the board of directors of Naqi Water Company has officially approved the opening of seven new branches covering several strategic regions across the Kingdom of Saudi Arabia. Construction and outfitting work for these branches will commence immediately, with full operational launch scheduled for January 1, 2026.
Details of geographical expansion and targeted cities
According to the company's official statement published on the Saudi Stock Exchange (Tadawul) website, the expansion plan targets vital cities and governorates experiencing significant population and commercial growth. The company has identified locations for new branches in Hafr Al-Batin, Al-Khafji, Al-Majma'ah, Al-Kharj, Rumah, Al-Muzahmiyah, and Sakaka . These areas were selected based on thorough market studies aimed at bridging supply chain gaps and providing direct access to consumers outside the traditional scope of major cities.
Context of the bottled water sector in the Kingdom
This decision comes at a time when the food and beverage sector, and specifically the bottled water sector in Saudi Arabia, is experiencing steady growth driven by population increase and growing health awareness of the importance of drinking water quality. Naqi's horizontal expansion strategy is a natural response to the demands of the local market, which is increasingly favoring companies with strong distribution networks capable of meeting demand quickly and efficiently. This aligns with the goals of Saudi Vision 2030 to support the private sector and enhance food and water security.
Strategic and economic objectives of expansion
The company explained that this expansion is not limited to increasing the number of branches, but also carries important economic and operational dimensions, as this measure aims to achieve several fundamental gains:
- Boosting market share: Through a physical presence in new areas, the company ensures the acquisition of a larger customer base in the northern, central, and eastern regions.
- Improving logistics efficiency: Having local branches will reduce the operational distances of the transport fleet, which means faster delivery and preservation of product quality.
- Reducing operating costs: Reducing distances necessarily means reducing fuel consumption and fleet maintenance, which positively impacts profit margins.
- Improving the customer experience: Proximity to the end consumer contributes to reducing costs for them and improving the level of product availability on a permanent and uninterrupted basis.
Expected financial impact
Naqi Water Company expects this well-considered expansion to contribute to enhancing operational efficiency in the aforementioned areas, and to support the gradual growth of the company’s revenues during the coming periods, thus strengthening its financial position and achieving sustainable returns for shareholders by improving economies of scale and reducing waste in supply chains.
