The Saudi Water Authority (SWA) has localized energy recovery device (ERD) manufacturing through the establishment of the world’s first production facility of its kind outside the United States, strengthening Saudi Arabia’s desalination industry and expanding local access to advanced water technologies.
The facility, to be established by Energy Recovery, Inc., will produce one of the desalination sector’s key technologies, previously manufactured exclusively in the United States. Production is scheduled to begin in the first quarter of 2027, making Saudi Arabia the first country to manufacture the technology outside the US
The plant will have an annual production capacity of 2,000 units, exceeding the Kingdom’s estimated annual demand of around 1,200 units and enabling local self-sufficiency. Around 40 percent of production will be exported to Gulf Cooperation Council (GCC) countries, Africa and Asia.
Energy recovery devices improve desalination plant efficiency while reducing energy consumption and operating costs. Local production is expected to reduce reliance on imports, shorten delivery times, strengthen supply chain resilience and support uninterrupted water production.
The energy recovery industry has an estimated market potential exceeding $145.87 million (SAR547 million), including about $65.87 million (SAR247 million) in Saudi Arabia and $80 million (SAR300 million) across Middle East and North Africa (MENA) markets, providing strong demand to support sustainable production and future exports.
The project is expected to contribute about $36.53 million (SAR137 million) to Saudi Arabia’s gross domestic product by 2033, create more than 50 direct jobs and achieve more than 80 percent local content across the product’s value chain. It will also support knowledge transfer and strengthen national capabilities in advanced desalination technology manufacturing.
The initiative is the result of collaboration led by the Saudi Water Authority with the Ministry of Investment, the Ministry of Industry and Mineral Resources, and the Local Content and Government Procurement Authority to accelerate the establishment of the facility and transition to commercial production.
The energy recovery project marks Saudi Arabia’s shift from importing energy recovery devices to manufacturing and exporting them, positioning the Kingdom as a regional hub for desalination technology manufacturing while strengthening supply chain security and enhancing the competitiveness of its water technology industry.
