عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Starts First Privatization Program in ‘Rabigh 3’

The Saudi Ministry of Environment, Water and Agriculture signs a deal to implement the first privatization program in the Kingdom. (SPA)
The Saudi Ministry of Environment, Water and Agriculture signs a deal to implement the first privatization program in the Kingdom. (SPA)
TT
TT

Saudi Arabia Starts First Privatization Program in ‘Rabigh 3’

The Saudi Ministry of Environment, Water and Agriculture signs a deal to implement the first privatization program in the Kingdom. (SPA)
The Saudi Ministry of Environment, Water and Agriculture signs a deal to implement the first privatization program in the Kingdom. (SPA)

The Saudi Ministry of Environment, Water and Agriculture signed on Monday an agreement to implement the first privatization program in Saudi Arabia.

The initiative lies in signing of Rabigh 3 Independent Water Project (IWP) from the desalination plant at Rabigh with a design capacity of 600,000 cubic meters of desalinated water per day.

The new project will benefit the Makkah area to meet the growing demand for desalinated water there.

It was offered to investors under the build–own–operate–transfer (BOOT) system and was won by the ACWA Power consortium.

Saudi Minister of Environment, Water and Agriculture Eng. Abdulrahman al-Fadhli, who also chairs of the Board of Directors of the Water and Electricity Company and the Supervisory Committee for the Privatization of Environment, Water and Agriculture Sector, signed the project’s agreement in the presence of Minister of Economy and Planning Mohammed bin Mazyed al-Tuwaijri in the Ministry’s headquarters on Monday.

Fadhli explained that the project is located on the Red Sea coast (150 km north of Jeddah) with a planned capacity of 600,000 cubic meters per day of potable water, using the desalination technology of seawater reverse osmosis, and it is expected to begin operating in 2022.

Signing the agreement comes within the projects of water production and sewage treatment of which the government intends to offer to investors in accordance with the Kingdom’s Vision 2030, Fadhli explained.

He added that it also comes in line with the cabinet’s approvals to offer a number of water production and sewage treatment projects to investors with four projects for water production and three wastewater treatment projects.

These projects aim at raising the level of services, improving the efficiency of spending, benefiting from private sector expertise and financing and increasing its participation, the minister said.

He highlighted the ministry's success in reducing energy consumption levels in independent water production projects by 20 percent.

"The ministry has increased local content to 40 percent at the beginning of the project, gradually reaching 70 percent after the first five years of operation," Fadhli explained.

Most Viewed

 
 
Business

FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
TT
TT

FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.