Al-Khorayef Water and Energy Technology Company, a leading company in the water and energy sector in the Kingdom of Saudi Arabia, announced that it has been awarded a strategic contract to operate and maintain stormwater and surface water networks in several sub-municipalities in Jeddah. The contract is valued at SAR 155.09 million (excluding VAT) and extends for a period of 60 months (five years), reflecting confidence in the company's capabilities and extensive experience in this field.
Under this contract, Al-Kharif Company will be responsible for the operation and maintenance of stormwater drainage networks, including both closed and open channels, in the municipalities of Al-Balad, Al-Jami'ah, and Umm Al-Salam. The project aims to ensure the efficiency and capacity of these vital networks to handle stormwater, thereby protecting lives and property and mitigating the negative impacts of potential flash floods in the city.
Historical context and importance of the project for the city of Jeddah
Stormwater drainage projects are of paramount importance in Jeddah due to its coastal location on the Red Sea and its geographical features, which make it prone to sudden heavy rainfall. In the past, this has led to catastrophic flash floods, most notably in 2009 and 2011. These events highlighted the urgent need for a comprehensive infrastructure capable of handling climate challenges. Since then, the Saudi government has prioritized the implementation of strategic projects to mitigate flood risks and enhance the city's drainage systems, and this contract is part of these ongoing efforts.
Expected impact and alignment with Vision 2030
The project is expected to have a significant positive impact locally, contributing to increased public safety and a better quality of life for residents of the neighborhoods covered by the contract. It also enhances the sustainability of Jeddah's infrastructure, making it more resilient to extreme weather events. More broadly, this project aligns with the goals of Saudi Vision 2030 , which aims to build modern, sustainable cities and provide a safe and prosperous urban environment for citizens and residents.
Financially, Al-Khorayef Company stated in a statement on the Saudi Stock Exchange (Tadawul) that the financial impact of this contract is expected to begin to be reflected in its financial results starting from the second quarter of 2026. This win is an important addition to the company's project portfolio, enhancing its position as a reliable partner for the government sector in implementing vital projects that serve national development.
