Nesma Latest News

In February, leading French water company Saur visited Nesma Water & Energy (NW&E) to discuss opportunities for collaboration. The two teams considered the capabilities and expertise of their respective companies then signed an MOU to collaborate on future projects. Representatives from both companies will soon team up to analyze the large number of upcoming contracts and identify those with the greatest potential for a successful bid.  

Both delegations consisted of top executives with Nesma being represented by President Faisal Alturki, Chairman Fouad Alsherebi and NW&E CEO Mahmoud Fallatah along with NW&E’s CIO, Legal Director and PPP Financing Officer.

Saur has 90 years’ experience in the water sector and has delivered key projects in the Saudi market. 

Nesma United Industries has been awarded a SAR 39M EPC communications and digital infrastructure project at Sheybarah South Hotel #10 on Sheybarah Island in the Red Sea. The hotel consists of 73 villas constructed in pods, each affording a unique ocean and reef experience. 

The scope of work includes communications networks, audio visual, WIFI, CCTV and digital security installation. The 13-month contract, expected to finish in October, 2024 offers unique challenges due to the one-hour ferry time required to reach the island in order to bring workers and materials.

The Nesma Water & Energy consortium public-private partnership (PPP) projects have both begun commercial water production. Both projects are reverse-osmosis desalination water plants developed for the Saudi Water Partnership Company. With the commencement of production, these two projects also begin their 25-year operations and water purchase contracts.

Located in Al Rais, Al-Madinah province, the SAR 3.29B Yanbu 4 independent water plant began its commercial production ahead of schedule. This first-of-its-kind project has a daily capacity of 450,000 m3 and uses a 10MW solar power plant to provide energy efficiency. Nesma has a 30% stake in the consortium with Engie and Mowah. The EPC contractor is Doosan. 

The SAR 2.6B Jubail 3B project utilizes a 61MW solar array and was completed in just 28 months. The plant can produce around 570,000 m3 of potable water daily for the cities of Jubail and Dammam. Nesma also has a 30% stake in this consortium with Engie and Al-Ajlan working with EPC contractors Acciona, Sepco III and Power Construction Corp.

The Landscaping Division (LSD) of Nesma United Industries was awarded two contracts totaling over SAR 63 million for the re-greening of NEOM. For both contracts, the LSD collaborated with the NEOM Environment Department to design the re-greening plan and irrigation systems. NEOM provided the plants and trees, all native to Saudi Arabia.

The total scope of work for the contracts includes the installation of irrigation systems, the planting of two million trees, shrubs and ground-cover plants and two 12-month operations & maintenance agreements (O&M).

A stand-alone drip irrigation system sourcing its water from Al Bedaa, is currently under construction. The final O&M phase begins with the completion of construction, scheduled for May, 2024.

NEOM is the Kingdom’s futuristic city set to encompass many of the goals and values of the Kingdom’s Vision 2030.

Nesma Security has won a SAR 46 million contract with the Rua AlMadinah company. The three-year contract for this Public Investment Fund project requires securing access to the project along with its assets and involves the installation of security systems. This project will provide over 100 jobs for Saudis.

The contract was signed during the Industry & Local Content Medinah Forum, which was sponsored by Nesma Security and held under the patronage of his Royal Highness Prince Saud bin Khalid, Deputy Governor of the Madinah province.

The Rua AlMadinah project is designed to rehabilitate parts of the city, add over 47,000 hotel rooms, increase green spaces and provide modern transportation solutions all to enhance the pilgrim experience in the holy city. By 2030, the city should be able to accommodate up to 30 million Umrah visitors.

Nesma Infrastructure & Technology (NIT) has three projects to announce. Two of the projects provide crucial electric infrastructure to facilitate the Kingdom’s 2030 development goals. The third is a critical security contract for NEOM.

NIT’s proven track record with infrastructure has garnered the company another contract with the Saudi Electricity Company. This SAR 300 million contract is to build a state-of-the-art 132 kV power transfer station on Farasan Island, providing a transformative advancement for the island’s power capabilities to enable future growth and grid stability. Farasan Island is located in the Red Sea off the southern coast of Saudi Arabia.

NIT was represented by Chairman Fouad Alsherebi at the launch of the Aseer province’s 2nd Industrial City. The event was organized by Modon under the patronage of HRH Prince Turki bin Talal Al Saud, Governor of Aseer, and was attended by HE Minister of Industry & Mineral Resources Bandar Alkhorayef. At the event, Chairman Alsherebi signed an infrastructure contract with Modon, the Saudi Authority for Industrial Cities & Technology Zones. NIT’s 30-month contract, worth SAR 125 million, is to construct a substation that will be located in Abha and support the 2nd Industrial City.

NIT has a contract with NEOM to operate and maintain all of the area security systems. The company will also supply spare parts as needed. Valued at around SAR 50 million, this three-year, renewable contract was signed in August 2023. The contract will create numerous Saudi jobs for engineers, contract managers, project managers and others to maintain the security systems including radar, digital networks, CCTV, firewalls and more.

In October 2023, Nesma United Industries (NUI) completed a SAR 18 million, 13-month contract for the operation and maintenance of the award-winning, 18-hole Sindalah Island Golf Course, a course which the company constructed itself in 2021-2022. The scope of work for this project was executed by NUI’s Landscaping Division and entailed the provision of water for the golf course, in addition to maintenance of the irrigation and drainage system, fairways, pathways and landscaping. In order to provide irrigation water, the company had to haul it from the mainland to supply the irrigation tanks.

Spacemaker, a subsidiary of Nesma United Industries, has won contracts to install bathroom pods at luxury villas located on Shura Island, part of the Red Sea development project. The Shura Island Program 4 Golf Estate will be fashioned with an 18-hole golf course, practice facilities and clubhouse. Integrated into the design are 75 villas with luxury amenities. Spacemaker will supply high-end bathroom units for each villa, a total of 400 pods, with marble and other high-quality finishes along with the associated  mechanical, electrical and plumbing (MEP) work. The SAR 61.8M project is due in April 2024. Spacemaker will install similar bathroom pods for Hotel Central 3 (The Reef), an exclusive hotel and spa on Shura Island with 150 guest accommodations ranging from rooms, to suites, to villas each with a view over the swimming lagoon or the beach. This SAR 49.4M contract due in June 2024, calls for an additional 204 Spacemaker bathroom pods with high-end finishes along with the MEP work.

Nesma Infrastructure & Technology signed a contract with NEOM valued at around SAR 50 million to install Sindalah’s public safety systems. The scope of work covers the design, supply, installation, operation and maintenance of comprehensive security systems, including CCTV cameras, radar and more. Delivery of the project is anticipated for June 2024. Billed on its website as “a place where enhanced nature meets responsible design, advanced technology and inspirational architecture,” Sindalah is set to be a luxury island resort destination with golfing, wellness spas, yachting and exclusive retail.

The Nesma Water and Energy Al Zaidi Water Network project was completed and closed in October, 2023. The scope of work was to deliver two 50,000 m3 carbon steel tanks, excavate and backfill 190,000 m3, complete 59,000 meters of pipe work, apply asphalt on a guard house building, relocate existing services and more. Upon delivery of the project, National Water Company praised its high quality.   

Nesma Co. and CJ Logistics have announced the signing of a memorandum of understanding (MOU). Signed at CJ Logistic’s headquarters in Seoul's Jongno district, the agreement will see both companies actively exploring joint business opportunities and prioritizing each other in the pursuit of new ventures in Saudi Arabia.

CJ Logistics is currently establishing a Global Distribution Center in the Middle East, expected to be operational next year, to manage international shipments for the online retailer iHerb. Kang Byung-koo, the head of CJ Logistics’ Global Business Division, expressed optimism about the partnership, saying that through cooperation with Nesma Co., they aim to expand their influence in the Middle Eastern logistics market.

The PPA is for the Al Henakiyah project and will buy electricity at the competitive price of 0.0168420 USD p/kwh (6.31575 halalas). At a capacity of 1100 MW, this solar PV plant can power over 190,000 residential units annually.
The project is part of the National Renewable Energy program, an important component of Vision 2030 aiming to have renewable energy make up 50% of the country’s power mix, support a sustainable economy and reduce carbon dioxide emissions.

On November 2nd, 2023, Nesma Infrastructure and Technology (NIT) signed a major strategic package with the Saudi Electricity Company (SEC) valued at over SAR 1.3 billion to construct and deliver 16 high-voltage transmission substations to support the ongoing rapid development in the eastern region of the Kingdom.

The scope of work for these fast-track contracts includes the engineering, procurement, construction, testing & commissioning and energization of the transmission substations along with their connection to the Saudi Arabian national grid, with an approximate delivery of 16 months.The substations will be built on a lump sum turnkey basis under the Network Reinforcement Program for Big Cities to benefit existing cities in the eastern region and facilitate their future growth.

Nesma Infrastructure & Technology (NIT) has won two additional contracts with the Saudi Electricity Company valued at over SAR 210 million to support the expansion of Makkah’s housing projects and to establish a link in the north of the Al Madinah Al-Munawwarah Province.

The scope of work on this lump sum turnkey project includes the engineering, procurement, construction, testing and commissioning of the transmission substation along with its connection to the national electrical grid through an underground cable. The project is to be delivered in approximately 16 months.

The latest contract for Nesma Security is to provide security at the AlWadi project in the Abha Valley, one of Saudi Arabia’s newest giga-projects. The two-year contract will employ 70 Saudi security guards. AlWadi, the flagship project born from the Kingdom’s Aseer Development strategy in the “Arabian Highlands,” is expected to contribute over SAR 19 billion to the economy and create thousands of Saudi jobs. Informed by the local architectural style and cultural heritage, the development aligns with Saudi Arabia’s National Tourism Strategy and will feature luxury hotels, modern housing options, waterfront parks and entertainment all with a focus on sustainability.

The Makkah Bus project, being fulfilled by Modern Bus, has conducted a successful trial period which began in 2022 and concluded this month. During the trial period, 100 million riders benefited from the new, modern bus service which runs throughout Makkah with over 400 buses, along 12 routes and 438 bus stops. Beginning November 1st, 2023, under the slogan, “Together on the Path,” Modern Bus is launching its regular service in Makkah with affordable tickets costing four riyals at the regular price and special priced tickets available for various customer groups. Tickets can be purchased through the app, on the website, or from ticket vending machines available throughout the city.