RIYADH: Saudi Arabia is confronting one of the world’s most urgent environmental challenges: water scarcity. 

Faced with limited natural freshwater resources and a rapidly expanding population, the Kingdom is taking decisive steps to secure water availability for future generations.

Central to this ambitious transformation is a strategic focus on the “Three As” of water management: availability, accessibility, and affordability.

In recent years, Saudi Arabia has become a global leader in water desalination, investing heavily in cutting-edge technologies and large-scale infrastructure projects. 

These efforts are not only reshaping the nation’s water landscape but also setting an example for other arid regions grappling with similar issues.

Speaking to Arab News, Tariq Nada, executive vice president of the Center of Excellence at ACWA Power, highlighted the Kingdom’s dominant role in the water sector.

“The Kingdom’s current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030,” Nada explained.

He further noted: “As of 2024, the Kingdom had committed $6.28 billion in ongoing projects focused on water distribution, water treatment plants, wastewater collection projects and wastewater treatment plants.”

Nick Strange, principal at Arthur D. Little, pointed out Saudi Arabia’s massive achievements over the past five decades. 

“The country plans to more than double its desalination capacity to around 20 million m³/d by 2030. New mega plants are under development in strategic locations including the Eastern Province, Makkah, Jazan and Madinah (regions). In parallel, the transmission network will also be expanded in scale and reach to accommodate the growing demand and new production hubs,” he told Arab News.

Strange added: “However, the Kingdom is not relying on desalination alone. Recognizing the importance of water sustainability, Saudi Arabia is also accelerating efforts in wastewater treatment and reuse. Current treated water capacity is 6-7 million m³/d, with approximately 30 percent being utilized.”

Saudi Arabia’s approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants.

Meanwhile, the reuse of treated wastewater is gaining momentum as part of a wider push for sustainable resource management.

Public-private partnerships have been instrumental in driving this transformation, accelerating investments and expediting the development of critical infrastructure.

Nicolas Boukhalil, PwC Middle East’s energy, resources and sustainability deals leader, emphasized the benefits of opening the sector to international competition. 

“These partnerships are introducing new technology, improving efficiency, and making water more affordable for homes, businesses, and farmers alike. The result: a more sustainable financial model that eases pressure on public budgets and supports long-term economic growth,” he said.

He also stressed the importance of distribution networks, stating, “Producing water is only half the battle, getting it where it’s needed is just as critical. That’s why major investments are also going into water transmission networks, storage reservoirs, and smart management systems.”

Hani Tohme, partner and Middle East and Africa sustainability lead at Kearney, shed light on the current wastewater situation.

“Saudi Arabia treats over 6.5 million cubic meters of municipal wastewater each day, yet only around 25 percent of that is reused, with wastewater network coverage reaching approximately 65 percent,” he said.

The National Water Strategy aims to boost treatment and reuse significantly by 2030 — targeting treatment of up to 10 million cubic meters daily and reuse rates of 70 percent.

Tohme explained: “This enables groundwater preservation, supports industrial and agricultural reuse, and reduces dependency on energy-intensive desalination — which still provides 60 percent of urban water supply today.”

Enhancing water security

Saudi Arabia’s expansion of desalination and water purification is a cornerstone of Vision 2030, reinforcing national water security and the Kingdom’s broader transformation goals.

Nada from ACWA Power sees investment in advanced desalination as a critical response to water scarcity that also promotes economic growth through job creation and industry development.

“Since its inception, ACWA Power has consistently been an early adopter of new technologies, in full cooperation and collaboration with the full ecosystem, led by KSA Water offtaker, SWPC, achieving 87 percent reduction in specific power consumption over the last decade. This commitment to innovation is reflected in the company’s ongoing efforts to integrate sustainable and cost-effective water solutions,” Nada said.

From Arthur D. Little’s perspective, these initiatives boost economic diversification and elevate Saudi firms globally. 

The Kingdom’s current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030.

Tariq Nada, executive vice president of the Center of Excellence at ACWA Power

“For businesses, this presents significant opportunities across engineering, clean technology, and supply chain localization — while for the nation, it reinforces resilience, global competitiveness, and leadership in addressing one of the 21st century’s most pressing challenges: the sustainable management of water,” Strange explained.

PwC also notes the alignment between the Kingdom’s water strategy and Vision 2030’s goals of economic diversification and sustainability.

“As global demand for desalination and sustainable water solutions rises, Saudi Arabia has the tools, talent, and ambition to become a world leader in water technology, creating new revenue streams while solving a shared global issue,” Boukhalil said. Kearney’s Tohme emphasized the wastewater sector’s growing role in attracting private investment.

“For businesses, this creates significant opportunities in EPC contracting, localization of technologies including membrane technologies, operations and maintenance, and treated water offtake agreements, particularly in industrial zones and giga developments,” he said.

Evolution of water purification

In 2025, Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030.

Highlighting upcoming developments, Nada said: “In 2025, we anticipate an increased integration of renewable energy, with water desalination plants increasingly powered by solar energy and battery energy storage systems, further reducing their environmental impact and operational costs.”

He added: “We also expect to see a rise in the deployment of advanced membrane technologies, where next-generation membrane technologies will improve the efficiency and effectiveness of RO plants, reducing energy consumption and increasing water recovery rates.”

Nada also pointed to the role of digital technologies: “Digital technologies, such as AI, including machine learning, (will) enable real-time monitoring, optimization, and predictive maintenance of water purification plants.”

Kearney’s Tohme foresees three major shifts by 2025. He expects accelerated deployment of decentralized purification plants in underserved and remote areas, adoption of digital twins and predictive maintenance technologies to reduce operational costs and non-revenue water, and the strategic integration of treated water into agriculture and district cooling systems.

He concluded: “These trends are not just technical — they enhance Saudi Arabia’s economic resilience by separating water supply from climate stress.”

RIYADH: Saudi Arabia’s Eid Al-Adha holiday is proving to be a major economic driver, fueling robust growth across the Kingdom’s livestock, retail, and domestic tourism sectors.

Coinciding with the annual Hajj pilgrimage, the extended public holiday channels billions of riyals into the economy as businesses ramp up operations to meet soaring seasonal demand.

Livestock markets are bustling, shopping centers are teeming with eager consumers, and hotels and resorts across the Kingdom are reporting high occupancy rates — all pointing to a dynamic shift in consumer behavior and an increasingly diversified economic landscape.

Retail activity, in particular, is experiencing a seasonal boom. From glittering gold souqs and fashion boutiques to thriving e-commerce platforms, shoppers are on the lookout for Eid gifts, festive attire, and high-end products.

A recent survey by Toluna and MetrixLab shows that 47 percent of Saudi consumers expect to spend more this Eid than last year. Over half (51 percent) are boosting their shopping budgets, while 44 percent are allocating more for dining out.

Among the most in-demand items this season are fashion apparel, gold and diamond jewelry, perfumes, and electronics. In response, retailers are rolling out aggressive promotions, with 49 percent of consumers attracted to price discounts, 40 percent favoring bundled deals, and 33 percent looking for cash-back incentives.

The digital retail landscape is also witnessing significant momentum. The survey highlights that 31 percent of consumers now fall into the “heavy digital shopper” category — individuals who make purchases daily or several times a week.

“Eid gifting remains a core element of celebrations, with 89 percent of KSA residents planning to give gifts in 2025,” the report stated.  

The report added: “Luxury gifting continues to rise, with 41 percent opting for fashion cloths, up from 36 percent in 2024, dates, and sweets 45 percent, and major electronic devices gaining popularity, rising from 22 percent to 24 percent.” 

Fragrances and gourmet items such as dates and chocolates also continue to dominate gifting choices, reflecting cultural values and the desire to present meaningful and luxurious tokens of appreciation.  

The trend of self-gifting, while slightly down from 2024, remains strong, indicating the growing role of Eid as a moment for personal indulgence.

The tourism and hospitality sector stands out as one of the biggest winners during Eid Al-Adha, with hotels, resorts, and travel operators across Saudi Arabia witnessing a surge in demand.  

JS Anand, founder and CEO of Leva Hotels, told Arab News that the holiday’s timing alongside the Hajj pilgrimage makes it a uniquely impactful season, not only for spiritual observance but also for economic momentum driven by both local and international tourism. 

“Eid Al-Adha will increasingly serve as a key driver for business and consumption, benefiting both local and regional markets. Beyond its economic impact, the holiday is also a time for spiritual reflection, generosity, and community, while highlighting Saudi Arabia’s vibrant culture and hospitality,” Anand said. 

He added: “Increased consumer spending during this period benefits industries such as transportation, hospitality, and retail, while the extended holiday period further amplifies economic activity.” 

Speaking on shifting consumer behaviors, Anand noted that travelers are becoming more discerning and value-conscious. While they are not necessarily looking for the cheapest option, they want to ensure they’re getting meaningful value for what they pay. 

He added: “Guests increasingly expect hotels to deliver not just a place to stay, but a personalized, experience-rich offering that resonates with their lifestyle and preferences.” 

Domestic tourism continues to thrive, but international travel has surged in popularity among Saudi residents.  

According to Wego, 96.12 percent of Eid-related travel searches in the Kingdom are now for international destinations, up from 87.34 percent last year.  

Top destinations include Egypt, India, and the UAE, as well as Pakistan, Turkiye, and Bangladesh, along with a rising interest in European and Southeast Asian locales such as Italy, Thailand, and Malaysia. 

Despite the international travel boom, domestic destinations like Jeddah, Riyadh, and Madinah, alongside Dammam and Abha, remain popular for their cultural attractions and spiritual experiences.  

Wego data suggests that cultural exploration is becoming a primary driver in destination selection, as travelers seek meaningful connections during the holiday. 

Anand affirmed this trend: “The hospitality sector must be agile, crafting offerings that cater not only to the loyal domestic traveler but also to the rising wave of international visitors.” 

He continued: “For hotels, this means providing thoughtfully tailored packages, seamless digital booking experiences, and culturally resonant, memorable stays that appeal to both local guests and the growing base of inbound international tourists discovering Saudi Arabia during the festive Eid season and beyond.” 

Businesses are also preparing for the holiday through targeted promotions and operational enhancements. “Today, it’s all about creating value-added, memorable, immersive experiences and curating unique, personalized offerings to meet the surge in demand and deliver exceptional value.” 

Mohammed Al-Mu’ajil, a tourism expert, told Arab News that Saudi Arabia is seeing remarkable shifts in travel and consumer behavior this Eid season. 

“In 2025, Saudi Arabia witnessed a significant rise in consumer spending, with total expenditure reaching approximately SR148 billion ($39.46 billion) in March, the highest level since May 2021, reflecting a 17 percent increase compared to the previous year. This growth is attributed to the Ramadan and Eid Al-Fitr seasons, in addition to the Umrah season,” Al-Mu’ajil said. 

With more people shopping and traveling, businesses are also recalibrating their approach to Eid.  

Al-Mu’ajil also highlighted the increasing role of technology and digital outreach stating: “Companies are increasingly relying on digital channels to engage with customers, with 94.03 percent of internet users in the Kingdom active on social media platforms such as X, TikTok, and Snapchat.” 

He also explained that domestic hotel nights increased by 14 percent, while international hotel nights rose by 13 percent. 

The Kingdom recorded a 48 percent increase in international visitors during the first quarter compared to the previous year, driven by Vision 2030 initiatives and relaxed visa regulations. 

International destinations are seeing strong demand from Saudi tourists, particularly Egypt, Turkiye, and Dubai, due to their geographic proximity, cultural similarities, and diverse tourism offerings,” he said.  

“Red Sea cruises have also emerged as a new and appealing option, offering luxurious and comprehensive travel experiences.” 

He added that domestic travel remains a strong draw, stating: “On the domestic front, cities such as AlUla, Abha, Al-Baha, Jeddah, and Riyadh have become favored destinations for Saudi travelers. These cities are distinguished by their natural and cultural diversity as well as advanced infrastructure, making them attractive to families and holidaymakers during the Eid season.” 

Al-Mu’ajil added that digital platforms are increasingly central to consumer engagement, noting that the number of e-commerce users in Saudi Arabia is projected to reach 34.5 million by the end of 2025.  

“With Internet penetration expected to rise from 66.7 percent in 2023 to 74.7 percent by 2027, digital engagement is reshaping how Saudis prepare for Eid, from online bookings to promotional offers,” he said.

Increased spending

More than half — 51 percent — of consumers in the Kingdom said they are willing to spend more on Eid gifts this year.  

According to the Toluna and MetrixLab report, this is driven by a mix of improved financial confidence and a desire to make the holiday more special after years of pandemic-related limitations.  

About 38 percent of consumers expressed a desire to make this Eid more special to compensate for pandemic-era limitations, while 36 percent noted improved financial standing. 

In addition, 35 percent plan to expand their gift lists to include more people, and 30 percent expressed a desire to be more generous with their families and friends. 

These sentiments are reflected in higher spending across multiple categories. Fashion apparel, fragrances, and electronics have seen a significant bump, while gold and diamond jewelry purchases have also increased slightly.  

The trend underscores Eid’s growing role not just as a religious and cultural moment, but as a peak period of emotional expression through gifting and consumer engagement 

With 89 percent of consumers planning to give gifts, and significant growth in retail and travel expenditures, Eid Al-Adha is proving to be not just a spiritual cornerstone — but a vital pillar of the Kingdom’s economy. 

The economic impact of Eid Al-Adha is particularly evident in the livestock sector, which sees a surge in demand — particularly in sheep and goats.  

Local farmers, traders, and international suppliers navigate challenges such as rising feed costs and supply chain constraints while ensuring a steady supply.  

Although the Kingdom’s livestock market remains robust, escalating feed prices have put upward pressure on animal prices, prompting some households to consider shared sacrifices or smaller livestock options. 

Seasonal livestock markets are also set up across major cities to accommodate the peak demand period. 

The evolving behavior of Saudi consumers — seeking quality, cultural relevance, and immersive experiences — indicates broader societal shifts and economic resilience.  

As Vision 2030 continues to reshape the Kingdom’s economic landscape, seasonal events like Eid Al-Adha serve not only as cultural milestones but also as indicators for consumer confidence and economic diversification.