[Saudi Arabia] SAR 80 Million to Restore Dammam Airport Water and Sewage Systems: Including Reverse Osmosis Facilities, 18-Month Construction Period

Key Highlights: Saudi Alkhorayef Water & Power Technologies has been awarded a 8000万 Saudi Riyals (approximately 2130万 USD) contract to rehabilitate the water and sewage infrastructure at King Fahd International Airport in Dammam, with the client being Dammam Airports Company (DACO) and a contract duration of 18 months. The scope of work covers the design, construction, supply, installation, replacement, rehabilitation, and integration of water and sewage systems, including pumps, tanks and reservoirs, Reverse Osmosis (RO) facilities, pipelines and connections, as well as electrical and instrumentation works.

I. Contract Overview: A "Small City-Scale" Water System Rehabilitation Package

According to Alkhorayef's disclosure to the Saudi Exchange (Tadawul) on 2026年9月29日, the company has been awarded a 8000万 Saudi Riyals (approximately 2130万 USD) contract by Dammam Airports Company (DACO) to rehabilitate the water and sewage infrastructure at King Fahd International Airport.

In terms of contract value, this is not an exceptionally large order; however, in terms of scope of work, its complexity far exceeds that of a single-facility project of equivalent value. The contract covers the full process of design, construction, supply, installation, replacement, rehabilitation, and integration of water and sewage systems, specifically including:

• Pumps — renewal of lifting, conveyance, and pressurization components
• Tanks and reservoirs — rehabilitation and capacity expansion of water storage and regulation
• Reverse Osmosis (RO) facilities — advanced treatment and reclaimed water production
• Pipelines and connections — replacement and connection of water and sewage networks within the plant area
• Electrical and instrumentation works — control systems and monitoring instrumentation

An airport is equivalent to a small city in terms of water usage and drainage load: domestic water for terminals, food and beverage and commercial drainage, apron and landscape irrigation, fire reserve water, and special wastewater generated by aircraft service facilities together constitute a complete yet highly decentralized water system. Rehabilitating and integrating such a system is essentially a small-scale municipal water utility renovation.

II. The Biggest Highlight: RO Facilities Becoming Standard at Airports

The most noteworthy item in the contract is that Reverse Osmosis (RO) facilities are explicitly included in the scope of work.

In the Gulf region, RO has long been primarily associated with seawater desalination and large-scale industrial water treatment scenarios. Now that it appears in the water and sewage infrastructure list for an airport, it points to a clear trend: airports are incorporating reclaimed water reuse into their standard infrastructure.

There are three driving factors behind this trend:

First, water resource costs. Municipal water supply in Gulf countries is highly dependent on seawater desalination, with unit costs far exceeding traditional freshwater sources. Treating sewage generated by the airport for landscape irrigation, toilet flushing, and cooling makeup water can directly reduce the procurement of high-priced desalinated water.

Second, ESG and green airport ratings. The international airport industry has been continuously advancing carbon and water footprint management in recent years, and the reclaimed water utilization rate has become one of the common indicators in green airport evaluation.

Third, operational resilience. Airports are critical infrastructure operating 24 小时 continuously, with extremely low tolerance for water supply interruptions. A self-built reclaimed water system can serve as a backup water source under extreme circumstances, enhancing water supply resilience.

III. 18-Month Duration: Construction Without Interrupting Operations Is the Real Challenge

The contract duration is 18 months. For airport projects, the real challenge lies not in the engineering volume, but in construction not affecting normal operations.

Airport water systems have several special constraints: pipeline network points are dispersed and mostly located beneath or adjacent to operational areas, requiring excavation work to be coordinated with flight operations, security boundaries, and emergency access routes; water storage and fire protection systems cannot be taken out of service for extended periods, and renovation must be switched over in phases; the commissioning period of newly built facilities such as RO requires parallel verification with existing systems.

These constraints determine that the core competitiveness of such projects is not construction capability, but engineering organization and switchover scheme design capability — how to complete system rehabilitation and integration without interrupting flights or water supply.

IV. Background: Overall Airport Expansion Driving Infrastructure Upgrades

This contract is not isolated; it is embedded in the overall airport investment plan being advanced by DACO:

• 2026年6月——DACO signed agreements worth over **12亿 Saudi Riyals (approximately 3.2亿 USD)**, covering airport infrastructure, including **a new power plant, medium-voltage distribution network**, and **upgrades to the existing power grid**
• 2026年9月——DACO appointed **WSP Middle East** (the regional branch of Canadian engineering firm WSP) to prepare the airport expansion master plan
• Capacity target——The expansion aims to **increase annual passenger throughput capacity to over 1930万 million by 2030年**, with a long-term target of **3200万 million passengers**

From power plants and power grids to water and wastewater systems, DACO's investment sequence reveals a clear logic: first complete the underlying energy and water infrastructure, then accommodate the expansion of terminal areas and capacity. This "infrastructure-first" rhythm has become a common pattern in large-scale hub expansions across the Gulf region.

V. Middle East Water Market: Focus Shifting from "Build" to "Maintain"

Placing this contract in the context of the regional market, Alkhorayef's consecutive moves are more representative. The company's recent contracts in the Middle East market are almost entirely concentrated in the operations, maintenance, and system rehabilitation sector:

• **Dammam Airport**——Water and wastewater infrastructure rehabilitation (2026年9月, 8000万 Riyals, 18 months)
• **Riyadh**——Awarded a contract by the Royal Commission (Riyadh City) to provide O&M services for the **Treated Sewage Effluent (TSE) pipeline network and facilities** (2026年4月)
• **Al Khobar**——Awarded a **three-year** contract by the Saudi National Water Company (NWC) to provide O&M services for water and wastewater treatment facilities in Al Khobar, Eastern Province (2026年8月)

Concurrent regional developments also include: Riyadh Al Haer Independent Sewage Treatment Plant (ISTP) with an investment of 18亿 Riyals (approximately 4.79亿 USD), expected to be operational before the end of 2026年; Saudi Water Partnership Company (SWPC) has already prequalified more than 60 developers through the second round of Independent Water Projects (IWP) and Independent Sewage Treatment Plants (ISTP).

These signals point to the same conclusion: the incremental focus of the Middle East water market is shifting from EPC construction to operations and maintenance lasting 10 to 20年. New-build projects are still advancing, but the efficient operation of existing assets is becoming a more stable and longer-term revenue source.

VI. Implications for Chinese Water Enterprises

• O&M capability is scarcer than construction capability——Chinese water enterprises already possess strong competitiveness in the EPC segment, but securing long-term O&M contracts depends on localized teams, spare parts systems, and compliance records—this is the next threshold for going global
• "Small city-level" scenarios such as airports and industrial parks deserve attention——Such owners have comprehensive needs, strong payment capacity, clear decision-making chains, and are often tied to overall expansion plans, making them quality entry points for penetrating regional markets
• RO and reclaimed water systems are standard incremental additions——In new-build and retrofit projects across the Gulf region, reuse facilities are shifting from optional to mandatory, and the combined demand for membrane systems, advanced treatment, and pipeline network integration will continue to be released
• Focus on "rehabilitation + integration" contracts——Compared to new construction, the rehabilitation and integration of existing systems demands higher diagnostic capabilities and switching scheme design, and typically offers better profit margins

From seawater desalination to wastewater reuse, from new-build EPC to long-term O&M, the Middle East water market is completing a structural shift. The 2130万 USD airport contract is not large, but it clearly signals the direction of this shift.

About TIANYI TECH

Hong Kong TIANYI Limited (TIANYI LIMITED) focuses on industrial water treatment and water resource reuse. Centered on three core products—Industrial Wastewater Treatment AI Agent, Industrial Water Reuse Optimization System, and Industrial Water System Digital Twin—the company provides enterprises with full-chain services from water quality diagnosis and process optimization to intelligent operations, helping clients achieve stable compliance and cost reduction with efficiency improvement in complex scenarios such as airports, industrial parks, and industrial cities.

Contact us: +852 66162262 ｜ info@tianyitech.hk