Al-Khorayef Water and Energy Technology Company, listed on the Saudi Stock Exchange, announced the signing of a new contract with the National Water Company to carry out operation and maintenance work on water networks and facilities in Tabuk. This move reinforces the company's position as a key player in the water infrastructure sector in Saudi Arabia.
Contract details and schedule
The company clarified in an official statement published on the Saudi Stock Exchange (Tadawul) website that the total value of the contract is SAR 43.35 million. Under this agreement, Al-Khorayef will be responsible for operating and maintaining the water networks, pumping stations, wells, reservoirs, and all related facilities in the city of Tabuk. The contract duration is set at 36 months, reflecting a long-term commitment to improving the efficiency of water services in the region.
Expected financial impact
Regarding the financial implications of this transaction, Al-Khorayef Company expects the project's financial impact to begin appearing in its financial results by the fourth quarter of 2025. This contract represents a significant addition to the company's growing project portfolio, which will enhance its future cash flow and support its expansion plans.
The context of the water sector and Vision 2030
This signing comes amidst significant developments in the Saudi Arabian water sector, in line with the goals of Vision 2030. Through these partnerships with the private sector, the National Water Company aims to enhance operational efficiency, reduce network losses, and ensure the sustainability of water resources. Companies like Al-Khorayef play a pivotal role in implementing the National Water Strategy, which aims to provide world-class and sustainable water and wastewater services.
The strategic importance of the Tabuk region
Infrastructure projects in the Tabuk region are of particular importance due to the region's strategic geographic location, its population and urban growth, and its proximity to mega-projects such as NEOM. Developing and regularly maintaining water networks ensures a continuous water supply and supports economic and social development in the northwestern region of the Kingdom, giving this contract a developmental dimension that extends beyond mere operation and maintenance.
