Saudi Arabia to establish first ERD manufacturing facility outside US

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The specialized technology is a strategic product in the desalination industry. (SPA)
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The specialized technology is a strategic product in the desalination industry. (SPA)
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Updated 28 July 2026
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Saudi Arabia to establish first ERD manufacturing facility outside US

  • The facility will be established by Energy Recovery Inc. and will have an annual production capacity of 2,000 units

RIYADH: The Saudi Water Authority has announced the local production of energy recovery devices with the launch of the world’s first manufacturing facility of its kind outside the US.

The specialized technology is a strategic product in the desalination industry. Its manufacture in the Kingdom, scheduled to begin in the first quarter of 2027, will both strengthen the industry and improve local access to advanced technologies.

The facility will be established by Energy Recovery Inc. and will have an annual production capacity of 2,000 units, sufficient to meet the Kingdom’s estimated annual demand of approximately 1,200 units. Approximately 40 percent of its output will be exported to markets across the Gulf Cooperation Council, Africa and Asia.

ERDs 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 exceeds SR547 million, including approximately SR247 million in the Saudi market and around SR300 million across Middle East and North Africa markets, providing a strong demand base that supports sustainable production and future export growth.

The project is expected to contribute approximately SR137 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 facilitate knowledge transfer and strengthen national capabilities in advanced desalination technology manufacturing.

It is the result of efforts led by the SWA 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.