Saudi Arabia Water and Wastewater Treatment Industry Size & Future Forecast (2025–2033)

Saudi Arabia Water and Wastewater Treatment Market Outlook

The Saudi Arabia Water and Wastewater Treatment Market is projected to expand robustly, reaching US$ 7.43 billion by 2033, up from US$ 4.03 billion in 2024, growing at a CAGR of 7.05% during 2025–2033, according to Renub Research estimates. This growth reflects the Kingdom’s urgent need to address water scarcity, manage rapid urbanization, and meet the rising requirements of industrial development while aligning with long-term sustainability goals.

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Saudi Arabia’s desert climate, limited renewable freshwater resources, and growing population have transformed water management from a utility function into a strategic national priority. As desalination, wastewater recycling, and advanced treatment technologies become central to water security planning, the water and wastewater treatment industry is emerging as a cornerstone of the country’s infrastructure and environmental agenda.

Saudi Arabia Water and Wastewater Treatment Market Overview

Water and wastewater form two interconnected components of the water cycle. Water is required for drinking, agriculture, industry, power generation, and sanitation. Wastewater, generated from households, municipalities, industries, and agriculture, contains physical, chemical, and biological contaminants that must be treated before reuse or safe discharge into the environment.

In Saudi Arabia, desalination supplies the majority of potable water, making the Kingdom one of the world’s largest producers of desalinated water. However, desalination alone is not sufficient to meet long-term demand sustainably. Wastewater treatment and reuse have therefore become essential pillars of national water strategy. Treated wastewater is increasingly reused for landscaping, agriculture, industrial cooling, and non-potable urban applications, helping to conserve scarce groundwater resources.

Government-led initiatives aim to achieve nearly 100% wastewater treatment and high reuse rates, directly supporting the objectives of Saudi Vision 2030, which emphasizes environmental sustainability, efficient resource utilization, and smart infrastructure development.

Growth Drivers in the Saudi Arabia Water and Wastewater Treatment Market

Rising Water Scarcity and the Need for Sustainable Solutions

Saudi Arabia faces chronic water stress due to minimal rainfall, high evaporation rates, and over-extraction of groundwater. As population growth, industrialization, and urban expansion intensify demand, sustainable water management has become critical. Advanced water and wastewater treatment technologies—such as membrane filtration, biological treatment, and reuse systems—offer long-term solutions by reducing dependence on non-renewable water sources.

A notable development was the launch of the International Water Research Center at King Abdullah University of Science and Technology (KAUST) in December 2024, aimed at advancing innovation in global water sustainability and strengthening Saudi Arabia’s technical capabilities in this sector.

Government Initiatives and Vision 2030 Commitments

The Saudi government plays a decisive role in driving market growth through policy support, infrastructure investment, and public-private partnerships (PPPs). Major programs led by the Ministry of Environment, Water and Agriculture and the National Water Company focus on upgrading wastewater treatment plants, expanding sewer networks, and improving operational efficiency.

Under the PPP framework, Saudi Arabia announced plans to invite bids for multiple Independent Sewage Treatment Plant (ISTP) projects and small sewage treatment and collection network projects. These initiatives are designed to treat wastewater for municipal and industrial reuse, significantly boosting demand for treatment technologies and services.

Industrial Expansion and Rapid Urbanization

Saudi Arabia’s expanding industrial base—particularly in oil & gas, petrochemicals, power generation, and manufacturing—generates large volumes of industrial wastewater that must comply with stringent environmental regulations. Simultaneously, rapid urbanization is increasing municipal wastewater generation. With projections indicating that nearly 88% of the population will reside in urban centers, the need for modern, scalable, and efficient water infrastructure is intensifying, directly supporting market growth.

Challenges in the Saudi Arabia Water and Wastewater Treatment Market

High Operating Costs and Energy Intensity

Water and wastewater treatment processes, especially desalination and advanced membrane systems, are capital- and energy-intensive. Operating costs, maintenance expenses, and energy consumption can strain budgets, particularly for smaller municipalities or remote facilities. While energy-efficient technologies are improving, cost management remains a key challenge for widespread adoption.

Skills Gap and Dependence on Foreign Expertise

Despite significant infrastructure development, the sector faces a shortage of highly trained local professionals capable of operating and maintaining advanced treatment systems. Dependence on foreign expertise increases project costs and can delay implementation. Strengthening local talent through training and knowledge transfer is essential for the industry’s long-term sustainability.

Key Market Segments

Saudi Arabia Coagulants & Flocculants Water Treatment Market

Coagulants and flocculants are vital chemicals used to remove suspended solids and impurities during water and wastewater treatment. In Saudi Arabia, demand for these chemicals is rising rapidly in both municipal and industrial applications. Stricter environmental regulations and the need for cost-effective clarification solutions are driving growth in this segment.

Saudi Arabia Antifoam Chemicals Water and Wastewater Treatment Market

Antifoam agents play a critical role in controlling foam formation during treatment processes, particularly in industrial wastewater applications. With strong activity in oil & gas, petrochemicals, and food processing, Saudi Arabia is witnessing increasing demand for antifoam chemicals to maintain operational efficiency and prevent system disruptions.

Saudi Arabia Disinfection Water and Wastewater Treatment Market

Disinfection is a core stage of water treatment aimed at eliminating pathogens and safeguarding public health. Technologies such as chlorination, ultraviolet (UV) treatment, and ozonation are gaining widespread adoption across the Kingdom. Growing health awareness, urban expansion, and regulatory enforcement are accelerating investments in advanced disinfection systems.

Saudi Arabia Membrane Separation Water and Wastewater Treatment Market

Membrane technologies—including reverse osmosis, ultrafiltration, and nanofiltration—are central to Saudi Arabia’s desalination and wastewater reuse strategies. These systems offer high efficiency and superior contaminant removal. Continued reliance on desalinated water and industrial reuse is expected to drive strong growth in the membrane separation segment.

Application-Based Analysis

Municipal Water and Wastewater Treatment Market

Municipal treatment represents a priority area, supported by heavy public investment in urban infrastructure. Population growth, rising water consumption, and the need for safe drinking water are pushing cities to modernize treatment facilities. Smart city initiatives and international collaborations are further enhancing municipal treatment capabilities.

Industrial Water and Wastewater Treatment Market

Industrial water treatment is expanding rapidly, driven by regulatory pressure and sustainability commitments from major industries. Advanced solutions such as zero-liquid discharge systems, chemical treatment, and biological processes are increasingly adopted to reduce environmental impact and improve water reuse rates.

Regional Insights

Dhahran Water and Wastewater Treatment Market

Dhahran, a major hub for oil and gas activities, has significant demand for advanced wastewater treatment solutions. Industrial effluent management, groundwater protection, and sustainability initiatives—often supported by collaborations involving Saudi Aramco—are accelerating technology adoption in the region.

Dammam Water and Wastewater Treatment Market

As a key industrial and urban center in the Eastern Province, Dammam faces increasing pressure on its water infrastructure. Expansion of municipal treatment plants and customized industrial solutions for manufacturing zones are driving steady market growth.

Riyadh Water and Wastewater Treatment Market

Riyadh, the Kingdom’s capital and largest city, represents the most significant market for water and wastewater treatment investments. Rapid population growth, smart city development, and government-backed infrastructure projects are fueling demand for advanced treatment technologies, real-time monitoring, and large-scale reuse systems.

Recent Trends and Industry Developments

In February 2024, VA Tech Wabag secured a US$ 33.5 million contract with SEPCO III for engineering and procurement work on an industrial wastewater treatment plant at Ras Tanura Refinery.

During the same month, Nama Chemicals Company announced a US$ 19.0 million wastewater treatment project for its Jubail Chemicals subsidiary.

The National Water Company launched water and sanitation projects worth approximately US$ 959 million across Riyadh, Madinah, and the Eastern Province, enhancing service coverage and infrastructure quality.

Earlier milestones include the completion of the Shuqaiq 3 desalination plant and a long-term operational contract awarded to Veolia Group for water and wastewater services in Riyadh, benefiting nearly nine million residents.

Market Segmentation Overview

By Chemicals:

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

By Equipment:

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

By Application:

Municipal, Industrial

By Region:

Dhahran, Riyadh, Khobar, Jeddah, Dammam, Others

Key Players Analysis

Major companies operating in the Saudi Arabia water and wastewater treatment market include Ecolab Inc., 3M Company, Pentair plc, DuPont, Xylem Inc., Aquatech International, Calgon Carbon Corporation, and Parkson Corporation. These firms compete through technology innovation, strategic partnerships, and localized service offerings.

Final Thoughts

The Saudi Arabia Water and Wastewater Treatment Industry is entering a transformative growth phase, underpinned by strong government support, rising environmental awareness, and urgent water security needs. As desalination, wastewater reuse, and advanced treatment technologies become indispensable, the market offers substantial opportunities for technology providers, investors, and infrastructure developers. With continued alignment to Vision 2030 and increasing public-private collaboration, the sector is poised to play a decisive role in shaping a sustainable water future for the Kingdom.