Saudi Arabia Water and Wastewater Treatment Industry: Size, Outlook, and Forecast 2025–2033

Saudi Arabia is entering a pivotal phase in its management of water resources as the country intensifies its efforts toward sustainability, industrial growth, urban expansion, and environmental responsibility. With limited natural freshwater supplies and growing pressure from population surges and industrialization, the Kingdom has prioritized advanced water and wastewater treatment systems. According to current projections, the Saudi water and wastewater treatment market is expected to advance from US$ 4.03 billion in 2024 to US$ 7.43 billion by 2033, growing at a CAGR of roughly 7.05% between 2025 and 2033. This growth is deeply aligned with national strategies including Vision 2030, which emphasizes resource efficiency, private-sector partnerships, and modernized public infrastructure.

Market Overview

Water and wastewater treatment form essential parts of Saudi Arabia’s broader water cycle management. Water is used across residential, industrial, agricultural, and municipal activities. Conversely, wastewater—originating from domestic sewage, industrial operations, farming, and commercial institutions—contains physical, chemical, and biological contaminants that require treatment before release or reuse.

Given that Saudi Arabia receives minimal rainfall and lacks abundant freshwater rivers or lakes, the Kingdom depends heavily on desalinated water. Yet desalination alone cannot sustain long-term needs, especially as water demand increases. Wastewater treatment plays a crucial role in improving water security by allowing treated effluent to be reused for agriculture, cooling processes in factories, landscaping, and non-potable urban applications.

The government has set ambitious targets to improve treatment efficiency, expand wastewater networks, and enhance reuse percentages, aiming for near-total wastewater recovery nationwide. This approach preserves groundwater reserves, supports industrial development, and aligns with sustainability objectives outlined in Vision 2030.

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Key Growth Drivers

1. Rising Water Scarcity and the Need for Sustainable Alternatives

Saudi Arabia's arid climate and extremely limited freshwater resources have long made water scarcity a central environmental challenge. With growing domestic and industrial consumption, the pressure on existing water systems is increasing. As a result, large investments are being directed toward strengthening water treatment facilities, adopting recycling technologies, and expanding reclaimed water distribution.

Reusing treated wastewater has become a practical solution for addressing water shortages while reducing the burden on desalination plants. Industries and municipalities now increasingly rely on advanced filtration, biological treatment, and chemical processes to purify wastewater for reuse.

Research institutions are actively contributing to these solutions. For instance, in December 2024, the King Abdullah University of Science and Technology inaugurated the International Water Research Center to develop breakthrough technologies aimed at advancing sustainable water management both within the Kingdom and globally.

2. Government Initiatives and Vision 2030 Programs

Saudi Vision 2030 places environmental sustainability and efficient resource management among its top priorities. The government is modernizing water networks, implementing advanced treatment technologies, and promoting Public-Private Partnership (PPP) models to encourage private sector participation in major infrastructure projects.

Saudi Arabia’s National Water Company and the Ministry of Environment, Water and Agriculture have ongoing programs to expand treatment plant capacity, improve service coverage, and upgrade outdated systems. Notably, in April 2023, the Kingdom invited bids for six wastewater treatment projects under the PPP framework. These included five Independent Sewage Treatment Plant projects and one project involving small treatment plants and collection networks. The objective is to expand capacity while ensuring environmental compliance and enabling reuse for municipal and industrial purposes.

Such large-scale initiatives serve as major catalysts for the water and wastewater treatment industry, increasing opportunities for technology providers, engineering firms, and chemical suppliers.

3. Industrial Growth and Rapid Urbanization

Saudi Arabia’s industrial expansion—guided by economic diversification plans—has significantly increased the demand for reliable water treatment systems. Oil and gas, petrochemicals, manufacturing, mining, and construction industries require large amounts of clean water and generate substantial wastewater that must be treated before discharge or reuse.

Urbanization trends further contribute to rising water consumption. The Ministry of Municipal and Rural Affairs projects that approximately 88% of the country's population will live in urban areas by 2025, increasing the pressure on municipal water systems. To support this transition, modern wastewater networks, improved sewage systems, and high-capacity treatment plants are essential.

Both factors—industrial expansion and urban growth—ensure strong, ongoing demand for advanced treatment equipment, chemicals, and engineering services throughout the forecast period.

Key Challenges

1. High Operational Costs and Energy Consumption

Water and wastewater treatment in Saudi Arabia often requires energy-intensive processes, especially when advanced technologies like reverse osmosis are used. Because desalination and high-pressure filtration systems dominate the landscape, operating expenses remain high.

For smaller municipalities or private firms, maintaining and upgrading these systems can strain financial resources. Additionally, the high energy requirements challenge national sustainability goals and increase dependence on subsidized electricity. These cost barriers may slow the expansion of treatment capacity in lower-income or remote areas.

2. Limited Skilled Workforce and Technical Expertise

Although infrastructure investments are increasing, the workforce required to operate, maintain, and optimize advanced treatment systems remains insufficient. Many sophisticated processes—such as membrane filtration, UV disinfection, and high-efficiency desalination—require specialized technical knowledge.

Saudi Arabia often relies on foreign expertise for installation and operational support, which raises project costs and may delay implementation. Workforce development, training programs, and incentives for local technical education will be essential for future industry scaling.

Segment Insights

Coagulants & Flocculants Market

Coagulants and flocculants are widely used chemical agents essential for separating suspended solids in both water and wastewater streams. Their demand is rising in Saudi Arabia due to the large volumes of wastewater produced by industries and urban areas. Compliance with stricter environmental standards is motivating companies to adopt more efficient clarification methods.

Antifoam Chemicals Market

Antifoam agents are vital for managing foam in industrial and municipal treatment settings. Heavy industrial sectors such as oil and gas, chemical manufacturing, and food processing industries rely heavily on these chemicals to maintain operational continuity. As water reuse systems expand, the need for antifoam products continues to rise.

Disinfection Technologies Market

Disinfection is crucial to ensuring water safety and preventing public health concerns. Saudi Arabia is witnessing strong adoption of chlorination, UV disinfection, and ozone-based systems across municipal and industrial settings. Increased awareness of waterborne diseases and government regulations on drinking water quality reinforce this segment’s growth.

Membrane Separation Market

Membrane technologies—including ultrafiltration, nanofiltration, and reverse osmosis—are central to both desalination and wastewater recycling. Saudi Arabia, one of the world’s largest producers of desalinated water, relies heavily on RO systems. As the Kingdom moves toward greater water reuse, membrane systems will remain one of the fastest-growing segments due to their high efficiency and versatility.

Applications

Municipal Sector

Municipal applications constitute a major portion of the market as the government invests in urban wastewater networks, desalination plants, and large-scale recycling systems. Vision 2030 has accelerated modernization of city water supplies, supported by international partnerships and public investments aimed at boosting treatment capacity and distribution reliability.

Industrial Sector

Saudi Arabia’s oil refineries, petrochemical facilities, and heavy industries demand robust water treatment systems for process water preparation, wastewater discharge compliance, and water reuse initiatives. Technologies such as zero-liquid discharge systems, chemical treatment solutions, and biological treatment processes are becoming increasingly common across industrial operations.

Regional Insights

Dhahran

Dhahran’s heavy concentration of oil and gas operations makes it a vital hub for industrial water treatment systems. Projects focus on managing industrial effluents, protecting groundwater, and supporting sustainable operations of major companies like Aramco.

Dammam

As one of the primary commercial centers in the Eastern Province, Dammam requires large-scale municipal and industrial treatment solutions. Rapid infrastructure growth drives investment in new treatment facilities and technology upgrades.

Riyadh

The capital city has the highest demand for municipal water and is a central focus for large-scale infrastructure modernization. Smart city initiatives and major government contracts are accelerating the adoption of advanced treatment technologies.

Recent Industry Trends

• In February 2024, VA TECH WABAG secured a US$ 33.5 million contract for engineering and procurement of an advanced industrial wastewater treatment plant at Ras Tanura Refinery.
• Nama Chemicals Company announced a US$ 19 million wastewater treatment project for its Jubail subsidiary, beginning in March 2024.
• The National Water Company launched water and sanitation initiatives worth nearly US$ 959 million across major regions.
• The Shuqaiq 3 desalination plant, completed in January 2022, added 450,000 cubic meters of daily capacity using advanced reverse osmosis.
• Veolia was awarded a seven-year contract in December 2021 to operate Riyadh’s water and wastewater systems, covering 40,000 km of networks serving nearly 9 million residents.

Key Market Segmentation

Chemical Types

pH Conditioners, Coagulants & Flocculants, Disinfectants & Biocides, Scale & Corrosion Inhibitors, Antifoam Agents, Others

Equipment

Membrane Separation, Biological Treatment, Disinfection Systems, Sludge Treatment, Others

Applications

Municipal, Industrial

Top States

Dhahran, Riyadh, Khobar, Jeddah, Dammam, Others

Leading Market Players

Major companies shaping the Saudi water and wastewater treatment industry include:
Ecolab Inc., Veolia Group, 3M Company, Pentair plc, The Dow Chemical Company, Aquatech International, Calgon Carbon Corporation, Xylem Inc., DuPont, and Parkson Corporation.