Saudi Water Market Sees Another Major Chinese Win
United Water (603291.SH), a Chinese water utility, has secured its second major long-term operation and maintenance (O&M) contract in Saudi Arabia within eight months. The company announced on August 25, 2026, that a consortium led by United Water won Package 11 of Saudi Arabia’s municipal wastewater treatment long-term O&M tenders. The project’s estimated total revenue is about RMB 2.05 billion (approximately USD 290 million). The win follows Package 10, awarded in January 2026, and strategically positions United Water as a key international operator in the Kingdom’s evolving water sector.
Inside LTOM Package 11
Package 11 is part of the Long-Term Operation and Maintenance (LTOM) framework led by the Saudi National Water Company (NWC). It covers five municipal wastewater treatment plants across the Madinah region: Al Khalil STP-1, Al Khalil STP-2, Bader STP, Al Mahad STP, and Yanbu STP. The combined designed capacity is 442,000 cubic meters per day, of which 424,000 cubic meters per day is existing capacity and 18,000 cubic meters per day comes from upgrades and capacity expansion.
The scope includes rehabilitation of the existing plants, efficiency improvements, capacity expansion, construction of advanced sludge treatment facilities, and full-cycle O&M for 15 years. The operator must ensure effluent quality, sludge handling, and environmental performance meet national standards. The project company is 100% owned by the winning consortium. NWC will pay service fees through capacity-based and output-based revenue mechanisms, a structure designed to align operator incentives with performance outcomes.
Strategic Implications for Water Operators
This LTOM model is a departure from traditional engineering-procurement-construction (EPC) contracts. It transfers long-term operational risk to the private partner and requires deep technical expertise in process optimization, asset lifecycle management, and resource recovery. For international operators, the model offers predictable, multi-year revenue streams — but demands robust filtration and treatment know-how to maintain compliance.
For plant operators, the performance-based fee structure means that even small inefficiencies in pre-treatment or solids separation can directly affect profitability. Cartridge and bag filtration systems, such as Spuretek’s large-flow pleated cartridges (SHF series) and industrial filter bags (SFB series), can help reduce downstream fouling, extend membrane life, and lower chemical cleaning frequency. In string-wound and melt-blown formats, Spuretek’s SSW and SMB lines also support reliable suspended-solids removal in wastewater and water reclamation applications.
United Water’s Saudi Growth Path
United Water’s expansion in Saudi Arabia has been deliberate. In January 2025, the company’s board approved the establishment of a wholly-owned overseas subsidiary in Saudi Arabia with initial capital of SAR 50,000 (about RMB 95,000). By December 2025, the subsidiary — United Water Service Company — was registered with a business scope covering the full water industry chain, including treatment, network construction, and O&M.
In January 2026, United Water won Package 10 (northern region) of the same national LTOM program. That project has a total treatment capacity of 337,800 cubic meters per day and an estimated 15-year total revenue of RMB 2.366 billion. With Package 11, United Water now holds O&M contracts for approximately 780,000 cubic meters per day of municipal wastewater capacity in Saudi Arabia, effectively creating a bridgehead for further expansion across the Middle East, South Asia, and Southeast Asia under China’s Belt and Road framework.
Why Saudi Arabia Is a Water Investment Hotspot
Saudi Arabia is among the most water-scarce countries in the world. Depletion of conventional fossil water resources has forced the country to diversify its supply mix toward groundwater, seawater desalination, and treated wastewater reuse. The national agenda — Vision 2030 and the National Water Strategy 2030 — prioritizes water security and allocates substantial capital to upgrade aging infrastructure.
At the same time, the government is actively privatizing water assets and inviting foreign operators to participate via market-based tenders. The LTOM model specifically targets firms with proven technical and operational strength. Key investment opportunities in the Kingdom center on four areas: recycled water utilization, sewage network expansion, desalination technology upgrades, and smart water management. These trends benefit not only large utility contractors but also specialized component suppliers, including filtration and separation technology providers.
Corporate Governance and Strategic Alignment
United Water also completed a board transition on August 24, 2026. Yu Weijing was re-elected as chairman and reappointed as president. Liu Meng was appointed executive president; Chen Qiao, James Gerard Beeson, and Chen Guoqing were appointed senior vice presidents; Xu Xingzhi was appointed vice president and board secretary; and Chen Guoqing was additionally appointed chief financial officer. The refreshed governance structure is intended to support the company’s accelerated internationalization strategy.
Filtration Expertise for Long-Term O&M Success
As more international operators enter Saudi Arabia’s performance-based water market, the reliability of pre-treatment and polishing filtration becomes critical. Spuretek Filtration Co., Ltd., a Wuhan-based manufacturer, supplies a comprehensive range of coarse-filtration cartridges and filter bags that support wastewater, reused water, and desalination pre-treatment processes. For high-flow applications, Spuretek’s SHF pleated cartridges reduce footprint and energy consumption. For operators managing sludge dewatering filtrate or tertiary polishing, Spuretek’s SSW string-wound and SMB melt-blown cartridges provide cost-effective depth filtration. The company also offers stainless-steel pleated cartridges (SSSP) for demanding conditions.
Filtration system selection affects membrane protection, equipment uptime, and operating costs over a 15-year O&M horizon. Utilities entering or scaling up in the Saudi market should evaluate the total cost of filtration ownership, not just initial CAPEX.
For independent filtration advice and product selection support, contact Spuretek Filtration Co., Ltd. at https://www.spuretek.com.
Source: H2O-China — https://www.h2o-china.com/news/364561.html
Based on reporting by H2O-China. Original analysis and product perspective by Spuretek Filtration Co., Ltd.. Read the source.