Establishing the National Water Company (NWC), was approved vide Royal Decree No M/1 January 2008. The Royal decree also approved the incorporation of NWC and its Bylaws. NWC is a fully owned by the government and will cover all parts of the Kingdom’s Water and Wastewater operations in three years.

The new company will have a capital of SR22 billion with 2.2 billion shares, each with a nominal value of SR10, and a paid-up capital of SR6.84 billion with 684.88 million shares.
The decision to setting up a separate commercial entity, NWC for water & wastewater operations is a historic one and is expected to bring about qualitative changes in water production and distribution in the country.

NWC will provide all services related to underground water sector, drinking water distribution sector and collection and treatment of sewage water on a sound commercial basis. “The company will receive all its dues, including charges for its services in the specified time from all subscribers without exception,” statement said.

All rights and properties of the state in the above sectors will be transferred to the company in phases determined by the minister of water and electricity,” the Cabinet said. “All financial and contractual commitments of the state that are related to the above sectors will also be transferred to the company in stages, The new company would replace directorates of water in cities and regions.

NWC’s activities will start from Riyadh, the largest consumer of water in the Kingdom, as the company will take over groundwater resources, sewage network and sewage treatment plants in the region. Within three months the company will move to Jeddah, then to Madinah, Greater Dammam, Makkah . These five cities account for 65 percent of water consumption in the country

The new company will have a seven-member board of directors chaired by the minister of water. It will have two members each from the Ministry of Water and Electricity, the Ministry of Finance and the private sector.