How water sector PPP model attracts FDI into Saudi Arabia

How water sector PPP model attracts FDI into Saudi Arabia

By Islam Al Bayaa In wake of shifting economic trends, diversification and non-oil trade development, the Saudi government has opened various forms of private sector investments such as full or partial assets sale, IPOs, management buyouts, PPPs and outsourcing in the water industry of the Kingdom. KPMG's latest report titled Success factors for Public Private Partnerships in the water sector delves into the prospected increase in water demand, as the Saudi population (37.27 million-2021) is expected to increase to 40.1 million by 2030, combined with a GDP growth of 2.6% per year. The population growth will also have a profound impact on wastewater to a potential 50% increase. KPMG study subtly covers most of the UN's Sustainable Development Goals (SDGs), especially, SDG-6 (clean water and sanitation) and SDG-17 (partnerships). It encapsulates that strong projects governance model, transparency, qualified team, strict monitoring, effective risk mitigation and investor-friendly regulations are key enablers to institute a successful privatization process. The Saudi National Water Strategy (NWS), aligned with the Vision 2030's Privatization Program, sets forth objectives for privatizing the government assets. The other sectors targeted for Public-Private-Partnerships (PPPs) include primary and extended healthcare, renewable energy generation and public transport. Ports are planned to be