Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Saudi Arabia suspends $2B sale of desalination plant

Saudi Arabia suspends $2B sale of desalination plant

The disruption, blamed on the coronavirus pandemic, is seen as a setback to the kingdom’s privatisation plans.
Saudi Arabia has halted the sale of one of the world’s biggest water plants, which had attracted interest from investors including France’s Engie SA, in a setback for the kingdom’s privatization plans.

The Ras Al Khair desalination and power facility on Saudi Arabia’s east coast had cost more than $7bn to build. The government, which had been hoping to accelerate asset sales this year, blamed disruptions caused by the coronavirus pandemic.

Saudi Arabia was looking to raise about $2bn by selling a 60% stake, two people familiar with the matter told Bloomberg, asking not to be identified as the information is private.

Potential bidders considered the plant’s age and use of outdated technology unappealing, said the people. Its poor environmental credentials were another deterrent, they said.

“One of the main reasons for the cancellation of Ras Al Khair was the economic conditions resulting from the pandemic and its effect on transactions of this size,” a spokesman for the country’s National Centre for Privatization said on Monday.

Bids from investors showed the deal would make “a limited contribution” to the government, he said, adding that officials will continue with other public-private partnerships.

The kingdom aims to raise about $38bn over the next four years through privatizations, Finance Minister Mohammed Al Jadaan told the Financial Times in May. Previous targets for such revenue-raising have been missed.

The Ras Al Khair sale has been in the works since at least 2017, when BNP Paribas was appointed as financial adviser. The country shortlisted bidders earlier this year. As well as Engie, they included JERA Co. and Marubeni Corp. of Japan, India’s NTPC Ltd. and Riyadh-based Acwa Power.

The winner was supposed to acquire 60% of the facility, while also managing and operating it. Saudi Arabia, much of which is desert, is the world’s biggest consumer of desalinated water.

The plant serves the capital of Riyadh and eastern parts of the kingdom. It produces 1.05 million cubic meters of desalinated water per day and 2.65 gigawatts of power.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×