Saudi Arabia depends on desalination for more than 70% of its drinking water, so localizing this critical technology matters greatly for the Kingdom’s long-term water security. The Saudi Water Authority (SWA) has now taken that step, partnering with California-based Energy Recovery Inc. to build the world’s first energy recovery device (ERD) factory outside the United States. The plant, located near Dammam Second Industrial City, will begin production in the first quarter of 2027.
Why it matters: Saudi Arabia has no permanent rivers or lakes, so it relies almost entirely on seawater reverse osmosis for fresh water. Energy recovery devices capture and reuse the pressure this process generates, cutting energy use sharply. Energy Recovery’s PX Pressure Exchanger, for instance, reaches up to 99% efficiency and reduces energy consumption by as much as 60%, with just one moving part and a 30-year lifespan. As a result, local manufacturing will lower import dependence, speed up delivery to desalination plants, and strengthen the entire supply chain.
By the numbers:
2,000 units: annual production capacity once the plant opens
1,200 units: estimated domestic demand, leaving a 40% surplus for export across the Gulf Cooperation Council, Africa and Asia
SR547 million: total regional market potential, including SR247 million within the Kingdom
SR137 million: projected GDP contribution by 2033
80%: target local-content threshold across the value chain
Boosting Industrial Local Content
Beyond the numbers, the project delivers on national industrial goals by transferring high-tech manufacturing expertise into the Saudi economy. It will generate more than 50 direct technical jobs and nurture local engineering talent, since an 80% local-content share signals genuine technology transfer rather than simple assembly work.
The SWA led the initiative alongside the Ministry of Investment, the Ministry of Industry and Mineral Resources, and the Local Content and Government Procurement Authority. Together, these bodies streamlined regulatory requirements to fast-track operational readiness.
What they’re saying: “Manufacturing our proprietary PX technology closer to the world’s largest desalination market allows us to support Saudi Arabia’s water security and Vision 2030 goals more directly and to build lasting in-Kingdom expertise,” said Alex Buehler, interim president and CEO of Energy Recovery. “Geographic diversity in our manufacturing footprint has been a linchpin of our operating strategy, and this facility is a concrete step in that direction.”
Global Desalination Leadership
Saudi Arabia is the world’s largest producer of desalinated water, so domestic component manufacturing ensures uninterrupted clean water deliveries to millions of beneficiaries while reinforcing regional economic growth. Energy Recovery’s technology already underpins more than 11 million cubic meters of Saudi fresh water production daily, and the firm recently secured a separate contract to equip a flagship plant serving roughly one million residents across Mecca, Al-Baha and Asir.
What’s next: Once the new plant opens, it will supply Saudi desalination projects directly and transfer valuable know-how to local engineers. This supports the SWA’s target of cutting the water sector’s energy intensity by 30% by 2030, versus 2019 levels, while positioning Saudi Arabia as a rising hub for desalination technology manufacturing.
