How Saudi Arabia Became the World’s Largest Desalinated Water Producer

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How Saudi Arabia Became the World’s Largest Desalinated Water Producer

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Over a century ago, Saudi Arabia, with its dry desert climate, started desalinating water using the “Kandasa” machine on the shores of Jeddah. Today, it is the world's largest producer of desalinated water and holds nine Guinness World Records.
The “Kandasa,” named after the Latin word “Condenser,” used coal to condense and distill seawater into fresh water.
In 1926, due to a lack of fresh water for pilgrims arriving in Jeddah, King Abdulaziz Al Saud ordered two large desalination machines to meet water needs.
A major turning point came in 1974 with the creation of the Saline Water Conversion Corporation (now the Saudi Water Authority).
Today, Saudi Arabia operates 33 desalination plants, including eight on the Arabian Gulf and 25 on the Red Sea coast. These plants produce 5.6 million cubic meters of fresh water daily, supplying 70% of the country's desalinated water, making Saudi Arabia the world's largest producer.
In February, the Saline Water Conversion Corporation set nine Guinness World Records by producing over 11.5 million cubic meters of desalinated water daily.
Saudi Arabia is one of the world’s largest investors in water desalination, with major investments in desalination plants.
Mohammed Al Sheikh, from the Saudi Water Authority, spoke at COP16 in Riyadh, noting that Riyadh gets desalinated water through a 500-kilometer pipeline, part of an advanced water system built over four decades.
The government has allocated over $80 billion for water projects in the coming years.
Saudi Arabia is sharing its desalination expertise. In July 2024, it signed an agreement with the World Bank to help low-income countries adopt its successful water strategies, including better water management and cost-cutting techniques. The goal is to support countries in improving water efficiency and sustainability, in line with the UN’s goal for clean water and sanitation.
Al Sheikh also highlighted the kingdom’s shift to energy-efficient desalination technologies.
Saudi Arabia has moved from thermal methods to reverse osmosis, cutting energy use by up to 80%. The country aims to produce 83% of its desalinated water using reverse osmosis, a key step toward sustainability. This technology is widely used for drinking water, wastewater treatment, and industrial applications.

 



Saudi Arabia’s Kingdom Holding Buys $400 Million Stake in xAI

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
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Saudi Arabia’s Kingdom Holding Buys $400 Million Stake in xAI

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration

Kingdom Holding Company (KHC) said on Wednesday it has acquired a key stake in xAI Corporation, an artificial intelligence company founded by US billionaire Elon Musk for 1.5 billion Saudi Riyals ($400 million), becoming the second largest investor in X and xAI.

The acquisition of the new stake is part of xAI’s Series C funding round, said KHC in its filing to Saudi bourse Tadawul.

This transaction follows KHC's previous investment at the same value in xAI during its Series B funding round.

It further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015, KHC stated.

A post on X said Prince Alwaleed bin Talal became the second largest shareholders in Musk’s two companies, X & xAI.

In November 2022, the Saudi prince moved almost 35 million Twitter shares through the Kingdom Holding Company, worth about $1.9 billion at the $54.20 per share sale price. That made him the “second-largest investor” in the new parent company.
Funding Rounds

The funding rounds consist of several fundraising events in which startups or existing companies raise funds from investors to continue building their infrastructure and accelerate research and development.

The rounds start with a “seed round” of funding where a startup typically raises money from the owners to cover initial operating expenses and then expand to Series A, B, and C funding rounds as the company develops to raise additional capital.

In terms of risks, Series B funding is generally less risky than Series A funding, while Series C is less risky than Series B and is typically used by companies that are growing rapidly and need additional capital to fund their expansion.

Musk's xAI Series C funding round included the Qatar Investment Authority (QIA) and the Oman Investment Authority (OIA).

Participants included Morgan Stanley and BlackRock, which were described as two of the major investors in the fundraising round.

KHC, in which Public Investment Fund (PIF) owns a 17% stake, said xAI has a $45 billion valuation with the latest funding round, indicating a significant increase from its $25 billion valuation during the Series B funding round, the filing showed.

Following the announcement of the acquisition, the shares of KHC, listed on the Saudi Stock Exchange, rose by 0.44% to 9.16 riyals.

xAI’s strategy focuses on developing leading AI models and working closely with other technology companies associated with its founder, including Tesla, SpaceX, and X, whose application has over 500 million users.

KHC said this transaction further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015.

It forms part of KHC’s business model of securing early stakes in emerging technologies and its ambition to lead and innovate within the AI industry, it added.