MENA’s Growing Water Sector
The Middle East and North Africa is considered the most water-scarce region in the world where 83% of the population is exposed to extremely high water stress. The region has the world’s lowest average annual water availability per person, equal to 480 cubic meters in 2024, less than 10% the global average, and below the international definition of water scarcity.
Addressing the water scarcity and improving water management in the region will be immensely important as the demand for water rises due to population and economic growth, increased urbanization and the greater impacts of climate change, which particularly affect water resources. According to the World Bank report, the water demand gap in MENA will increase dramatically by 2050 to around 200 cubic kilometers per year.
Most countries in MENA have witnessed significant shifts in desalination to mitigate the destabilizing effects of water scarcity. Governments in the region are investing heavily in water infrastructure to support long term water security and economic growth. The collective value of contracts awarded soared to nearly $21 billion in 2024.
The region accounts for over $150 billion of water schemes – the largest share in the global pipeline, reflecting the region’s increasing dependence on the desalination of seawater, and the recycling of wastewater, for its supply of potable water.
Saudi Arabia and the UAE have positioned themselves as the regional leaders in water projects. Saudi Arabia is currently the world's largest producer of desalinated water with its extensive desalination infrastructure; while the UAE is recognized for its innovative approaches to water sustainability.
Saudi Arabia’s desalinated seawater production now comprises 50% of the country’s distributed water supply. Private utility developers are expected to play a significant role in the Kingdom where numerous desalination, wastewater treatment, water transportation, and storage projects are in the planning stages. Tenders for 12 projects are expected to be issued over a two-year period, until 2026 with a total combined capacity of 2.4 million cubic metres a day (cm/d).
The UAE, the second-largest market in the region, witnessed a substantial surge of contracts awarded driven by independent water production projects and major water infrastructure initiatives. Abu Dhabi-based Taqa Water Solutions has allocated AED 10bn ($2.72bn) for some 80 water infrastructure-related projects in Abu Dhabi, both greenfield and brownfield.
To keep pace with demand growth and sustainable water sources; the use of advanced water technologies has become a critical development in the region. Neom, Saudi Arabia's futuristic city, is building an ambitious smart water infrastructure project that integrates energy-efficient water management with advanced desalination technology powered entirely by renewable energy. The UAE’s Water Security Strategy 2036 seeks to guarantee sustainable water access under all conditions.
The efficient water management with new technologies will take on greater importance. These innovations in water sector will remain a focal point for a sustainable future going forward.
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