In response to shifting economic trends, diversification, and non-oil trade development, the Saudi government has allowed several types of private sector involvement in the Kingdom's water industry, including whole or partial asset sales, IPOs, management buyouts, PPPs, and outsourcing.

KPMG's recent research, Success Factors for Public-Private Partnerships throughout the Water Sector, digs into the anticipated rise in water consumption, as the Saudi population (37.27 million-2021) is forecast to grow to 40.1 million by 2030, with a 2.6% annual GDP growth. Population expansion would also have a significant influence on wastewater, greatly increasing it by 50%.

The KPMG analysis covers most of the UN's Sustainable Development Goals (SDGs), including SDG-6 (clean water and sanitation) and SDG-17 (partnerships). It embodies the fact that a robust project governance model, transparency, a competent team, stringent monitoring, effective risk mitigation, and investor-friendly policies are critical facilitators of an effective process of privatization.

The Saudi National Water Strategy (NWS), which is associated with Vision 2030's Privatization Program, has goals for the privatization of government assets. Other areas aimed for Public-Private Partnerships (PPPs) include primary and secondary healthcare, renewable energy production, and public transportation. Ports are scheduled to be corporatized before being privatized.

The water plan takes a long-term approach to the water sector, pledging to protect the country's key natural resources, the environment, and to provide cost-effective and high-quality services. It assures the Kingdom's water sector's competence and support to the national economy through effective administration, private-sector engagement, localization of competencies, and innovation.

The private sector's engagement remains a significant emphasis of Saudi Arabia's National Water Strategy to enhance the water and wastewater sectors. Public-Private Partnerships (PPPs) in water and wastewater have stimulated FDI, job creation, and domestic capacity development owing to the socioeconomic advantages. Foreign investors such as Spain's Acciona, Veolia, and Marubeni greatly contributed to the development of indigenous skills.

The Kingdom's privatization project in the water sector, which is integrated with a larger privatization initiative has been undertaken by the Saudi sub-cabinet Council of Economic and Development Affairs (CEDA) to fulfill the Vision 2030 objectives.

The important participants in the public water industry are as follows: Ministry of Environment, Water and Agriculture (MEWA), Saudi Water Partnership Company (SWPC), National Water Company (NWC), Saline Water Conversion Corporation (SWCC), Water Transmission and Technologies Company (WTTCO) and National Center for Privatization and PPP (NCP).

KPMG cites a case study of Saudi Water Partnership Company (SWPC), which has developed as one of the GCC region's leaders among PPP grantors. SWPC's successful PPP model is well-suited for infrastructure sectors and international corporations interested in investing in Saudi water.

Regional and international investors interested in infrastructure asset purchase and investment in Saudi Arabia have praised SWPC's privatization success model.

The knowledge gained from the SWPC experience is invaluable in terms of promoting private involvement in typically government-run services. Furthermore, adequate procurement governance and contract structures for assets and asset packages would offer low-cost capital, affordability, efficiency, and quality of service.

The privatization ambitions in Vision 2030 would necessitate a similarly open-minded and international attitude by all players in the water and other sectors, attracting bigger individual and institutional investments into the Kingdom.