Strong population growth and a development boom in Saudi Arabia have resulted in unprecedented demand for effective and efficient power and water supply.

High demand means high profits for efficient operators

In Saudi Arabia, sharp population growth rates, a trend towards urbanization and industrial development and historic under-investment have created an environment of extremely high demand and limited supply for power and water. With new power stations and desalination plants in high demand, operators in KSA enjoy some of the highest annual growth rates in the world, with strong profit margins for efficient companies.

Additional power generation capacity is planned, as well as a 30,000 km extension to the Saudi’s transmission network and US$24 billion investment in additional water capacity. Privatizations in the sector will also create attractive investment opportunities.

Good reasons to invest

• Significant and growing excess demand for power and water in many key regions of the KSA create excellent opportunities for long-term assets
• Investment is needed in transmission and distribution networks, as well as in power generation and desalination capacity
• Privatization, unbundling and a pro-investment climate are making the sector more friendly to the private sector; a majority of planned capacity increases will come from private investors
• At 6% per annum, growth rates in power and desalinated water are among the world’s highest