Al-Khorayef Water and Energy Technology Company, a leader in the operation and maintenance of water projects in the Kingdom of Saudi Arabia, announced the signing of a contract awarding a new vital project with the Jeddah Governorate Municipality, which aims to enhance the infrastructure of rainwater and surface water drainage networks in a number of key neighborhoods in the governorate.
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul) website, the total value of the project is approximately SAR 155 million. The scope of work for this contract includes the operation, maintenance, and cleaning of stormwater and surface water networks within three vital sub-municipalities: Al-Balad Municipality (BA), Al-Jami'ah Municipality (JA), and Umm Al-Salam Municipality (US).
Contract details and financial impact
The company clarified that the contract duration extends for 60 months (five years), reflecting the long-term nature of this service project. Regarding financial projections, Al-Khorayef indicated that the financial impact of this project will begin to be reflected in the company's financial statements starting from the second quarter of 2026, thus enhancing the stability of the company's cash flows in the medium and long term.
The project's importance to Jeddah's infrastructure
This project is of particular importance given Jeddah's geographical and climatic characteristics, where relevant authorities place great emphasis on developing and maintaining stormwater drainage networks. Regular maintenance and continuous cleaning of these networks are the first line of defense to ensure smooth traffic flow and protect public and private property during the rainy season. This contract covers densely populated and commercially active areas such as the historic Al-Balad district and the University area, further underscoring the critical importance of quality in both execution and operation.
Strengthening the role of the private sector in development
This collaboration between Al-Khorayef Water and Energy Technology Company and the Jeddah Governorate Municipality comes within the context of the Kingdom's general direction towards enabling the private sector to manage and operate public facilities with high efficiency, in line with the objectives of the Kingdom's Vision 2030. The Vision seeks to raise the efficiency of government spending and improve the quality of services provided to citizens and residents by assigning operation and maintenance projects to specialized national companies that possess the necessary technical expertise and operational capabilities.
Al-Khorayef Company is considered one of the leading companies in this field, as it has a proven track record in implementing water, sanitation and energy projects in various regions of the Kingdom, making it a strategic partner for the government sector in sustainable infrastructure projects.
