Nawaf Y. Husein
Faculty Member
Msc, CRP , CLBB
Saudi Training Society Member
Institute of Banking
Saudi Arabian Monetary Agency ( SAMA)
P.O.Box : 10820 Riyadh 11443 Saudi Arabia
Tel : + 966 1 463 3000 Ext. 3825
Fax: + 966 1 466 2368
Mobile : + 966 55 48 44 828
Linkedin
SKYPE : abuhejleh2
Dear Readers,
Please find attached our latest In-Focus report: The Saudi Water Sector: "Balancing Water and Food Security Against Rising Water Demand Challenges in the Kingdom"
Executive Summary
· Saudi Arabia's rapidly rising population, urbanization and industrial development and large investments in social and physical infrastructure, have exerted demand pressure on the existing water resources.
· In 2012, contracts in the water sector amounted to a total of SAR8.9 billion, and those in the waste water sector amounted to SAR2.6 billion.
· Inefficiencies in water consumption at the national level have called for enhancing water use efficiency in the agricultural sector.
· In 2009, The King Abdullah Initiative for Saudi Agricultural Investment Abroad was launched with investment amounting to SAR3 billion from private sector Saudi companies.
· The water sector in the Kingdom is highly subsidized directly–to end-users who pay below production cost–and indirectly, in the form of fuel credit subsidies.
· End-users in the Kingdom pay low water costs which range between 5%–10% of the actual production cost in the public sector.
· Saudi Arabia is the largest producer of desalinated water in the world – it currently accounts for an 18% share of global output.
· Using a total cost of SAR6.29 which includes a weighted average production cost of SAR2.77/m3, SAR1.12/m3 and SAR2.4/m3 attributable to the cost of transportation and distribution, respectively, then it can be inferred that the market size for the public water sector is equivalent to SAR5,572 million.
· Challenges include the rapid depletion of groundwater resources, and the costly desalination process, which consequently creates a lack of fuel monetization.
· The Kingdom is looking at an alternative energy mix for sustainability. In 2012, the Kingdom began operations at the world's largest solar-powered water desalination plant in the city of Khafji, with a capacity of 30,000 m3/day.
Best regards,
Telephone: +9662646-3232 FAX: +9662644-9783
.
No comments:
Post a Comment