Saudi Arabia localizes energy recovery equipment manufacturing, with production to begin in 2027

The Saudi Water Authority announced the localization of the energy recovery device manufacturing industry, a strategic product in the water desalination sector, by establishing the world’s first such factory outside the United States in the Kingdom, with production set to begin in the first quarter of 2027.

This move to transfer this specialized technology, previously confined to the U.S. market, to Saudi Arabia supports the desalination industry and enhances local access to advanced technologies.

Energy Recovery is building the facility in the Kingdom with an annual production capacity of 2,000 units, covering the estimated local demand of approximately 1,200 units per year, achieving local self-sufficiency, and directing 40% of production to Gulf Cooperation Council (GCC) countries, Africa, and Asia.

The market opportunities for this industry exceed $145.9 million, including approximately $65.88 million in the Saudi market and around $80.02 million in Middle East and North Africa (MENA) markets, providing a demand base that supports production sustainability and export expansion.

The project is expected to contribute approximately $36.5 million to the Gross Domestic Product (GDP) by 2033, create more than 50 direct jobs, achieve a localization rate in the product’s value chain exceeding 80%, and facilitate knowledge transfer and the development of national specialized capabilities in desalination technology manufacturing.