Eastern Integrated Pipes Company for Industry, a leader in the manufacturing sector in the Kingdom, announced the signing of a huge contract with the Saudi Water Authority, with a total value exceeding 485 million Saudi riyals including VAT, in a move that enhances the company’s position in the water infrastructure market.
Contract details and financial impact
According to the official statement published on the Saudi Stock Exchange website “Tadawul” on Monday, the contract was signed on December 7, 2025. The agreement stipulates that “Eastern Pipes” will manufacture and supply steel pipes for the projects of the Saudi Water Authority, with the contract duration set at 6 months.
Regarding the financial impact of this transaction, the company explained that the financial implications will begin to appear in the financial statements during the fourth quarter of the 2025/2026 fiscal year, and will extend to include the first quarter of the 2026/2027 fiscal year, which bodes well for strong cash flows for the company during the coming period.
Strengthening the water infrastructure in the Kingdom
This contract comes within the context of the significant developmental progress witnessed by the Kingdom of Saudi Arabia in the water sector, where the Saudi Water Authority (formerly the Saline Water Conversion Corporation) is responsible for enhancing water supply security. Pipeline supply contracts play a pivotal role in connecting desalination plants to strategic distribution networks, ensuring the efficient and reliable delivery of desalinated water to all regions of the Kingdom.
The Eastern Pipes Company is a strategic partner in this system, as it has a proven track record of supplying major national projects with spiral steel pipes used in transporting water, oil and gas, reflecting the growing confidence in the national product and its ability to compete and meet global standards.
Alignment with the Kingdom's Vision 2030
This contract is particularly important as it aligns with the goals of Saudi Vision 2030, specifically the National Industrial Development and Logistics Program (NIDLP). Relying on local factories like "Eastern Pipes" to implement vital infrastructure projects enhances local content, contributes to the localization of heavy industries, and reduces dependence on imports.
This signing also reflects the continued government capital spending on basic infrastructure projects, which is a positive indicator for the contracting and industrial sector in the Kingdom, and confirms the state’s commitment to developing water networks to keep pace with rapid population and urban growth.
