UAE Water Project Opportunities

Arab countries are home to 6% of the world’s population but less than 2% of renewable water supply, according to a report by the World Bank. The growing demand for water, climate change, increase in population, and the scarcity of resources has led to an even greater water shortage in the region. 

The UAE government is keenly aware of water supply issues and developed the country’s Water Security Strategy 2036, which aims to reduce demand for water resources, increase water productivity, increase water-use efficiency across all sectors, improve water quality by reducing pollution, and achieve equitable access to safe and affordable water.

During the 5th Arab Water Forum (AWF5) - Arab Water Security for Peace and Sustainable Development- held in Dubai in September 2021, the UAE announced its plans to develop three water desalination projects in Abu Dhabi, Dubai, and Umm Al Quwain to support the water sector and tackle challenges related to water scarcity. The three projects have a combined capacity of 420 million imperial gallons per day (MIGD) and will raise the water desalination capacity of the UAE to 1,590 MIGD.

The UAE investment in water infrastructures has resulted in the development of various mega-project opportunities for U.S. companies in the UAE including the Abu Dhabi National Oil Company’s (ADNOC) recently announced large-scale seawater treatment and transportation project. In 2021, ADNOC announced a competitive process to seek and select a developer to participate in the development of a large-scale seawater treatment and transmission pipeline project in the Emirate of Abu Dhabi. This $2.5 billion project is aimed to replace the current aquifer water injection systems, be a reliable source of water injection, and preserve the UAE’s natural resources by containing aquifer depletion. It will also enhance operational efficiencies and result in net reduction of carbon dioxide (CO2) emissions compared to the current injection system.

The project will include the development, financing, construction, operation, maintenance, and ownership of two standalone greenfield seawater nanofiltration plants with a combined treatment capacity of approximately 210 million imperial gallons per day, together with pumping stations and transmission pipelines to transport the treated water to onshore oilfields, requiring approximately 450 kilometers of new pipeline infrastructure. The two plants will be located at greenfield sites at Al Mirfa and Al Nouf to the west of the city of Abu Dhabi.

This significant capital project is expected to be funded through the special purpose vehicle (SPV) and executed on a build, own, operate, and transfer (BOOT) basis. The SPV will be jointly owned by ADNOC and the selected developers and investors.

For more information please contact office.abudhabi@trade.gov.