Saudi-Owned Company Halts Groundwater Pumping in Arizona

State action over excessive water use leads to the cessation of operations by Fondomonte Arizona, highlighting concerns over foreign exploitation of resources.

A Saudi-owned company, Fondomonte Arizona, has ceased its groundwater pumping operations in Arizona's Butler Valley, following state action over concerns of excessive water use.
Governor Katie Hobbs and the Arizona State Land Department played key roles in ending the company's operations, emphasizing Arizona's water security and accountability for high-volume water users.
Fondomonte Arizona, a subsidiary of Saudi dairy giant Almarai Co., was utilizing the water to grow alfalfa for livestock in Saudi Arabia, pumping an estimated 5.3 billion gallons annually.
The company's lease agreements for water pumping were not renewed by the state, citing the excessive amounts of water being pumped without charge.
Other foreign-owned companies, such as the UAE-owned Al Dahra ACX Global Inc., also operate in the region, highlighting the broader issue of foreign entities tapping into Arizona's water resources.