Wetlands are among the most significant ecosystems on the planet. Therefore, this review paper aims to provide a comprehensive overview of wetlands in Saudi Arabia’s arid climate, highlighting the environmental risks that affect the ecosystem of Al-Asfar Lake. The majority of Saudi Arabia is characterised by dry terrain. However, there are several tiny and large natural wetlands and constructed wetlands located along the Red Sea and Arabian Gulf coastlines. Al-Asfar Lake is situated prominently in the eastern region of Saudi Arabia. This article summarises the analytical aspects of the available publications on wetlands in Saudi Arabia, particularly taking Al-Asfar Lake as a case study. The review consequently revealed that water quality and environmental hazards were the main concerns of Al-Asfar Lake’s ecosystem and biodiversity. This review also highlights the necessity of conducting thorough investigations of wetlands in Saudi Arabia to describe and identify their locations, coverage area, land-use system, and important flora and fauna. Such investigations can include evaluating the lake’s hydrology, water quality, and the conditions of the flora and fauna. Modelling approaches using wetland eco-hydrological models can be employed considering potential future climate scenarios. The outcomes of such investigations may guarantee the wetland’s sustainability for a long time.