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MENA Water Market: Major investments in MENA
water
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The MENA
region is facing a water resourcing challenge, the seriousness of which is
unmatched in any other region of the world. Water plays an exceedingly
important role in this naturally extremely dry region. It is a precious
resource, as the water supply for the majority of the region is dependent on
limited groundwater aquifers, from which water must be pumped. The level of
available renewable water in the region is one fifth of what the rest of the
world enjoys on a per capita basis. At the same time the population of the
region is growing 55% more quickly than the population in the rest of the
world. Per capita water availability will fall by half by 2050, with serious
consequences for the region’s already-stressed aquifers and natural
hydrological systems. As the region’s economies and population structures
change over the next few decades, demands for water supply and irrigation
services will change accordingly, as will the need to address industrial and
urban pollution. Some 60% of the region’s water flows across international
borders, further complicating the resource management challenge. This will be
compounded if rainfall patterns, as predicted, shift as a result of climate
change. The threat of water scarcity ensures that investment in developing
freshwater supply is an urgent priority across the region.
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Middle Eastern countries will invest US$ 117 billion in the next nine to ten
years in the water sector. The MENA region is expected to invest US$ 30 billion
in desalination projects by 2015, having more than 60% of the world’s
desalination plants operating on its soil, this will lead the industry towards
astronomical growth. Saudi Arabia, the largest market for water and wastewater
in the region, will invest US$ 28 billion over the next 10 years, of which
approximately US$ 6 billion will be allocated for building new desalination
water plants.
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During the period from 2007 to 2016, the total water market
value per year will increase differently across countries in the MENA region
according to the Global Water Market 2008 report:
Bahrain will witness an increase from $310 M to $584.5 M / year (6.5%).
Egypt will witness an increase from $1,352 M to $3,489.9 M / year (9.9%).
Iran will witness an increase from $1,202.8 M to $2,637.8 M / year (8.2%).
Iraq will witness an increase from $377.8 M to $453.6 M / year (1.8%).
Kuwait will witness an increase from $684.7 M to $1,313.5 M / year (6.7%).
Lebanon will witness an increase from $123.4 M to $195.4 M / year (4.7%).
Libya will witness an increase from $835.1 M to $1,959.3 M / year (8.9%).
Morocco will witness an increase from $717.9 M to $1,148.9 M / year (4.8%).
Oman will witness an increase from $343.1 M to $920.5 M / year (10.4%).
Qatar will witness an increase from $408.9 M to $906.7 M / year (8.3%).
Saudi Arabia will witness an increase from $2,445 M to $9,103 M / year (14%).
Sudan will witness an increase from $176.9 M to $312.7 M / year (5.9%).
Syria will witness an increase from $159.7 M to $374.2 M / year (8.9%).
Tunisia will witness an increase from $442.2 M to $777.4 M / year (5.8%).
Turkey will witness an increase from $1,948.7 M to $3,910.4 M / year (7.2%).
The UAE will witness an increase from $1,908.4 M to $4,113.2 M / year (8%).
The West Bank & Gaza will witness an increase from $59.7 M to $125.6 M
/year (7.7%).
Yemen will witness an increase from $93.9 M to $243.6 M / year (10%).
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The World Bank Middle East and
North Africa Region launched last March in Cairo the Regional Report on Water:
“Making the Most of Scarcity”. The report discusses how water management
solutions need to be considered as part of the wider economic policies of the
countries of the region. Despite considerable technical, policy and
institutional progress within the water sector across the region, expected
improvements in water outcomes are still limited. There are promising
initiatives across the region where people and communities are becoming more
involved in protecting the environment and improving water resources
management.
In the past 30 years, GCC countries have witnessed an accelerated
socio-economic, agricultural, and industrial development growth, which was
associated with substantial increase in water demands. To meet the escalating
requirements, the countries have made great efforts in increasing their water
supplies. Whenever possible, natural sources of water were utilized, while
additional supplies were provided by the establishment of desalination plants,
reuse of treated wastewater, and by dams construction.
Financial and economical aspects, demand management and conservation, however,
were given less emphasis. This has resulted in decreasing economic efficiency
of water production and distribution, and in less private sector participation.
Some of the GCC countries are facing critical unsustainable conditions in the
water sector, and if these conditions continue to be unresolved, they will have
serious negative impacts on development in these countries. The formulation and
implementation of medium and long-term national water strategies and plans that
are based on scientific principles and methodologies, in addition to adopting
optimal financial and economic policies will lead to a more sustainable future
for the GCC countries’ water resources, and will result in reducing the chronic
gap between supply and demand in these countries.
Saline Water Conversion Corporation, which oversees the water
sector production and distribution in Saudi Arabia, announced recently its
plans for the privatization of its water production assets worth around US$ 800
billion. Abu Dhabi Water & Electricity Authority (ADWEA) has started its
privatization program since 1997, but has extended it this year to its sewerage
treatment facilities.
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