Construction Reports

Saudi Arabia Power & Water Industry Overview - May 2010

Title: Saudi Arabia Power & Water Industry Overview - May 2010
Published on: 04-01-2011 Price: $650.00

Amidst the global economic downturn in 2009, an industry which has attracted the fifth largest investment in the world is the Power and Water desalination industry of theKingdomofSaudi Arabia. As the country diversifies from being the world’s largest producer of oil to a rapidly industrializing economy, infrastructure is struggling to keep up and the utilities sector in particular faces a widening gap between demand and supply. Traditionally low tariffs coupled with rigidity to upward revisions across the power and water sectors have made it difficult for the government alone to expand capacities to cater to rising demand on a profitable scale, necessitating privatization that has been the buzzword of the decade.

However, the pace of progress across the sector has been hampered by a number of socio economic factors, including global economic conditions, private investors facing global credit shortage, slow pace of privatization and reform in the kingdom and factors more specific to the industry such as low tariffs that do not recover costs, lack of metering and past sectoral policies that encourage wastage and widen demand supply gap.

Measures have been instituted to change these restraints to the growth of the industry to its best potential, including research on alternative fuels that would reduce costs and conserve non-renewable resources and policy actions to check wastage of existing resources in the power and water sectors such as withdrawal of subsidies to agriculture and instead rely on imports to meet domestic demand. The effects of these measures are likely to be witnessed over a period of time.

Ventures Middle East with its vast experience on up to date tracking of the power and water projects across the Middle East, aims to study the drivers and restraints to the growth of the power and water desalination industry in theKingdomofSaudi Arabia. It studies the industry in terms of its size, its key players, with a statistical overview of the most recent construction spend and contractor awards in the sector. The report also conducts a probability impact study of the various political, economic, social, technological, legislative and environmental trends impacting the power and water desalination industry inSaudi Arabia.

This study is a critical guide to understanding the forces that produce the changes in the power and water markets and in making informed decisions on the industry.

Table of contents:

Executive Summary

The Kingdom of Saudi Arabia 2010 at a Glance

KSA and its Regional Associations to Increase Global Competitiveness

The KSA Power and Water Desalination Industry Overview

Power and Water Desalination Industry Overview

Industry Structure

Factors Influencing Power and Water Desalination Industry- a PESTLE Analysis

Significant Political Influences on the Industry

1. Conservative Government Policies Mar ProjectAttractiveness

2. Privitization and Investment Drive Development of Utilities

3. Significant Policy Decisions Shape Utilities Growth

Agriculture Imports to Replace Self-sufficiency to Conserve Utilities

Economic Diversification to Reduced Dependence on Oil to Spurt Utilities Demand

Significant Economic Influences on the Industry

1. Availability of Easier Credit and Sovereign Backing Fuels Development in Utilities

2. Subsidized Tariffs Widens Demand Supply Gap and Deters Power Projects

3. Greater Investment across Sectors, Real Estate and Tourism Increasing Demand for Utilities

Significant Social Influences to the Growth of the Industry

1. Population Growth and Urbanization Drives Utilities Growth

Legal and Regulatory Changes influencing the Industry

1. Overhaul of Judicial System to meet International standards and attract Investors in the Economy and Utilities sector

2. Simplification of Business Startup procedures in the Kingdom to improve Ease of Doing Business in the Utilities Sector

3. Codification and Internationalization of laws to make ease of legal operating in the Kingdom’s legal system for global investors in the Utilities sector

Technological Factors Driving Utilities

1. Insurgence of Alternative Fuels Reduces Hydrocarbon Dependencies in Utility Sector

2. Overhaul of existing plants to increase lifespan

Environmental Influences on the Utilities Sector

1. Renewable Energy sources Encouraged to Conserve Utilities

Harnessing solar energy for Desalination

2. Measures to Check Wastage and Conserve Utilities

The KSA Power Sector Overview

The Power Sector in theKingdomofSaudi Arabia

Power Losses across Generation, Transmission and Distribution

Widening Gap between Power Demand and Supply in KSA

New Proposed Industry Structure

Advent of Alternative Energy Sources

Expansion Financing Troubles in the Global Downturn

KSA Water Desalination Sector Overview

Focus on Agricultural imports to conserve water

Water Conservation Measures

Privatization as a Key Measure to improve infrastructure

Market Overview

The KSA Power and Water Desalination Market

Major Clients

Saudi Electric Company (SEC)

Ministry of Water and Electricity (MOWE),Saudi Arabia

Saline Water Conversion Corporation (SWCC)

Major Consultants

Major Contractors

Arabian BEMCO Contracting, SaudiArabia

Alstom Power,Saudi Arabia

Al Mabani General Contractors,Saudi Arabia


The Power and Water Desalination Industry: Major Drivers and Restraints, 2010

The KSA Power and Water Desalination Industry-The Path Ahead

Code of Ethics

Ventures Onsite - MENA Projects Database

List of Figures

Figure 1:Saudi Arabiaat a Glance

Figure 2: Share of Public Utilities in GDPSaudi Arabia, 2009

Figure 3: Structure of the Power and Water Desalination Industry 2010

Figure 4: PESTLE Analysis ofSaudi Arabia

Figure 5: GDP and Population Growth, Saudi Arabia, 1974-2010

Figure 6: Impact Probability Matrix

Figure 7: Generation Capacity and Peak Demand, Saudi Arabia, 1971-2010

Figure 8: Power Sold and Number of Subscribers Saudi Arabia, 1971-2010

Figure 9: Shares of Electricity Consumption bySegment,Saudi Arabia, 2008

Figure 10: Proposed ECRA structure on Completion of Restructuring and Privatization

Figure 11: Annual Production ofWater,Saudi Arabia, 1980 to 2010

Figure 12: Trends in Contracts Awarded in KSA Power and Water Desalination Market, 2008 to 2013

Figure 13: Construction Spend Trends in KSA Power and Water Desalination Market, 2008 to 2013

List of Tables

Table 1: Major Economic Indicators

Table 2: Funding Requirements of the Expansion in the Power Sector Segments,Saudi Arabia, 2010

Table 3: Power Generation Projects and Capacity inSaudi Arabia, 2008

Table 4: Electricity Generated and Lost, Saudi Arabia, 2007-2008

Table 5: Major Clients in KSA Power and Water Desalination Industry

Table 6: Major Consultants in KSA Power and Water Desalination Industry

Table 7: Major Contractors in KSA Power and Water Desalination Industry

Table 8: Drivers and Restraints to the Growth of the Power and Water Desalination Industry and its Markets

Back to reports

Searching for a customized report that is tailored to your business?

Ventures Middle East's Advisory Services Division provides you with in-depth strategic consulting services including:


and much more.. Contact us now