Saudi Arabia’s water demand is expected to increase from 5.2 billion cubic metres annually in 2022 to 5.9 billion cubic metres annually in 2027, driven by the expected population growth of 3.6 percent to 38.4 million people, Miahona Company said in its Initial Public Offering (IPO) prospectus.

The company expects to bag more contracts in the second phase of the state-backed National Water Company’s (NWC) water services contracts.

The six regional clusters are currently in Phase 1 under Manage-Operate-Maintain (MOM) contracts with a seven-year tenure, which will transition to long-term concession arrangements in Phase 2. The company has been awarded two MOM contracts in phase 1. 

The prospectus said that transitioning the six clusters will require an estimated additional investment of more than 25 billion Saudi riyals ($6.67 billion), offering substantial growth opportunities for the company. Moreover, the overall impact of privatisation, government initiatives regarding PPP and macroeconomic factors create a large market opportunity.

The Prospectus noted that Miahona has been awarded or selected as the preferred bidder at a win rate of 80 percent in the last three years.

Saudi Water Partnership Company (SWPC), the company’s major customer, has announced a seven-year plan to increase sewage treatment capacity by 2.3 million cubic metres by 2027. Despite this planned expansion, a capacity gap of 2 million cubic metres remain as identified in Vision 2030, necessitating further investment. 

Read more: Saudi water PPP company Miahona plans IPO, Tadawul listing

(Editing by Anoop Menon) (

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