoting cooperation despite the ongoing Israeli-Palestinian conflict. Their potential has been undermined, however, by public outcry over the war in Gaza. Al-Sharaa has publicly signaled openness to diplomacy. 'Al-Sharaa has reiterated his interest in arriving at a peaceful settlement with Israel,' said Landis. 'He has made a trust-building gesture by handing over the papers of the celebrated Israeli spy Eli Cohen.' The Syrian leadership reportedly approved last month's return of 2,500 documents related to Cohen and his personal belongings. The Israeli spy was executed in Damascus in 1965. The archive, held by Syrian intelligence for six decades, included his letters, will, passports, and surveillance photos. 'Word is that Al-Sharaa has also been trying to reach out to Israel through the US to establish talks,' Landis said. Despite Syrian statements seeking peace, Israel remains cautious. Since Assad's fall, it has conducted hundreds of airstrikes across Syria and seized control of a UN-monitored buffer zone inside Syrian territory. Taking advantage of the power vacuum left by Assad's ouster, Israeli troops advanced up to 15 km into Syrian territory, establishing a 'zone of control' and a deeper 'sphere of influence' reaching as far as 60 km east, particularly in the southern provinces of Quneitra and Daraa. In recent months, the Israeli military has established at least nine new outposts and bases, including on Mount Hermon and within the former UN Disengagement Observer Force buffer zone. Israeli troops have also occupied several Syrian villages, including Al-Kiswa, Al-Bakar, Sidon Al-Golan, Sidon Al-Hanout and Al-Adnaniyah. Still, some see potential for reconciliation. 'The majority of Syrians want to have peace at home, and they want to have peace in the neighborhood,' Ibrahim Al-Assil, a senior fellow at the Middle East Institute, told CNN. 'The issue with Israel is indeed complicated, but it's not impossible to resolve the issue of the Golan Heights, the issue of the borders, the concerns of both sides are deep and real and serious,' he said. 'That means there is a potential for these talks, and there is a potential for having better relationships on both sides, the Israeli side and the Syrian side, and that require both sides to start a long journey of negotiations between both of them, and to believe that a better relationship is possible between both of them.' Ghassan Ibrahim, founder of the Global Arab Network, believes the real test for Al-Sharaa's government will be reconstruction. 'The key now is how the government handles the opportunities it's being given — politically, regionally, internationally, and with sanctions relief,' he told Arab News. 'Will reconstruction be piecemeal, with companies simply seizing contracts, or will it be comprehensive?' The London-based Syria analyst added: 'Ideally, reconstruction should create opportunities for businesses, rebuild infrastructure, improve quality of life, and promote stability — ultimately encouraging refugees to return. 'These are the things that will be judged moving forward.'
Arab News
an hour ago
- Arab News
‘Retailtainment' shaping growth of shopping malls in Saudi Arabia
RIYADH: Shopping malls in Saudi Arabia have strong growth prospects, as consumers increasingly prefer the convenience of retail and entertainment offerings combined under one roof, experts have told Arab News. Strengthening the Kingdom's retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program, as Saudi Arabia aims to become a global hub of business and tourism by the end of the decade. In June, a report by global real estate consultancy Knight Frank revealed that Riyadh is leading the Kingdom's retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030. According to the analysis, average mall rent in the Saudi capital rose to SR2,848 ($765) per sq. meter by the end of March, with occupancy rates up 5 percent to reach 92 percent in the first quarter of 2025. Speaking to Arab News, Olivier de Cointet, senior adviser at management consulting firm Arthur D. Little, said that shopping malls are set to thrive in the Kingdom as they evolve into social venues rather than mere shopping destinations. 'With retailtainment, which is the fusion of retail and entertainment, becoming an essential part of the customer experience, malls play a significant role in supporting the Kingdom's vision to become a business and tourist destination hub,' said Cointet. He added: 'These destinations enhance Saudi Arabia's appeal as a business and tourism hotspot and keep more consumer spending within the Kingdom.' Anthony Spary, head of retail, leasing, and offices at CBRE for the Middle East and North Africa region, echoed similar views, saying that shopping malls in the Kingdom could serve as social hubs for both locals and visitors, promoting cultural exchange and providing a platform for both international and homegrown brands. Today's consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience. Sundeep Khanna, partner at ADL 'Malls often feature concepts such as family entertainment centers, cinemas, cultural events as well as unique anchor attractions, all of which will draw tourists and encourage repeat footfall with residents,' said Spary. Joe Abi Akl, partner and head of Oliver Wyman's Retail and Consumer practice for India, the Middle East and Africa, said that shopping malls in Saudi Arabia have allocated nearly half of their gross leased area to non-retail activities, which could help them serve as social and entertainment destinations. 'Shopping malls, with a pipeline exceeding 6 million sq. meters of GLA, play a vital role in this vision by offering integrated, experience-led environments. With more than 40 percent of mall space planned for non-retail activities, they're not just commercial centers, but social and cultural anchors that enrich the Kingdom's appeal as a leisure and lifestyle destination,' said Abi Akl. These comments align with Saudi Arabia's efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, representing a compound annual growth rate of 8 percent from 2024. Shaping retail spending CBRE's Spary said the rising number of shopping malls in the Kingdom is expected to boost retail spending as they provide consumers with convenience and a wide variety of product choices. 'Saudi Arabia offers a unique retail landscape in the region, providing a blend of strip malls, line retail, as well as community and regional shopping districts. This new wave of shopping malls will only add to this offering and create a more varied mix for the consumer,' added Spary. These views regarding consumer spending align with the findings of a recent report published by global consulting firm AlixPartners, which said the Kingdom's consumer market is evolving rapidly, characterized by adaptability, shifting spending patterns, and resilience in the face of global economic challenges. AlixPartners noted that the groceries and clothing categories are expected to remain key spending sectors in 2025, with consumers prioritizing value-driven deals and savings. Craig Watson, head of retail at JLL in the Kingdom, stated that the development of several high-quality retail centers will transform the consumer experience across Saudi Arabia, offering a wide array of choices and ultimately boosting overall spending. 'When regions go through extensive and rapid growth, the consumer is always the winner, with increased supply providing new and exciting concepts to experience. The retail mix, success, and execution of these places will ultimately determine the share of wallet and who benefits most,' said Watson. In February, during the Retail Leaders Circle, Abdellah Iftahy, senior partner at McKinsey and Co., said that the Kingdom's retail sector is undergoing a significant transformation, driven by a digitally savvy young population and increasing consumer confidence. He added that by 2035, 75 percent of retail spending is expected to come from the Saudi youth. E-commerce vs. shopping malls Although the growth of e-commerce in Saudi Arabia may pose challenges for traditional retail formats, it can also complement the development of malls in the Kingdom, according to experts. Watson notes that the Kingdom has emerged as a major e-commerce hub in the Middle East and North Africa, driven by its young, tech-savvy population and expanding internet coverage. He believes the growth of the e-commerce sector will not negatively impact the operations of shopping malls nationwide. • Strengthening the Kingdom's retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program. • Riyadh is leading the Kingdom's retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030. 'As is the case with every region, the overwhelming majority of retail sales is derived from brick-and-mortar transactions. Malls will need to adapt by integrating technology, enhancing the customer experience and offering unique in-person experiences that cannot be replicated online,' said Watson. According to Spary, many consumers still prefer the tactile experience of shopping in person, and malls can integrate e-commerce by offering click-and-collect services. 'Malls can serve as experiential spaces where brands showcase their products, attracting customers who enjoy the physical shopping experience. Taking into account both cultural shopping preferences as well as the impact of the climate on consumer behavior, increasing e-commerce penetration will add to the overall omnichannel approach that retailers are adopting across the region,' said Spary. Sundeep Khanna, partner at ADL, said that the growth of the e-commerce sector is not cannibalising shopping malls, but is actually complementing them. 'Today's consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience,' said Khanna. Attracting international brands Spary told Arab News that the transformation and upgrade of retail offerings in the market of Saudi Arabia will pave the way for new international brands to enter and grow within the Kingdom, contributing to the country's wider economic goals. According to the CBRE official, the entry of new brands will not only enhance consumer choices but also stimulate a competitive environment that encourages brand expansion and attracts investment. 'CBRE is currently seeing record levels of demand from international brands looking to expand into the region. This demand is likely to continue given the robust and ever-maturing nature of this market,' said Spary. Cointet noted that Saudi Arabia has become an attractive destination for global fashion, luxury, and food and beverage retailers, drawn by the population's strong spending power and the rise of premium mall spaces such as Riyadh Park and Mall of Arabia. 'Mall expansion goes hand-in-hand with pro-investment reforms — for example, Saudi Arabia now allows 100 percent foreign ownership in the retail sector, encouraging international companies and developers to invest directly,' added Cointet. The Arthur D. Little official further stated that the expansion of shopping malls in the Kingdom will also provide local brands with unprecedented opportunities to establish a national and international footprint. 'This is critical for developing the Saudi economy and I anticipate we will see more Saudi-owned brands enter the world stage in the coming years,' added Cointet. Potential challenges The experts also highlighted some of the challenges in Saudi Arabia's retail landscape, particularly surrounding shopping malls, including oversupply. 'Whilst there's certainly a risk of oversupply with many large projects due to be delivered over the course of the next two to three years, the need for continuous innovation and adaptation to changing consumer trends will be crucial for the sustainability of shopping malls in the Kingdom,' said Spary. The CBRE official further said that new attractions, entertainment options, and cultural elements will play a pivotal role in reshaping the retail landscape in the market. Spary added that the integration of these features will create a more engaging and immersive experience for consumers, ultimately redefining how shopping is perceived and enjoyed in the Kingdom. Cointet expressed a slightly different view, stating that the demand for malls in Saudi Arabia is expected to rise in the coming years due to population growth. He explained that this challenge could be addressed by developing large-format mega malls that serve as destinations in themselves, alongside smaller community malls designed to offer convenience at the local level. In April, a separate analysis by S&P Global said that oversupply, changing retail preferences, and pressure on rental yields amid elevated capital expenditure by landlords could exert pressure on the Kingdom's retail sector. According to the US-based agency, the volume of retail projects in the pipeline raises the risk of potential oversupply, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces. Discussing the risk of oversupply, Cointet said: 'Saudi Arabia's aggressive development pipeline of new retail space underway — raises the risk of too much supply coming to market, which could pressure occupancies and rents in some areas, or even threaten the launch of some of the programs.' He added: 'Landlords and developers may need to differentiate their properties with unique experiences, dining, and entertainment offerings — and even offer lease incentives — to avoid saturation and keep shoppers engaged in an evolving retail landscape.'
Arab News
an hour ago
- Arab News
Saudi Arabia leads bold transformation to tackle water scarcity
RIYADH: Saudi Arabia is confronting one of the world's most urgent environmental challenges: water scarcity. Faced with limited natural freshwater resources and a rapidly expanding population, the Kingdom is taking decisive steps to secure water availability for future generations. Central to this ambitious transformation is a strategic focus on the 'Three As' of water management: availability, accessibility, and affordability. In recent years, Saudi Arabia has become a global leader in water desalination, investing heavily in cutting-edge technologies and large-scale infrastructure projects. These efforts are not only reshaping the nation's water landscape but also setting an example for other arid regions grappling with similar issues. Speaking to Arab News, Tariq Nada, executive vice president of the Center of Excellence at ACWA Power, highlighted the Kingdom's dominant role in the water sector. 'The Kingdom's current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030,' Nada explained. He further noted: 'As of 2024, the Kingdom had committed $6.28 billion in ongoing projects focused on water distribution, water treatment plants, wastewater collection projects and wastewater treatment plants.' Nick Strange, principal at Arthur D. Little, pointed out Saudi Arabia's massive achievements over the past five decades. 'The country plans to more than double its desalination capacity to around 20 million m³/d by 2030. New mega plants are under development in strategic locations including the Eastern Province, Makkah, Jazan and Madinah (regions). In parallel, the transmission network will also be expanded in scale and reach to accommodate the growing demand and new production hubs,' he told Arab News. Strange added: 'However, the Kingdom is not relying on desalination alone. Recognizing the importance of water sustainability, Saudi Arabia is also accelerating efforts in wastewater treatment and reuse. Current treated water capacity is 6-7 million m³/d, with approximately 30 percent being utilized.' Saudi Arabia's approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants. Meanwhile, the reuse of treated wastewater is gaining momentum as part of a wider push for sustainable resource management. Public-private partnerships have been instrumental in driving this transformation, accelerating investments and expediting the development of critical infrastructure. Nicolas Boukhalil, PwC Middle East's energy, resources and sustainability deals leader, emphasized the benefits of opening the sector to international competition. • Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030. • Saudi Arabia's approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants. 'These partnerships are introducing new technology, improving efficiency, and making water more affordable for homes, businesses, and farmers alike. The result: a more sustainable financial model that eases pressure on public budgets and supports long-term economic growth,' he said. He also stressed the importance of distribution networks, stating, 'Producing water is only half the battle, getting it where it's needed is just as critical. That's why major investments are also going into water transmission networks, storage reservoirs, and smart management systems.' Hani Tohme, partner and Middle East and Africa sustainability lead at Kearney, shed light on the current wastewater situation. 'Saudi Arabia treats over 6.5 million cubic meters of municipal wastewater each day, yet only around 25 percent of that is reused, with wastewater network coverage reaching approximately 65 percent,' he said. The National Water Strategy aims to boost treatment and reuse significantly by 2030 — targeting treatment of up to 10 million cubic meters daily and reuse rates of 70 percent. Tohme explained: 'This enables groundwater preservation, supports industrial and agricultural reuse, and reduces dependency on energy-intensive desalination — which still provides 60 percent of urban water supply today.' Enhancing water security Saudi Arabia's expansion of desalination and water purification is a cornerstone of Vision 2030, reinforcing national water security and the Kingdom's broader transformation goals. Nada from ACWA Power sees investment in advanced desalination as a critical response to water scarcity that also promotes economic growth through job creation and industry development. 'Since its inception, ACWA Power has consistently been an early adopter of new technologies, in full cooperation and collaboration with the full ecosystem, led by KSA Water offtaker, SWPC, achieving 87 percent reduction in specific power consumption over the last decade. This commitment to innovation is reflected in the company's ongoing efforts to integrate sustainable and cost-effective water solutions,' Nada said. From Arthur D. Little's perspective, these initiatives boost economic diversification and elevate Saudi firms globally. The Kingdom's current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030. Tariq Nada, executive vice president of the Center of Excellence at ACWA Power 'For businesses, this presents significant opportunities across engineering, clean technology, and supply chain localization — while for the nation, it reinforces resilience, global competitiveness, and leadership in addressing one of the 21st century's most pressing challenges: the sustainable management of water,' Strange explained. PwC also notes the alignment between the Kingdom's water strategy and Vision 2030's goals of economic diversification and sustainability. 'As global demand for desalination and sustainable water solutions rises, Saudi Arabia has the tools, talent, and ambition to become a world leader in water technology, creating new revenue streams while solving a shared global issue,' Boukhalil said. Kearney's Tohme emphasized the wastewater sector's growing role in attracting private investment. 'For businesses, this creates significant opportunities in EPC contracting, localization of technologies including membrane technologies, operations and maintenance, and treated water offtake agreements, particularly in industrial zones and giga developments,' he said. Evolution of water purification In 2025, Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030. Highlighting upcoming developments, Nada said: 'In 2025, we anticipate an increased integration of renewable energy, with water desalination plants increasingly powered by solar energy and battery energy storage systems, further reducing their environmental impact and operational costs.' He added: 'We also expect to see a rise in the deployment of advanced membrane technologies, where next-generation membrane technologies will improve the efficiency and effectiveness of RO plants, reducing energy consumption and increasing water recovery rates.' Nada also pointed to the role of digital technologies: 'Digital technologies, such as AI, including machine learning, (will) enable real-time monitoring, optimization, and predictive maintenance of water purification plants.' Kearney's Tohme foresees three major shifts by 2025. He expects accelerated deployment of decentralized purification plants in underserved and remote areas, adoption of digital twins and predictive maintenance technologies to reduce operational costs and non-revenue water, and the strategic integration of treated water into agriculture and district cooling systems. He concluded: 'These trends are not just technical — they enhance Saudi Arabia's economic resilience by separating water supply from climate stress.'
