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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.

 

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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s economy continued its upward trajectory in 2024, solidifying its status as one of the world’s most stable and fastest-growing markets. This momentum is being driven by the Kingdom’s unwavering commitment to economic diversification — a central pillar of Vision 2030 — which has significantly boosted non-oil sectors, expanded private sector participation, and increased the economy’s ability to generate jobs and attract investment.

Non-oil activities now contribute a record 51% to real GDP, marking a major milestone in the country’s transformation journey.

According to the Vision 2030 annual report, Saudi Arabia’s real non-oil GDP grew by 3.9% in 2024 compared to the previous year, fueled by ongoing investments across diverse sectors. Non-oil activities alone expanded by 4.3% year-on-year, reflecting the success of structural reforms and strategic national programs.

At the heart of Vision 2030 is the ambition to build a thriving economy. One of the key benchmarks is improving Saudi Arabia’s position in global GDP rankings. In 2016, the Kingdom ranked 20th worldwide. By 2030, it aims to break into the top 15, with a targeted GDP of SAR 6.5 trillion ($1.7 trillion).

In early 2024, Saudi Arabia adopted a new moving-chain methodology to measure GDP more accurately. Under this updated system, real GDP has grown consistently since 2016 at a compound annual rate of 1.75%, excluding the pandemic-induced downturn in 2020. Non-oil GDP, meanwhile, has shown even stronger performance, expanding at a 3.01% annual pace over the same period.

While the 2024 non-oil GDP target was narrowly missed, the outcome reached 98% of the goal — a strong showing amid global uncertainties. Leading contributors included wholesale and retail trade, hospitality, transportation, logistics, and information technology.

Non-oil exports also played a pivotal role in economic growth, achieving over 75% of their annual targets. Gains came primarily from increased exports of non-oil goods and a sharp rise in re-exports, underlining Saudi Arabia’s growing role in global trade flows.

The private sector’s role in the economy has expanded significantly, with its contribution to GDP reaching 47% — surpassing the 2024 target. Since 2016, this contribution has grown at a compound annual rate of 1.94%.

This progress reflects ongoing efforts to reduce reliance on oil, empower private enterprise, and enhance the Kingdom’s global competitiveness. Key initiatives include national strategies aimed at unlocking sectoral potential, the Public Investment Fund’s push to stimulate private capital, and the successful drive to attract global companies to relocate their regional headquarters to Saudi Arabia.

The government continues to foster a dynamic business environment, supporting small and medium enterprises (SMEs) through regulatory reforms and major development projects. These efforts span several sectors, including manufacturing, transport, logistics, and foreign investment.

Global Confidence, Positive Outlook

International confidence in the Saudi economy remains strong. In 2024, the world’s top three credit rating agencies affirmed the Kingdom’s sovereign creditworthiness. Moody’s assigned a rating of “Aa3” with a stable outlook; Fitch rated it “A+” with a stable outlook; and S&P awarded an “A/A-1” rating, also with a stable outlook.

Global institutions are also optimistic about the Kingdom’s growth prospects. The Organisation for Economic Co-operation and Development (OECD) forecasts Saudi economic growth at 3.8% in 2025 and 3.6% in 2026 — well above the global average.