Almar Water Solutions has won a $940 million contract to expand water treatment capacity for Saudi Aramco’s Zuluf offshore oil project, a deal that underscores how the kingdom is pairing energy output growth with heavy infrastructure spending to protect long-term production.
Almar Water wins $940 million Zuluf contract
The project is structured under a build-own-operate-transfer concession that runs until 2050, giving Almar a long-duration revenue stream while tying the plant’s economics to one of Aramco’s strategic crude developments. For Saudi Arabia, the investment supports upstream oil operations that depend on large volumes of treated water, a reminder that water infrastructure is now a direct enabler of hydrocarbon supply.
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For investors, the award highlights the value of recurring, contract-backed infrastructure businesses in the Gulf, where state-backed projects can lock in cash flows for decades. It also points to a wider regional push to harden critical energy assets after repeated attacks on Saudi oil infrastructure and shipping routes have raised the strategic premium on resilience.
The deal fits into a broader trend in the Middle East as energy producers spend not only on wells and export terminals but on the utilities that keep them running, from desalination and treatment to power and logistics. That makes companies with operating expertise in water and industrial concessions more relevant to both the Saudi buildout and the investment case for long-term infrastructure owners.
Shares of related water and infrastructure names have been mixed recently, but the Zuluf award adds another high-value reference point for the sector’s order books. The key catalyst now is execution: investors will watch whether Almar can translate the headline contract into timely construction progress, stable margins and additional awards in Saudi Arabia and the wider Gulf.
| Entity | Gains | Losses |
|---|---|---|
| Almar Water Solutions | ▲$940 million backlog | ▼Execution risk |
| Saudi Aramco | ▲Zuluf water capacity | ▼Upfront project spending |
| Long-term infrastructure investors | ▲2050 cash-flow visibility | ▼Near-term capital intensity |
| Rival water contractors | ▲Sector validation | ▼Missed award opportunity |
