Saudi Arabia is one of the most water-scarce nations in the world, with a huge demand-supply gap, and the situation is expected to worsen due to climate change. Conventional surface water resources are limited, while nonrenewable groundwater sources are depleted. To build a more resilient and sustainable water sector, the production of non-conventional water resources, specifically desalinated seawater and treated domestic wastewater, has steadily increased in recent years. As the country lacks perennial water resources, such as rivers or water bodies, it relies mainly on nonrenewable groundwater and desalinated water to meet its daily requirements. Although the government is attempting to regulate the agricultural sector, water consumption in agriculture remains relatively high. It presents an environmental challenge due to its heavy reliance on non-renewable groundwater resources. The anticipated increase in temperature and highly uncertain changes in the rainfall patterns in Saudi Arabia could lead to greater uncertainty when attempting to develop effective water resource management plans. In this work, we review the status of the present and future of water resources and the challenges local authorities face in managing water resources amidst a changing climate in Saudi Arabia. This study employed a narrative research methodology, utilizing various databases, including Scopus, Web of Science, and Science Direct, to extract relevant articles within the subject area. This study proposes a number of recommendations and conclusions aimed at improving decision-makers’ ability to adapt to and mitigate the anticipated adverse impacts of climate change to manage scarce water resources sustainably.