The Saudi Water Authority signs an agreement with the Asian Infrastructure Investment Bank and the National Infrastructure Fund to finance the development of the Jubail and Khobar desalination systems, valued at 650 million US dollars

The Saudi Water Authority signed a financing agreement with the Asian Infrastructure Investment Bank (AIIB), and the Saudi National Infrastructure Fund (Infra), to support a strategic project aimed at developing the seawater-desalination infrastructure of the Jubail phase one and Khobar phase two systems, valued at 650 million US dollars. 
 
The commitment support letter was signed on the sidelines of AIIB’s tenth annual Board of Governors meeting in Beijing on 26 June 2025, by Eng. Sharekh Al-Sharekh, Vice-President for Technical Affairs and Projects, and Eng. Abdullah Al-Zuwaid, Head of Desalination Operations—both of the Saudi Water Authority—alongside Mr. Najeeb Haider, Director General, Project and Corporate Finance Clients Department, Global of AIIB, and Infra’s Chief Financial Officer, Mr. Sattam AlJuhani, in his capacity as the Acting Chief Investment Officer. 
 
The agreement comes as a continuation of the joint announcement signed earlier this year between the AIIB and the Government of the Kingdom of Saudi Arabia, which laid out a framework for long-term cooperation in the fields of water, sanitation, renewable energy, sustainable transport, and urban development. 
 
The project aims to upgrade the Jubail phase one production system and the Khobar phase two production system from multi-stage flash thermal desalination technologies to reverse-osmosis (RO) technology, boosting energy-consumption efficiency, increasing water-production capacity and extending the operational life of the two systems by about twenty years, in support of the Kingdom’s sustainability and climate targets under Saudi Vision 2030. 
 
The Khobar phase two production system established a world record as the largest RO seawater-desalination plant, producing 670,852.4 m³ of water per day, yet occupying the smallest land footprint in its class—an achievement made possible by advanced engineering methods and value-engineering practices. 
Under the agreement, the Asian Infrastructure Investment Bank (AIIB) will provide financing of up to 450 million US dollars (⃁ 1.68 billion) one of the largest non-sovereign institutional financing deals supported by AIIB to date. This milestone strengthens collaboration between the public and private sectors in advancing strategic infrastructure projects. Infra will contribute 200 million US dollars (⃁ 750 million). This financing is in support of the water sector in the Kingdom, one of Infra’s key priority areas, in support of the objectives of Saudi Vision 2030. 
 
The agreement is expected to provide new insights and practices that can be applied to similar desalination projects in the Middle East and North Africa, in light of the priority of addressing water scarcity. 
The Saudi Water Authority’s Eng. Sharekh Al-Sharekh noted that, “This agreement embodies an effective model of partnership between the Kingdom and international financing institutions to support the development of vital water infrastructure.” 
 
He added, “This financing is an important step toward enhancing the sustainability of the water sector, adapting to climate challenges, and increasing the efficiency of national projects, and confirm the confidence of international institutions in the Kingdom’s ability to implement high-quality projects that contribute to sustainable development and support the targets of Saudi Vision 2030 in developing the water and infrastructure sector.” 
 
Konstantin Limitovskiy, Chief Investment Officer of AIIB’s Public Sector (Region 2) and Project and Corporate Finance (Global) Clients, said: “This deal reflects the AIIB’s strong commitment to supporting sustainable infrastructure in the Middle East and North Africa. By supporting the modernisation of desalination assets, we contribute to enhancing climate adaptability, energy efficiency and long-term water security in the Kingdom.” 
 
“We are pleased to work alongside AIIB and the Saudi Water Authority on this important project. It represents a constructive step in expanding international collaboration to support critical infrastructure in Saudi Arabia, and we welcome this opportunity, which contributes to facilitating AIIB’s expansion in the region through their first financing in Saudi Arabia” added Infra’s Acting Chief Investment Officer, Sattam AlJuhani. 
This project aligns with the signing parties’ priorities of developing climate-resilient infrastructure and enhancing future readiness while achieving sustainable development.