SPLASHING THE CASH
The government is working with the private sector to ensure the population is well hydrated through Vision 2030.
Water accessibility is a serious challenge in Saudi Arabia. Not only is the Kingdom considered one of the hottest, driest countries on the face of the Earth, but it is also the largest country without a single river running through its arid land. Moreover, with the local population set to increase by 25%, to 39 million, by the landmark year 2030, quenching Saudi's thirst is increasingly becoming a question of national security.
“But where there's a challenge, there's an opportunity," said the Minister of Environment, Water and Agriculture, Abdul Rahman Al-Fadli, on the sidelines of the Water Investment Forum. The minister inaugurated the two-day event, held in Riyadh in November 2016, with one strong message: Saudi's water industry would be opening its doors to private investors, and foreign capital is more than invited. Specifically, the newly merged ministry has set a target to double the volume of desalinated water produced in the Kingdom over the next 15 years. The desalination method accounts for the vast majority of water consumed in Saudi, with 29 operational plants pumping 4.6 million cubic meters daily. Yet, according to sources within the Ministry, in order to double production capacity, the industry is looking to attract up to USD53 billion in the coming years.
A major beneficiary to these reforms will be the Saline Water Conversion Corporation (SWCC), the government's entity responsible for desalinating seawater; also, incidentally, the biggest of its kind in the world. Speaking exclusively to The Business Year, SWCC Acting-Governor Ali Al-Hazmi highlighted the pace of these reforms by explaining that the Kingdom is aiming for 52% of desalinated water to be produced through strategic partners by 2020. For Al Hazmi, the former Sasref president brought in weeks before the investment forum to kickstart and oversee the privatization process, the challenge starts immediately. First, he argues, the organization must clean up its own act before it presents itself to investors, “As one would his own car before putting it on sale." Thus, throughout 2017 “we expect to continue improving the efficiency of SWCC plants, meeting the needs of our customers, and planning for future water demand. SWCC will continue to accelerate plans to prepare for its commercial role." Specifically, this will include “improving mechanical ability by 11% and the utilization of our facilities from 82-93% over the next 12 months."
By the end of March 2017, Al Hazmi expects to present a business plan to the minister, which will detail SWCC's future expansion and will be the private sector's cue to enter. “Many firms are interested, and we want to see a multinational consortium investing in the project. It would be good for the Kingdom because these firms would bring competition and high technical knowledge and standards. By working with others we can do better."
SPLASHING THE CASH
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
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