21 February 2025
Between February 1-6, 2025, a selected group of experts and representatives of TEHA Group’s business community has embarked on a journey in Saudi Arabia that was focused on sustainable water supply management and smart cities: two topics that are being monitored by TEHA through our “Value of Water for Italy Community” and “Smart Building Community”.
The participants had the exclusive opportunity to explore the Saudi ecosystem and meet with its decision-makers and private companies, with specific attention dedicated to the water, energy, and infrastructure sectors, delving into the Saudi Vision 2030 that is leading all efforts and investments to make Saudi Arabia a sustainable, advanced and innovative nation.
Saudi Vision 2030
The Vision 2030 is a long-term strategic plan launched in 2016 by Crown Prince Mohammed bin Salman to transform Saudi Arabia into an economically diversified and more sustainable country, and is divided into three chapters:
- A Vibrant Society: stimulating investments in high-quality education, promoting a vibrant culture, and creating an environment conducive to personal and professional growth
- A Thriving Economy: fostering the growth of the private sector, the creation of new jobs, and the promotion of foreign investments, also aiming at the development of strategic sectors such as tourism, technology, and renewable energy, thus reducing the hegemony of the oil industry
- An Ambitious Nation: making Saudi governance more efficient, dynamic and accountable through a public administration reform that includes the adoption of digital technologies to improve public services, the optimisation of resources, and the introduction of policies that are oriented towards modernity.
This transformative vision is shaped into some “giga-projects” that are under construction in NEOM, Diriyah, Qiddiya, Roshn, and along the Red Sea coast.
The institutional framework
H.E. Dr. Abdul Aziz Al-Shaibani, Saudi Arabia's Deputy Minister for Water, and Valerio De Molli, CEO and Managing Partner of TEHA Group
The participants were first welcomed by H.E. Dr. Abdul Aziz Al-Shaibani, Deputy Minister for Water, and his Delegation at the Ministry of Environment, Water and Agriculture (MEWA), where they were introduced to the current state of the Water Sector in KSA, to the portfolio of projects and programs activated by the Ministry as well as to the institutional framework defining the targets, objectives and implementation pathways to reach the Saudi Vision 2030 and beyond. Attesting to how water shall be recognized as both a basic human right and an economic enabler, the Delegations agreed to treat water as an international issue in which significative investments, public and private cooperation, and international partnerships should be encouraged and facilitated.
The workshop organized with the Ministry of Investment of Saudi Arabia (MISA) and the Saudi Water Partnership Company (SWPC) further outlined investment opportunities and offered services into the water, energy and infrastructure local markets in view of the targets set out by the Saudi Vision 2030 that preview FDI to increase to 5.7% of GDP by 2030 (now at 2.8%). SWPC seven-year strategic plan represented a concrete, on-the-ground opening to become partners of local institutions enhancing public-private synergy towards a unified response to increasing water demands.
The delegation finally met with the Saudi Water Authority (SWA), the national operational and regulatory body of the entire water chain. From water production to wastewater treatment, SWA was recently established to modernize the previously too fragmented water system while encouraging the Public-Private Partnership (PPP) model in view of a doubled water capacity and renovated infrastructure planning in the upcoming seven years.
The interventions by H.E. Amb. Carlo Baldocci and Representatives from Italian Trade Agency (ICE) a Riyadh, SACE, WeBuild, De Nora Water Technologies, ROSHN Group and The Law Firm of Salah Al Hejailan at the Embassy of Italy in Riyadh bridged the gap on operational strategies and processes to implement in favour of improved Saudi-Italian synergies in KSA.
The private sector
Acknowledging to an increasing relevance of the private sector within the water value chain in KSA, the Delegation met with the leading companies of the Saudi water sector. At ACWA Power, water security, affordability and expansion of operations all the while leveraging sustainability were the focal points of discussion. At Miahona, the Executive Team showcased the portfolio of advanced projects that will lead the strategic business plan and future investments in long-term contracts and concessions, in the cross selling and upselling of existing projects and in the expansion into new verticals.
These fruitful exchanges of best practices and perspectives paved the way towards recommendations and renewed efforts to guarantee water as a basic human right and economic enabler, and synergetic instances along all business sectors as encouraged by the Saudi Italian Business Council.
Meetings with ACWA Power (left) and Miahona (right)
NEOM: Made to Change
One of the highlights of the trip was an exclusive site visit to NEOM, a visionary project that aims to transform Saudi Arabia into a global hub of innovation and sustainability. Located in the north-west of the country, along the Red Sea coast, NEOM will be a state-of-the-art “smart city”, powered by renewable energy and developed with low environmental impact design.
NEOM is the land of the future where the greatest minds and best talents are empowered to embody pioneering ideas and exceed boundaries in a world inspired by imagination.
Throughout this tour, that is currently accessible to few foreign delegations, we have explored:
- THE LINE: a project of a roadless, carbon-neutral and “linear” city, which will stretch on a 170km line from the NEOM mountains to the Red Sea. Only 200 metres wide and 500 metres high, THE LINE will be home to 9 million people and will be powered entirely by renewable energy. The city will be designed to ensure that all essential services are accessible within a five-minute walk, and will include a high-speed public transport system that will make it possible to cross the entire city in just 20 minutes.
- Oxagon: a reimagined industrial city designed to serve as an advanced industrial centre. Located on the Red Sea coast, close to global trade routes, Oxagon will integrate Industry 4.0 with circular economy principles to create a clean and sustainable manufacturing ecosystem. The city will be powered by renewable energy and offer a dynamic environment for research and development, with a state-of-the-art port connecting the region to international markets
- Oxagon - Duba Desalination Plant: a facility located at Oxagon, designed to address the growing demand for drinking water in Saudi Arabia, and especially in NEOM.
Presentations by NEOM Deputy CEO Office, NEOM Investment Fund (NIF), OXAGON and ENOWA Water all attested to the ambitious yet clear-sighted vision of NEOM as a sustainable, innovative and advanced Region mirroring the expectations of an entire country.
Saudi Arabia's relevance in the sustainable management of water resources and smart buildings
Saudi Arabia stands out as a global leader in sustainable water management, thanks to significant investments in advanced technologies, particularly desalination. It is the first country in the world in terms of contracted desalinated water capacity, with 6 billion m³ per year, representing about 15% of its global capacity. This process has not only enabled the country to cope with the effects of climate change – it currently ranks 8th in the world for water stress rate – but has also laid the foundation for the expansion of green technologies. Reverse osmosis technology, preferred for desalination, consumes significantly less energy than traditional thermal technologies, helping to make the process more sustainable.
Furthermore, Saudi Arabia is making great strides in the field of smart buildings, which are equipped with advanced technologies and intelligent systems that improve energy efficiency and resource management. These buildings are key to achieving greenhouse gas emission reduction targets, as defined in the 2015 Paris Agreement, and are an innovative response to increasing urbanisation and the need to create more sustainable living and working spaces.
The results
This Journey to Saudi Arabia has offered our delegation a privileged observatory on innovative and transferable solutions in the field of water management and smart cities. Meetings with Saudi authorities and key actors allowed us to collect best practices and success stories that can serve as a model for Italy and other countries. This trip also created a platform for knowledge exchange for future collaborations and highlighted opportunities for investments and partnerships between the organisations involved.
Saudi Arabia, with its Vision 2030, confirms itself as a key player on the global scene, capable of combining tradition and innovation for a sustainable and prosperous future.