Privatization Program

To this effect, the key objectives of the SWCC privatization were developed to better strike a balance between the expected gains. Accordingly, the Council of Economic and Development Affairs has approved the following objectives:

  1. To better improve customer service and quality at the lowest possible costs;
  2. To further attract investors and encourage private sector participation;
  3. To reduce government-based expenditure;
  4. To well develop the sector, create a highly competitive environment and support local content;
  5. To put into action ease of implementation and optimization to reduce the time and effort required.

SWCC is one of the economic and social bedrocks in the Kingdom of Saudi Arabia and a major contributor to achieving Vision 2030. Of great note, the SWCC standards of the associated activities and operations – par excellence – always go in perfect harmony with the goals of sustainability, driven by its global leading role in this industry as the largest producer of desalinated water across the world. Equally important, SWCC always evinces greater readiness to start a new phase to address any imminent crises that loom large in the horizon in such a seamless manner as to develop feasible solutions that protect the future of water security for the Kingdom and the world. With this in mind, privatization has become one of the most appropriate basic measures for the SWCC future role.

What are the goals to be achieved by SWCC at various levels through privatization?

Robust engagement in economic development through privatization

With the privatization of the SWCC assets coming into play, SWCC has sought to further develop its strategy to well integrate with the Kingdom's Vision 2030 and better enhance its efficient contribution to making economic development through realizing investment returns and increasing local content.

Taken together, strategic partnerships are engineered and built to further enhance efficiency and reduce costs across the board at the production and transmission stages. To this effect, the Water Transmission and Technology Company was officially established back in 2020.
Accordingly, the Water Transmission and Technology Company is mandated with a whole host of tasks, including management, operation and maintenance of water transportation, storage and support systems across the various regions of the Kingdom. This also includes working out innovative solutions inspired by water technologies and research studies for better human qualification and development and to better enhance the Kingdom's leadership in the desalination industry, beyond compare. Combined together, SWCC has also designed and developed a specialized digital platform that provides relevant project documents, training materials and lessons learned, to mention but a few.


Privatization Goals

With the go-ahead given for a set of privatization-driven goals by the Council of Economic and Development Affairs, SWCC aims to achieve the following to further enhance its leading role in the Kingdom of Saudi Arabia and beyond:

  1. To better improve customer service and quality at the lowest possible costs;
  2. To further attract investors and encourage private sector participation;
  3. To reduce government-based expenditure;
  4. To well develop the sector, create a highly competitive environment and support local content;
  5. To put into action ease of implementation and optimization to reduce the time and effort required.

Striking a balance between the interests of the public sector, the private sector and the consumer

Driven by the privatization objectives in tandem with the private sector, SWCC has well observed and kept the interests of the various parties in balance. For the public sector, privatization per se will reduce the government-derived expenditure, hence keep the dependence on government to a minimum through sustainable cost recovery

and attracting private sector investment in the water sector infrastructure, while ensuring the achievement of water security at the optimal level. To this effect, capital of multiple sources is unlocked and invested in such an environment that ensures that efficiency and sustainability are much improved by leveraging the capabilities of the private sector.
Equally important, the private sector will realize remarkably attractive returns commensurate with the potential risks; it will further make enormous gains by improving operational performance as well as access to long-term investment ample opportunities. In a similar vein, privatization will also enhance the quality of customer service, reduce associated cost and upgrade the level of water security.