Saudi Water Authority Announces Localization of Energy Recovery Devices Manufacturing with Establishment of First Facility of Its Kind Outside the US

 The Saudi Water Authority (SWA) has announced the local manufacturing of energy recovery devices (ERDs), one of the strategic products in the desalination industry, through the establishment of the world’s first manufacturing facility of its kind outside the United States. This specialized technology, previously manufactured exclusively in the U.S. market, will now be produced in Saudi Arabia, making the Kingdom the first country to manufacture this technology outside the United States. The initiative will strengthen the desalination industry and improve local access to advanced technologies, with production scheduled to begin in the first quarter of 2027.
 The facility will be established by Energy Recovery, Inc. with an annual production capacity of 2,000 units, sufficient to meet the Kingdom’s estimated annual demand of approximately 1,200 units, achieving local self-sufficiency. Approximately 40% of the facility’s output will be exported to markets across the Gulf Cooperation Council (GCC), Africa, and Asia.
 Energy recovery devices improve the efficiency of desalination plants while reducing energy consumption and operating costs. Local manufacturing will reduce reliance on imports, accelerate product availability to meet the needs of desalination plants, and strengthen supply chain reliability, supporting uninterrupted water production and reliable water supplies to end users.
 The market potential for this industry exceeds SAR547 million, including approximately SAR247 million in the Saudi market and around SAR300 million across Middle East and North Africa (MENA) markets, providing a strong demand base that supports sustainable production and future export growth.
 The project is expected to contribute approximately SAR137 million to Saudi Arabia’s GDP by 2033, create more than 50 direct jobs, and achieve more than 80% local content across the product’s value chain. It will also facilitate knowledge transfer and strengthen national capabilities in advanced desalination technology manufacturing.
 The project is the result of efforts led by the Saudi Water Authority in collaboration with the Ministry of Investment, the Ministry of Industry and Mineral Resources, and the Local Content and Government Procurement Authority, accelerating the completion of the requirements needed to establish the facility and transition into production.
 The project marks a shift from importing this technology to manufacturing it locally and exporting it, positioning Saudi Arabia as a regional hub for the production of energy recovery devices while strengthening supply chain security and enhancing the competitiveness of the Kingdom’s water technology industry.