US private equity company KKR makes first Saudi investment

US company KKR has made its first investment in Saudi Arabia, backing critical water desalination infrastructure through Acwa Power.

The private equity company said it was the anchor lender in a private credit transaction in the Rabigh 3 desalination facility that supplies water to the Mecca region.

Financial details of the deal were not disclosed.

Rabigh 3 is majority-owned by Acwa Power, which provides a quarter of the country’s desalinated water capacity. Water desalination is a critical national priority under the Saudi government’s Vision 2030 programme.

“Our investment reflects KKR’s broader ambition to scale our presence across the kingdom, deepen partnerships with leading corporations and deploy capital behind essential infrastructure that contributes to long-term sustainable growth,” said Julian Barratt-Due, head of Middle East investing at KKR.

Last week Acwa Power announced it had completed the acquisition of water desalination and power generation assets in Kuwait and Bahrain from French utility company Engie.

Acwa Power’s shares closed at SAR 186, after losing more than 50 percent since January 1. The company is 44 percent owned by Saudi Arabia’s Public Investment Fund.

• Acwa Power secures funds for projects worth $14bn
• Water scarcity: The GCC’s desalination challenge
• Acwa Power bolsters clean energy portfolio