Saudi Arabia, Japan to Establish Largest Reverse Osmosis Water Project
Saudi Arabia launched a joint venture with Japan worth SAR 350 million ($93 million) to manufacture membranes used in water desalination, aiming to export 30% of the factory’s production.
The governor of the Saline Water Conversion Corporation, Abdullah Al-Abdulkarim, said in a statement to Al-Sharq newspaper that the project will start production in 2025, and will contribute to GDP by about SAR 1.14 billion during the first five years.
According to the governor, the factory is the first of its kind in the Middle East for the manufacture of reverse members. It is also the second integrated factory outside of Japan. It is being implemented in partnership with the Local Content and Government Procurement Authority, and Toray Middle East.
70% of production inputs will be manufactured inside the Kingdom. The project is expected to have an annual impact on Saudi Arabia’s trade balance of about SAR 135 million.
Al-Abdulkarim added, on the sidelines of the project contract signing ceremony in Riyadh yesterday, Saturday, that the manufacture of environmentally friendly reverse osmosis membranes, today represents one of the most significant capabilities of the desalination industry in the world.
The demand for it is increasing at an annual rate of 6% locally and 7% Gulf. It was targeted to localize it as a basic and strategic product that adds industrial value and contributes to economic diversification.”
He noted that the project is economically feasible, as it will achieve revenues estimated at SAR 690 million by 2025 while reducing the average cost by about 14%, in addition to reducing energy consumption to less than 4%, and reducing the supply period by more than 50%.