Al-Khorayef Water and Energy Technology Company, a leading company in the water and energy sector in Saudi Arabia, announced that it has won a strategic contract with the Jeddah Municipality to enhance the efficiency of the infrastructure in facing the challenges of rain and flash floods. According to the company's disclosure on the Saudi Stock Exchange (Tadawul), the contract is valued at SAR 108.46 million and extends over a period of 60 months (five years).
The scope of the contract includes the completion of the operation and maintenance of stormwater and surface water drainage networks in several vital sub-municipalities south of Jeddah, namely the Southern Municipality (SO) and the Al-Malisa Municipality (ML). The company expects the financial impact of this project to begin appearing in its financial results starting from the third quarter of 2026, and confirmed that it will announce any future developments after receiving the final version of the contract and its signing by all relevant parties.
Historical context and importance of the project for the city of Jeddah
This step comes as part of ongoing efforts by the Jeddah Municipality to address one of the most significant challenges facing the coastal city. Jeddah's geographical location and topography make it vulnerable to the effects of heavy seasonal rains, which can turn into devastating flash floods. The city has witnessed destructive floods in the past, specifically in 2009 and 2011, highlighting the urgent need for a radical overhaul and expansion of its drainage networks.
Since then, the Saudi government has placed great emphasis on implementing strategic projects to mitigate flood risks and protect lives and property. This contract represents another link in a chain of massive infrastructure investments aimed at building an integrated and efficient stormwater management system, thereby enhancing the city's resilience to extreme weather events.
Expected impact and alignment with Vision 2030
The impact of this project extends beyond operational aspects to include significant social and economic dimensions. Locally, the project will contribute to increased safety and security for residents of southern neighborhoods, reduce potential damage to public and private property, and improve the overall quality of life by preventing the formation of swamps and stagnant water.
At the national level, the project aligns perfectly with the goals of Saudi Vision 2030, which prioritizes improving the quality of life in Saudi cities. This collaboration between the public sector, represented by the Jeddah Municipality, and the private sector, represented by Al-Khorayef Company, reflects a trend towards strengthening partnerships to implement sustainable development projects that serve citizens and support the national economy. This contract is a testament to the confidence in the ability of national companies to execute vital infrastructure projects according to the highest international standards.
