Industrial Water Gets a $500M Makeover in Jubail

A $500M recycling plant in Jubail will transform industrial water use and cut reliance on desalination by 2028

24 Feb 2026

Saudi Arabia’s industrial water sector is stepping into a new phase. A partnership between Veolia, Marafiq, Lamar, and SATORP has launched a $500 million project that promises to reshape how heavy industry sources one of its most vital inputs: water.

At the heart of the plan is a major recycling facility in Jubail Industrial City. The plant will treat about 8.8 million cubic meters of wastewater each year, cleaning complex refinery and petrochemical effluent so it can be reused inside SATORP’s operations. In a country where water scarcity is a structural reality and desalination carries a high energy cost, that shift carries weight.

Construction is underway, with operations expected to begin in 2028 under a 30 year operations and maintenance agreement. That long horizon signals confidence in both the technology and the demand for recycled industrial water. It also reflects how water reuse is moving from pilot projects to core infrastructure.

Saudi Arabia remains one of the world’s largest producers of desalinated water, but policymakers have steadily pushed treated wastewater reuse as part of a broader sustainability drive. Industrial scale recycling eases pressure on desalination plants, trims energy use, and strengthens water security in critical economic hubs such as Jubail.

For Marafiq, the city’s main utility provider, the facility further weaves recycled water into the backbone of local power and water systems. Lamar adds engineering and delivery muscle, while Veolia contributes advanced treatment expertise. SATORP, for its part, gains a steadier and more sustainable water supply aligned with Vision 2030 goals focused on efficiency and environmental stewardship.

Across the Gulf, industrial operators face rising pressure to cut costs and curb emissions. Water reuse is no longer a compliance box to tick. It is fast becoming a strategic asset.

If the Jubail project delivers as planned, it could serve as a template for similar investments across the region. In doing so, it may help redefine how the Middle East balances industrial growth with the careful management of its most precious resource.