UAE begins massive reverse osmosis buildup

11 April 2023

This package on the UAE's water sector also includes:

Dewa extends Hassyan IWP bid deadline

Adnoc resumes Project Wave negotiations

Sharjah issues first independent water tender

Ewec rules out solar in desalination projects

French/local team wins contract to build Mirfa 2 IWP

Adnoc selects Cobra-led team for PPP project


State utilities in the UAE are seeking to increase the share of seawater reverse osmosis (SWRO) technology in the overall capacity of their desalination plants in line with their carbon emission reduction targets and the UAE’s net-zero by 2050 goal.

This will end the domination of water production capacity by thermal desalination plants over the past decades.

The demand for additional SWRO capacity is especially evident in Abu Dhabi, where nearly half of the existing water desalination capacity will come out of contract between 2025 and 2029.

The power- and water-purchase agreements (P/WPA) for four major utility plants in Abu Dhabi, with a total combined water desalination capacity of 441 million imperial gallons a day (MIGD), will expire during this period.

Unlike the thermal power plant components of these independent water and power projects (IWPPs), which are subject to extension negotiations, the state utility Emirates Water & Electricity Company (Ewec) is inclined to dismantle all thermal desalination plants associated with these assets – or convert them into SWRO plants – upon the expiry of their contracts. This strategy aligns with its goal to halve its carbon emissions.

Over the next two to four years, Ewec envisages putting 290MIGD of SWRO capacity in place. This is in addition to the Taweelah SWRO plant’s remaining 100MIGD of capacity that is yet to enter commercial operation. Once this plant is at full capacity, it will plug in the capacity from Taweelah A2, the emirate’s first thermal IWPP, which was mothballed in 2021.

Recent SWRO projects in Abu Dhabi include the 120MIGD Mirfa 2 independent water producer (IWP) project, which France’s Engie is developing; the 70MIGD Shuweihat 4 IWPHudayriat and Saadiyat islands, which will each have a capacity of 50MIGD.

RELATED READ: Mirfa 2 award sends positive market signal

Both Mirfa 2 and Shuweihat 4 have a target commercial operation date of 2025, while the two Abu Dhabi Islands IWP projects are expected to provide replacement capacity for the Sas al-Nakhl plant, whose contract expires in 2027.

Longer term, Ewec will need to procure 494MIGD of SWRO capacity by 2036, under the base-case scenario of its 2023-29 Statement of Future Capacity Requirements.

Demand fluctuations

Demand for desalinated water in Abu Dhabi over the short term is anticipated to decrease from just under 800MIGD in 2022 to 764MIGD this year. This is due to reduced exports to Etihad Water & Electricity (Ewe), which is commissioning its first 150MIGD IWP in Umm al-Quwain.

Demand is expected to grow slowly between 2023 and 2029, when it is projected to reach 805MIGD. This is just slightly higher than in 2022, primarily due to recycled water replacing desalinated water as the dominant irrigation supply source.

In Dubai, the procurement process is under way for the 120MIGD Hassyan IWP. The contract for the emirate’s first IWP was tendered before and awarded in 2020, but the project stalled and Dewa relaunched the tender in 2022.

Four teams led by Engie, Saudi Arabia’s Acwa Power, Spain/South Korea’s GS Inima and Metito are understood to be among those qualified to bid for the contract.

The project has a planned capacity of 120MIGD, with an alternative proposal for an aggregate capacity of 180MIGD. Dewa expects to commission it in phases between 2025 and 2026.

The facility is part of Dewa’s plan to increase its water desalination production capacity from 490MIGD to 750MIGD by 2030. By this time, it envisages RO to account for 41 per cent of its overall desalination capacity, in support of Dubai’s 2050 Clean Energy Strategy.

Northern emirates

As previously stated, the Northern Emirates’ first 150MIGD IWP in Umm al-Quwain is undergoing commissioning. This frees up capacity for Abu Dhabi, which has been exporting both water and electricity to the smaller northern UAE emirates.

In early April, Sharjah Electricity & Water Authority also issued the request for proposals for the contract to develop Sharjah’s first IWP. Located next to an existing desalination plant in Hamriyah, the planned IWP will have a capacity of 90MIGD.

UAE power sector shapes up ahead of Cop28

Other projects

Abu Dhabi Sewerage Services Company is evaluating proposals received earlier this year for a contract to design and build a treated sewage effluent (TSE) polishing plant in Al-Wathba

The plant is expected to have a design capacity of 700,000 cubic metres a day (cm/d), with the potential to expand this capacity to 950,000 cm/d in a subsequent phase. The TSE facility will produce water for higher-end applications than the TSE produced at standard sewage treatment plants.

The largest individual projects within the sector are the two seawater treatment plants, frequently called Project Wave, being procured by Abu Dhabi National Oil Company (Adnoc).

The Mirfa and Al-Nouf nanofiltration plants and their associated utilities have budgets of between $2bn and $2.5bn each. The Mirfa package is in the advanced procurement stage, with negotiations continuing between Adnoc and the shortlisted bidders as this article is published. 


This month's special report on the UAE also includes: 

> UAE power sector shapes up ahead of Cop28

> Strategic Adnoc projects register notable progress

> UAE lenders chart a route to growth

https://image.digitalinsightresearch.in/uploads/NewsArticle/10745652/main.gif
Jennifer Aguinaldo
Related Articles
  • Taqa raises $750m to finance water projects

    30 July 2026

    Abu Dhabi National Energy Company (Taqa) has issued a $750m five-year blue bond to finance sustainable water and wastewater management projects.

    The company said the transaction is the largest blue bond issuance in the Europe, Middle East and Africa region. It is also the largest blue bond issued by an integrated power and water utility globally.

    Issuing the bond allows Taqa to raise money from investors specifically to support water-related environmental projects. These can include desalination, wastewater treatment, water recycling and reuse, and infrastructure that improves water efficiency.

    It is the first blue bond issued under Taqa’s Green and Blue Finance Framework, and follows another blue financing transaction in the UAE earlier this year.

    On 8 January, Dubai-based Emirates NBD bank announced the completion of a $1bn dual-tranche sustainable bond issuance, comprising a $300m blue tranche with a three-year tenor and a $700m green tranche with a five-year tenor.

    Emirates NBD said at the time that the $300m tranche was the largest blue bond issued in the UAE and GCC. The proceeds are intended to support marine conservation and sustainable water projects, while proceeds from the green tranche will finance green initiatives.

    Taqa launched its original Green Finance Framework in 2023 and updated it in 2026 to include blue financing instruments. The latest issuance takes its total green and blue labelled bond issuances to $2.6bn since 2023.

    The Taqa financing also comes as the company expands and modernises its water infrastructure. Taqa is targeting reverse-osmosis technology for 66% of its desalination capacity by 2030, up from about 40% in 2025.

    In June, Taqa awarded a contract for the construction of a 1-million-cubic-metre emergency lagoon in Abu Dhabi. The project will be developed in two phases.

    Phase one has a capacity of 500,000 cubic metres and is planned to be completed within 18 months of the contract award.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17845953/main.jpg
    Mark Dowdall
  • UAE renewables firm secures $375m in financing

    30 July 2026

    Positive Zero, the UAE-based renewable energy firm, has announced the successful closing of a financing facility of up to $375m.

    The long-term financing was arranged by Paris-headquartered Natixis Corporate & Investment Banking (Natixis CIB) and Saudi Arabia-based The Arab Energy Fund.

    Natixis CIB also acted as financial adviser, facility agent, security agent and green loan coordinator for the transaction.

    “The non-recourse financing is the first transaction of its kind in the region for a diversified portfolio of decentralised infrastructure assets, including distributed solar power generation, energy efficiency and clean mobility solutions,” Positive Zero said in a statement.

    “The financing will provide substantial long-term capital to support Positive Zero’s continued expansion in the United Arab Emirates, Saudi Arabia, Bahrain, Oman and Qatar, funding the growth of its distributed infrastructure portfolio, capital expenditure programme and strategic development initiatives,” the Dubai-based firm said.

    The new debt facility secured by Positive Zero builds on US-based BlackRock’s investment of up to $400m in the company in 2023, “further strengthening the company’s capital structure and supporting the next phase of its growth”.

    Positive Zero has the largest distributed solar capacity in the region with more than 500MW in operations and under construction, avoiding more than 450,000 metric tonnes a year of carbon emissions.

    The company has also saved over 100 million kilowatt-hours (kWh) in energy consumption across its client portfolio through its energy-efficiency solutions.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17845491/main3835.jpg
    Indrajit Sen
  • US-Saudi consortium to build $5bn refinery outside Strait of Hormuz

    30 July 2026

    Register for MEED’s 14-day trial access 

    A consortium of privately owned US and Saudi companies has announced an investment commitment of $5bn to build an integrated oil refining, storage and export facility outside the volatile Strait of Hormuz shipping lane.

    After three years of evaluating sites across the Gulf, the consortium has shortlisted three GCC locations beyond the Strait of Hormuz. Discussions have advanced over the past two years, with a preferred site expected to be selected by the end of 2026.

    The consortium, Mera Oil, comprises Fort Worth, Texas-based MWG Enterprises; the US-based Patel Family Office; and PWS, an associate company of Saudi Arabia’s AHQ Group.

    Mera Oil said it remains open to alternative proposals that meet its infrastructure, resilience and development requirements.

    The proposed project will feature a 200,000-barrel-a-day refinery, deepwater port connectivity, large-scale crude and refined-product storage, and marine export facilities.

    A pre-feasibility study covering refinery design, logistics, capital requirements and execution planning is at an advanced stage.

    Once a host jurisdiction is confirmed, the project will proceed to detailed site assessments and engineering design, with mechanical completion targeted for end-2029, followed by commissioning and the start of commercial operations.

    The consortium plans to focus on producing high-specification middle distillates, including ultra-low sulphur diesel and jet fuel, for selected international markets.

    The project is expected to occupy about 1,200-1,500 acres of port-connected industrial land and could create up to 3,000 direct jobs, and around 15,000 indirect and induced jobs, during construction and operations.

    Mera Oil is also progressing discussions with feedstock suppliers and expects financing to include sponsor equity, sovereign and institutional investment, project finance, export-credit support and sharia-compliant funding structures.

    “Designed as a route-resilient energy hub, the development aims to strengthen regional manufacturing, logistics, technical expertise and energy security,” Mera Oil said.

    The first phase of the planned investment will “incorporate energy-efficient refining technologies, emissions-control systems, and potential future capabilities including sustainable aviation fuel co-processing and carbon management.”


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17843946/main.jpg
    Indrajit Sen
  • Local contractor to build nine Bahrain substations

    30 July 2026

     

    Bahrain’s Electricity & Water Authority (EWA) has awarded the local Al-Kooheji Electrical a contract to build nine 66kV substations across the kingdom, according to a source.

    The project is estimated to be worth $110m and is intended to support rising electricity demand from Bahrain’s domestic, commercial and industrial sectors.

    Four local contractors submitted commercial bids for the contract in January. The bidders were:

    • Nass Contracting ($28.4m)
    • Poullaides Construction Company ($31.7m)
    • Mohammed Jalal Contracting ($32.4m)
    • Al-Kooheji Electrical ($34m)

    The substations will be located at South Hidd Industrial, Mondelez, Alba Downstream Park, Muharraq North, Hamala West, Bani Jamra, Hoora, Maqabah East and West Riffa Club.

    The scope includes the construction of the nine substations and control rooms, as well as the installation of transformers, switchgear and feeders connecting the facilities to the grid.

    It also covers communication cabling, monitoring systems, safety and security systems, and associated civil and structural works.

    As MEED understands, the substations are scheduled to be commissioned in stages. Two are planned for 2026, followed by four in 2027 and the remaining three in 2028.

    Serbia’s Energoprojekt Entel was appointed as consultant for the project in April 2025. The consultant’s contract was valued at about $460,000.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17834380/main.jpg
    Mark Dowdall
  • CB&I’s newly acquired unit wins Abu Dhabi wells contract

    30 July 2026

    US-based Chicago Bridge & Iron (CB&I) has announced that its Asset Solutions business – acquired earlier this year from UK-headquartered contractor Petrofac – has won a hydrocarbon well services contract in Abu Dhabi.

    The contract was awarded by Cosmo E&P Albahriya, a wholly owned UAE-based subsidiary of Japan’s Cosmo Energy Holdings Company (Cosmo).

    Under the well engineering services contract, CB&I Asset Solutions will support drilling, engineering, planning and operational activities for offshore Block 4 in Abu Dhabi.

    Cosmo secured 100% exploration rights for offshore Block 4 – covering 4,865 square kilometres of Gulf waters northwest of Abu Dhabi city – in February 2021.

    The block was offered in Abu Dhabi’s second hydrocarbons block competitive bidding round, launched by Abu Dhabi National Oil Company (Adnoc) in May 2019.

    “The award strengthens Asset Solutions’ position in the Middle East and solidifies new relationships with key regional operators. With shared goals of prioritising safe, stable and environmentally conscious production, CB&I’s UAE-based team will draw on its local and global experience of delivering innovative well engineering solutions,” the Texas-based CB&I said in a statement.

    ALSO READ: Abu Dhabi awards production licences for hydrocarbon blocks

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17834142/main4710.jpg
    Indrajit Sen