Mena water delivers exceptional growth
26 January 2024
Click here for MEED's latest water developer ranking
As a water-scarce hotspot facing geopolitical tensions and climate change, many jurisdictions in the Middle East and North Africa (Mena) region have long recognised that water is an important security concern. It requires sustained investments, especially in light of the region’s long-term economic diversification agendas.
This fact supports the major upturn in spending in 2023, when the total value of awarded contracts within the sector climbed to $20bn – up 74 per cent compared with the $11.5bn-worth of contracts awarded the previous year.
Prior to this, the region awarded the highest value of contracts for a year in 2021, at $14.5bn.
Saudi Arabia registered the largest share, accounting for over 56 per cent, or about $11bn, of the contracts awarded in 2023. This was 69 per cent more than in 2022.
The value of contracts awarded in the UAE, the region’s second-largest market, grew by more than 250 per cent to reach approximately $4.9bn in 2023. This was driven by the awards of three independent water producer (IWP) projects, as well as major water pipeline, sewerage and storm water packages.
All the remaining Mena countries recorded higher values of awarded contracts in 2023 compared to 2022, except for Qatar, which declined by 72 per cent; Jordan, which fell 58 per cent; and Algeria, with a drop of 57 per cent.
Water transmission and distribution network projects continued to represent a significant share of the total awarded contracts, contributing 37 per cent, or $7.7bn, in 2023. This was 1 per cent higher than in the previous year.
A total of $6.8bn-worth of water treatment plant projects was awarded in 2023, in a 180 per cent increase on the value of awarded contracts in 2022. The value of awarded water desalination contracts also grew from $1.8bn to close to $4bn in 2023.
Future opportunities
An estimated $77.5bn-worth of projects across the five Mena water sub-sectors are in the pre-execution phase. This is 29 per cent higher compared to the value of projects on the pipeline a year earlier.
This means that major opportunities remain for both utility developers and engineering, procurement and construction (EPC) contractors looking to win more work within the sector.
As in previous years, Saudi Arabia commands a significant share of future opportunities, with planned and unawarded projects worth close to $30bn. This is expected to grow as the kingdom ramps up capacity to meet its 2030 target to reduce reliance on ground and surface water and enhances its storage capacity – and as the execution of gigaprojects such as Neom gathers pace.
Private utility developers are expected to take a more prominent role as the pipeline of independent water desalination, sewage treatment, water transmission and storage facilities being planned in Saudi Arabia and beyond grows.
This does not preclude growth in EPC projects, with the Saline Water Conversion Company (SWCC) and National Water Company ramping up their procurement activities, and state water offtaker Saudi Water Partnership Company focusing on independent water infrastructure projects.
Beyond the GCC
Last year, Morocco awarded its first major independent water producer (IWP) contract. Spain’s Acciona, in consortium with local firms Afriquia Gaz and Green of Africa, won the $875m contract to develop the Grand Casablanca seawater reverse osmosis (SWRO) plant. The 30-year, build-operate- transfer project will have a design capacity of 548,000 cubic metres a day.
Morocco’s National Office of Electricity & Drinking Water (Onee) is advancing plans for the development of a new IWP following the Grand Casablanca project. To be located in Morocco’s Oriental region, the project will cater to the cities of Nador, Oujda, Berkane, Taourirt and Saidia.
In December, Jordan’s Water & Irrigation Ministry received a single bid for the multibillion-dollar Aqaba-Amman water conveyance and desalination project. If things go as planned, the sole bidder is expected to be awarded the estimated $2bn-$3.5bn contract this year. There is also an expectation that the first batch of Egypt’s planned renewable energy-powered SWRO plants will be tendered over the next 12-24 months.
Sewerage infrastructure
Dubai and Qatar offer some of the most lucrative sewerage tunnel and infrastructure projects over the short to medium term. This year, Qatar’s Public Works Authority (Asghal) is expected to tender four packages of the South of Wakrah and New District of Doha pumping station and outfall scheme. The packages have an estimated value of $1bn-$2bn.
Last year, Dubai Municipality revived its strategic sewerage tunnels project, which is expected to require an investment of up to $22bn. Known as the Deep Tunnels Portfolio, it involves developing assets across Dubai and Hatta.
This includes two sets of deep tunnels terminating at two terminal pump stations located at sewage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta. The scheme also includes recycled water distribution systems connected to the STPs.
For the foreseeable future, water transmission and distribution projects will continue to be a priority in the region. They will remain the largest water sub-sector as utility companies expand their networks to accommodate new residential, commercial and industrial developments; link new desalination and treatment plants to their networks; and replace ageing infrastructure to curb water losses.
Register for MEED's guest program now to access this article.
Exclusive from Meed
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Oman’s Barka 5 IWP solar plant begins full operations1 May 2026
Spain’s GS Inima has begun permanent operations at the solar photovoltaic (PV) plant serving the Barka 5 independent water project (IWP) in Oman.
The solar facility is the third of its kind in Oman to power a large-scale desalination facility through a self-supply model.
In a statement, GS Inima said it will provide up to 50% of the desalination plant’s electricity needs during daytime operations, improving efficiency and reducing reliance on external power sources.
The PV plant has an installed capacity of 6.5MWp. It is designed to optimise energy consumption at the adjacent reverse osmosis desalination facility.
The project was developed by GS Inima in collaboration with local firm Nafath Renewable Energy as the engineering, procurement and construction (EPC) contractor. China-based OCA Global provided owner’s engineering services.
The Barka 5 IWP has a desalination capacity of approximately 100,000 cubic metres a day.
GS Inima won the contract to develop the Barka 5 IWP project in November 2020. As previously reported, financial close was reached in 2022, and construction of the facility was completed in 2024.
The self-supply solar PV plant is equipped with 10,504 bifacial modules supplied by China’s Jinko Solar. These are mounted on fixed structures provided by Mibet Energy.
Power is managed through 18 Sungrow inverters with a total capacity of 320kWac each, while electricity is fed into the desalination plant through an 11kV connection.
The integration of solar power supports the efficiency of the Barka 5 facility, which has an energy consumption rate of 2.7kWh per cubic metre.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16645971/main.jpg -
Qiddiya receives high-speed rail PPP prequalifications1 May 2026
Register for MEED’s 14-day trial access
Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, received prequalification statements from firms on 30 April for the public-private partnership (PPP) package of the Qiddiya high-speed rail project in Riyadh.
This follows the submission of prequalification statements for the engineering, procurement, construction and financing (EPCF) package on 16 April, as reported by MEED.
The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.
The Qiddiya high-speed rail project, also known as Q-Express, will connect King Salman International airport and the King Abdullah Financial District (KAFD) with Qiddiya City. The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.
The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.
The second phase will start from a development known as the North Pole and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of the city.
In November last year, MEED reported that more than 145 local and international companies had expressed interest in developing the project, including 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.
In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.
Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16641057/main.gif -
Bid deadline extensions hint at tighter project market1 May 2026
Commentary
Mark Dowdall
Power & water editorThere has been a steady run of bid deadline extensions across major power and water projects in recent weeks.
The latest is the Al-Dibdibah and Al-Shagaya solar independent power producer (IPP) plant in Kuwait, where the submission date has been moved again to 31 May, following an earlier shift from February to the end of April. Similarly, bidding for the first phase of the Al-Khairan IWPP has also been extended.
In Bahrain, bidding for the 1.2GW Sitra IWPP has been pushed back by another month to 17 May, having already been under main contract tender since last August.
Meanwhile, in Dubai, contractors have been given additional time to submit bids for both the Jebel Ali sewage treatment plant expansion and a dams rehabilitation project in Hatta.
Individually, these shifts are not unusual, and extensions are a routine part of the procurement cycle, especially with large, capital-intensive schemes.
However, amid regional tensions and increasingly complex risk profiles, stakeholders are having to weigh up how much they can absorb, whether that is performance guarantees, financing exposure or delivery risk.
For contractors and developers, this could mean looking more closely at supply chains, insurance costs and the potential for disruption. Lenders, too, are likely taking a more measured view on long-term exposure.
This caution can show up in the bid process. More internal approvals, more conservative pricing, and in some cases, perhaps a hesitation to commit altogether.
At the same time, strong pipelines across the GCC mean contractors are not short of work. Firms can afford to be selective, focusing on projects where risk and return are better aligned.
Clients, in turn, face a choice. Push ahead with more limited competition or extend and try to draw in stronger participation. Most appear to be opting for the latter.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16640998/main.jpg -
Saudi Arabia launches $2bn Jawharat Al-Arous project1 May 2026
Saudi Arabia has launched Jawharat Al-Arous, an SR8bn ($2bn) private-sector-led residential development in north Jeddah.
The scheme covers 107 million square metres and comprises 18 residential neighbourhoods planned to accommodate more than 700,000 residents. It will provide more than 80,000 residential and commercial plots.
The masterplan also includes 41 government-backed infrastructure and service zones to support large-scale urban expansion.
The project was unveiled by Mecca Region Governor Khalid Al-Faisal and will be overseen by Saud Bin Mishaal Bin Abdulaziz.
According to a recent report by real estate firm Cavendish Maxwell, Jeddah’s residential stock stood at about 1.09 million units at the end of 2025, following the completion of around 4,000 units that year.
An expanding pipeline of about 18,000 units in 2026 and 22,000 units in 2027 is expected to bring total stock to around 1.14 million units by 2027, gradually adding supply without destabilising market equilibrium.
GlobalData expects the Saudi construction industry to grow by 3.6% in real terms in 2026, supported by increased foreign direct investment (FDI) and investment in the housing and manufacturing sectors.
The residential construction sector is forecast to grow by 3.8% in real terms in 2026 and to record an average annual growth rate of 4.7% between 2027 and 2030, supported by Saudi Vision 2030’s goal of increasing homeownership from 65.4% in 2024 to 70% by 2030, including through the delivery of 600,000 homes by 2030.
MEED’s April 2026 report on Saudi Arabia includes:
> COMMENT: Risk accelerates Saudi spending shift
> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
> DOWNSTREAM: Saudi downstream projects market enters lean period
> POWER: Wind power gathers pace in Saudi Arabia
> WATER: Sharakat plan signals next phase of Saudi water expansion
> CONSTRUCTION: Saudi construction enters a period of strategic readjustment
> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure pushTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16640863/main.png -
Damage to US bases in region expected to cost more than $15bn1 May 2026
The $25bn estimate a Pentagon official gave US lawmakers on 29 April did not include the cost of repairing damage to US bases in the Middle East, and the real cost of the war is likely to be between $40bn and $50bn, according to CNN.
That would put the cost of repairing bases and replacing destroyed assets at between $15bn and $25bn.
Jules Hurst III, the Pentagon official serving as the agency’s comptroller, told the House Armed Services Committee that “most” of the $25bn he cited had been spent on munitions. Defence Secretary Pete Hegseth declined to say whether the figure included repairs to damaged US bases.
Iranian strikes across the Gulf in the early days of the war significantly damaged at least nine US military sites in 48 hours, hitting facilities in Bahrain, Kuwait, Iraq, the UAE and Qatar.
Six US servicemembers were killed in an attack on a command post in Kuwait, and 20 more were injured.
Three sources told CNN that the figure provided to the House Armed Services Committee did not include the cost of rebuilding US military installations and replacing destroyed assets.
One source said the true cost would likely be between $40bn and $50bn.
US contractors such as KBR and Fluor, as well as local firms, are likely to be among the leading contenders for contracts to repair and rebuild US bases in the region.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16638663/main.gif