UAE ramps up decarbonisation of water sector

10 October 2023

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

> Dewa signs Hassyan water project agreements
> Petrojet joins Project Wave contractor team
> Project Wave first phase reaches financial close

> Alpha Dhabi acquires majority stake in Metito
> Hatta reservoir nears completion
> Sharjah moves Hamriyah bid deadline


 

As a water-scarce country, the UAE has relied on non-conventional water, particularly seawater treated in desalination plants, to meet rising demand.

Over the past decade, the energy-intensive water treatment process, especially when using older technologies, has been a key focus for policymakers tasked with aligning industries with the country’s energy diversification and, more recently, net-zero carbon dioxide emissions agendas.

Decarbonising the water supply has entailed decoupling power and water production and improving the level of treated sewage effluent (TSE) reuse. Other initiatives involve modernising the water pipeline transmission network and tapping renewable energy to power desalination plants.

Demand management initiatives such as tariff reforms and awareness campaigns to make end users conscious of their consumption have also been put in place.

The past few months have marked several milestones in the country’s plan to decarbonise its water sector.

Two private water desalination plants that use reverse osmosis technology to treat seawater are in the final commissioning stage, expanding the UAE’s water production capacity from more energy-efficient plants.

These are the 200 million-imperial-gallon-a-day (MIGD) seawater reverse osmosis (SWRO) plant in Taweela in Abu Dhabi and another plant in Umm al-Quwain, which has a capacity of 150MIGD.

Abu Dhabi’s second major SWRO project, the 120MIGD Mirfa 2 independent water producer (IWP), also reached financial close this year.

Crucially, Abu Dhabi dismantled the thermal-powered Taweelah A2 independent water and power producer (IWPP) plant last year, following the expiry of its long-term offtake contract. The plant’s desalination unit ran on the older multi-stage flash technology.

Hassyan 1 

Dubai achieved an important milestone in October when state utility Dubai Electricity & Water Authority (Dewa) and Saudi-headquartered Acwa Power signed a 30-year water-purchase agreement (WPA) and shareholder agreement for the Hassyan 1 IWP project.

Acwa Power will develop and operate the power plant for 30 years at a levelised water cost of 36.5 $cents a cubic metre, a record low, although not nearly as low as the tariff proposed by another developer when the contract was first tendered.

The project supports Dewa’s plan to increase its water desalination capacity from 490MIGD to 750MIGD by the end of the decade.

Dewa has said the Hassyan 1 IWP will be powered by solar energy, further reducing the plant’s carbon footprint.

In Abu Dhabi, the official signing of a WPA for the Shuweihat S4 SWRO project is imminent, which will add another 70MIGD  to the emirate’s installed water production capacity once complete.

The Shuweihat 4 plant will cater to potable water demand in Abu Dhabi’s Al-Dhafra region, a key focus of Abu Dhabi’s economic development plan.

The bidding process is also under way for two more SWRO plants in Abu Dhabi. The Hudayriat and Saadiyat RO plants, each with a capacity of 50MIGD, will be developed as one IWP contract.

Emirates Water & Electricity Company (Ewec) has not mandated the inclusion of a solar photovoltaic (PV) plant for its most recent IWP projects, as it did for the Taweelah RO plant in 2019. However, it will likely tap either solar or nuclear energy, or both, for its upcoming SWRO plants in line with its goal to halve its total carbon dioxide emissions to 22 million tonnes a year by 2035.

The northern Sharjah emirate is also procuring its first IWP. The planned Hamriyah SWRO plant will have a capacity of 90MIGD.

In addition to the utility clients, Abu Dhabi National Oil Company (Adnoc) has awarded the contract to develop the first phase of Project Wave, which aims to replace the aquifer water injection systems used to maintain reservoir pressure in Abu Dhabi's onshore oil fields.

The project is expected to reduce the water injection-related energy consumption of the oil fields by up to 30 per cent.

Wastewater

Dubai Municipality activated a major programme this year to develop deep tunnels and sewage treatment plants across the emirate. This long-term project could require an investment of up to AED80bn ($22bn).

Known as the Deep Tunnels Portfolio, the scheme will be developed as a public-private partnership (PPP) initiative and will expand the role of private companies in the emirate’s water infrastructure sector.  

It involves the construction of two sets of deep tunnels terminating at two terminal pump stations located at sewerage 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.

Approved by Dubai’s Executive Council in June, the project has been designed to serve the needs of the Dubai population for the next 100 years in alignment with the Dubai Economic Agenda D33 and Dubai Urban Plan 2040.

In the UAE capital, Abu Dhabi Sustainable Water Solutions, formerly Abu Dhabi Sewerage Services Company, received bids for the contract to design, build and operate a planned TSE polishing plant in Al-Wathba earlier this year.

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

In addition to supporting the UAE’s long-term economic and demographic expansion, these water treatment projects also boost the country’s preferred circular carbon economy approach to energy transition.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11193002/main.gif
Jennifer Aguinaldo
Related Articles
  • Brent hits $112 a barrel following Saudi oil field attack

    22 October 2026

    Register for MEED’s 14-day trial access 

    Oil prices climbed more than 3% on 22 October after a drone targeting Saudi Aramco’s Shaybah oil field development killed two people and injured two others a day earlier, adding to concerns over energy supplies as attacks on Saudi energy infrastructure intensified.

    Global benchmark Brent crude hit $112.30 in early trading on 22 October, but later pared gains and was trading at $111.52 a barrel as of 11am GST.

    Three residents and a Saudi citizen were killed in two separate incidents in Saudi Arabia’s Eastern Province on 21 October, authorities said, as attacks on the kingdom accelerated following an escalation of hostilities with the Iran-backed Houthi group in neighbouring Yemen.

    Overnight, the Saudi-led coalition fighting the Houthis in Yemen announced that it had intercepted and destroyed four drones in the Eastern Province.

    Saudi air defences intercepted a drone attempting to target a processing facility at Saudi Aramco’s Shaybah oil field development on the morning of 21 October, the Saudi Ministry of Energy said.

    The official Saudi Press Agency (SPA) carried a statement quoting an energy ministry official as saying the attempted attack resulted in the deaths of two residents – a Filipino and a Nepali – and injuries to two others – an Indian and a Pakistani – after debris fell due to the interception.

    Following the interception, a fire broke out in a vehicle belonging to a contractor at the Shaybah oil field, outside the facility’s perimeter, with no impact on operations.

    Dammam airport attack

    Separately, a Houthi attack on King Fahd International airport in Dammam on the evening of 21 October killed an Indian resident and a Saudi citizen.

    Eight people were also injured in the attack, including a Saudi national, a Nepali, and two nationals each from India, Yemen and Bangladesh. Injuries ranged from minor to critical, the Saudi General Authority of Civil Aviation (Gaca) said the next day.

    “The attack also caused property damage, the extent of which is currently being assessed. Further updates will be provided,” Gaca said, adding that operations had since resumed at Dammam airport.

    Saudi Arabia has come under sustained attack from the Iran-aligned Houthi rebel group in October, including strikes on Riyadh’s international airport in what authorities described as the kingdom’s deadliest incidents in years, as the war with the group escalates.

    The Houthi militias also struck an administrative building at Aramco’s headquarters in Dhahran, in the Eastern Province, on 13 October, resulting in a limited fire.

    The Houthi rebels opened a new front in the regional war between Iran and the US in mid-July, when they breached a four-year truce with Saudi Arabia in Yemen’s civil war, which began in 2014, and started attacking Saudi vessels and Aramco energy assets along the Red Sea, including repeated strikes on the Jizan refinery.

    The 1,200-kilometre East-West pipeline operated by Aramco was also hit by Houthi missiles in September, and once directly by Iran in April.

    The East-West pipeline transports crude from Saudi Arabia’s Eastern Province oil fields to the Red Sea port city of Yanbu on the kingdom’s west coast. It has a pumping capacity of 7 million barrels a day.

    Saudi Arabia relies heavily on the East-West pipeline to bypass the volatile Strait of Hormuz maritime chokepoint and ship crude from its Red Sea coast. Riyadh has increasingly used the line to route exports away from Hormuz since the US-Iran conflict began on 28 February – a tactical advantage most of its Gulf neighbours lack.

    Aramco resumed crude exports via the pipeline at the start of October.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20841984/main.jpg
    Indrajit Sen
  • Nebius agrees Neom AI data centre capacity deal

    22 October 2026

    Register for MEED’s 14-day trial access 

    Saudi artificial intelligence (AI) company Humain and data centre developer DataVolt have signed a preliminary framework agreement with Netherlands-based AI cloud company Nebius for up to 50MW of data centre capacity at Oxagon, Neom’s industrial city on the kingdom's Red Sea coast.

    Under the proposed agreement, Nebius will become an anchor customer at the planned AI data centre campus.

    The contemplated capacity represents half of the initial 100MW currently under construction, which forms part of a planned 360MW first phase.

    The capacity is expected to be commissioned in stages from the fourth quarter of 2027.

    Humain, which is owned by Saudi sovereign wealth vehicle the Public Investment Fund, and DataVolt began construction on the initial 100MW facility at Oxagon in September. The wider campus is planned to reach 1.5GW of capacity.

    The agreement was signed during Nvidia’s GTC event in Berlin, held on 20-22 October. The US graphics processing unit (GPU) designer hosts the GPU Technology Conference (GTC) to showcase advances in AI and accelerated computing.

    Nebius is expected to deploy Nvidia-powered computing infrastructure at the Oxagon campus to support its AI cloud business and international customer base.

    The project combines Humain’s AI capabilities with DataVolt’s experience in developing, financing and operating digital infrastructure. It is intended to support large-scale AI and cloud workloads for Saudi and international customers.

    Oxagon is seeking to position itself as a location for energy-intensive digital infrastructure, supported by pre-zoned industrial land, power resources and subsea cable connectivity to Europe and Africa. The development is also expected to incorporate renewable energy and advanced cooling systems.

    The Oxagon campus builds on an agreement signed in February 2025 by Neom and DataVolt to develop data centre infrastructure at the site. That deal involved an investment of about $5bn and envisaged a 1.5GW development.

    In September 2025, DataVolt signed a memorandum of understanding with South Korea’s LG Electronics covering cooling systems for the Oxagon data centre project.

    DataVolt was founded in 2023 and is a wholly owned subsidiary of Saudi infrastructure developer Vision Invest. Humain was launched in May 2025 to develop capabilities across the AI value chain, including data centres, high-performance computing infrastructure, cloud platforms and AI models.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20837696/main.jpg
    Yasir Iqbal
  • Riyadh awards $301m Sheikh Jaber Road contract

    22 October 2026

     

    Register for MEED’s 14-day trial access 

    The Royal Commission for Riyadh City (RCRC) has awarded an estimated SR1.13bn ($301m) contract to local firm Alomaier Trading & Contracting Company to upgrade a section of Sheikh Jaber Al-Ahmad Al-Sabah Road in the capital.

    The project covers the construction of an urban road about 3 kilometres (km) long, with a right-of-way width of about 120 metres.

    The scope of work includes the delivery of three interchanges featuring post-tensioned, voided-slab concrete bridges; a cut-and-cover tunnel; and three box culverts designated IC02, IC03 and IC04.

    The contract also encompasses pumping and lifting stations, stormwater drainage and irrigation networks, earthworks, asphalt paving, roadway lighting, power distribution systems, mechanically stabilised earth retaining walls and landscaping works.

    The award forms part of RCRC’s wider programme to upgrade Riyadh’s arterial road network, decongest critical bottlenecks and expand transportation capacity in the city ahead of Expo 2030 and the 2034 Fifa World Cup.

    The contract award follows RCRC’s appointment in May of a joint venture of Riyadh-based Al-Rashid Trading & Contracting Company and Turkiye’s IC Ictas for an estimated SR5bn ($1.3bn) contract to construct another section of Sheikh Jaber Al-Sabah Road.

    That project covers 12km from Khurais Road to Al-Thumama Road and is a component of Riyadh’s Second Eastern Ring Road scheme.

    Alomaier Trading & Contracting Company has secured several contracts in recent months.

    In August, Saudi Arabian Railways awarded the contractor an estimated SR4bn-plus ($1.1bn) contract to add a second track to the first section of the existing phosphate railway in the kingdom’s Eastern Province.

    The railway package covers about 100km between AZ1/Nariyah Yard and Ras Al-Khair. Works include track doubling, alignment modifications, utility bridges, culvert widening, hydrological structures, conversion of the AZ1 siding into a mainline track, and enabling works for signalling and telecommunications systems.


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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20833960/main.jpg
    Yasir Iqbal
  • Dewa International signs energy and infrastructure MoUs

    22 October 2026

    Dubai Electricity & Water Authority’s (Dewa) new development arm, Dewa International, has signed four memorandums of understanding (MoUs) with international partners to explore investment and project development opportunities in the energy, water and infrastructure sectors.

    The agreements, signed during Dubai’s Water, Energy, Technology and Environment Exhibition (Wetex 2026), follow the launch of the wholly owned subsidiary in June, as reported by MEED.

    At the time, the utility said the arm would be used to export Dubai’s energy and water infrastructure model, with a focus on developing conventional and clean energy projects for global markets.

    At Wetex, Dewa International signed an MoU with France’s EDF Power Solutions to explore potential joint participation in solar, wind, battery energy storage and pumped-storage hydropower projects.

    A separate agreement with China Energy International Group explores the company’s potential role as an engineering, procurement and construction (EPC) partner for major energy, water and infrastructure projects. The MoU also covers cooperation in project development and EPC services.

    A further agreement with UK-based Capital Dynamics focuses on potential joint investments in operational clean energy assets in Europe. The parties will also explore establishing an investment vehicle for future clean energy infrastructure investments.

    Dewa International also signed a fourth agreement with Mumbai-Headquartered Tata Consultancy Services, exploring the company’s potential role as a technical consultancy partner. The scope covers technology strategy, information technology and operational technology integration, and asset performance management solutions.

    Dewa currently has almost $7bn-worth of power and water projects under execution across the UAE, according to regional projects tracker MEED Projects.

    Its flagship Mohammed Bin Rashid Al-Maktoum Solar Park is the largest single-site solar park in the world. The utility is currently advancing the project’s seventh phase, with Abu Dhabi Future Energy Company (Masdar) recently submitting the lowest bid for the project, as exclusively reported by MEED.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20828111/main0128.jpg
    Mark Dowdall
  • EGA’s Al-Taweelah restoration reaches 50% completion

    22 October 2026

    Register for MEED’s 14-day trial access 

    The UAE’s Emirates Global Aluminium (EGA) has announced that half of the reduction cells at its Al-Taweelah smelter in Abu Dhabi, which sustained damage from Iranian attacks in late March, have been restarted.

    On 28 March, drone and missile attacks by Iran on Khalifa Economic Zone Abu Dhabi (Kezad), where the smelter is located, led to an emergency shutdown of the facility and injured two EGA employees, who were later discharged from hospital.

    To restore hot metal production, EGA said it must progressively repair and restart each reduction cell. So far, 631 of the 1,262 reduction cells at Al-Taweelah have been restarted.

    EGA – which is jointly owned by the governments of Abu Dhabi and Dubai – is working on all three potlines at Al-Taweelah in parallel, to accelerate the rate of reduction cell start-ups. Potline 1 was energised on 26 May, followed by Potline 3 on 13 July and Potline 2 on 3 August.

    After being restarted, a reduction cell typically takes a week to stabilise and reach full production. Some hot metal is used to restart subsequent reduction cells, with the balance being delivered to EGA’s Al-Taweelah casthouse, to be cast into finished premium aluminium products.

    Following the emergency shutdown, molten aluminium froze in every reduction cell at Al-Taweelah, leaving solid metal pads weighing up to 45 tonnes, which needed to be removed. Almost 80% of the reduction cells can then be restarted. The remaining reduction cells require repairs, potlining demolition and relining, depending on how long the reduction cells had been operating before the incident.

    Periodically cutting out, repairing and relining reduction cells at the end of their operating life is routine in aluminium smelting. Compared to the normal rolling maintenance programme, EGA has more than tripled its capacity in order to safely repair and restart reduction cells at Al-Taweelah, by optimising workflows, adding equipment, strengthening employee capability and deploying industrial process innovations.

    ALSO READ: EGA to receive first Guinea bauxite post-settlement

    About 1,000 employees are working on the restoration of hot metal production at the Al-Taweelah smelter, EGA said in a statement on 26 August.

    During the restoration, EGA has accelerated the deployment of a technology pilot at Al-Taweelah that would otherwise have required operating reduction cells to be shut down. The pilot E40 upgrades to 13 DX technology reduction cells will be used to prove the performance of the technology before industrialisation across all 808 DX technology cells at Al-Taweelah.  

    If applied to all DX reduction cells, EGA’s E40 technology has the potential to increase hot metal production by 67,000 tonnes a year (t/y).

    EGA’s Al-Taweelah alumina refinery is located next to the Al-Taweelah smelter.

    Alumina is the feedstock for aluminium smelters. It is transferred to storage and then into the smelter by a system of conveyor belts.

    The Al-Taweelah alumina refinery continues to produce alumina at approximately 50% capacity, EGA said. While the alumina refinery is technically ready to ramp-up further, timing will be based on supply chain dynamics and the optimisation of EGA’s alumina sourcing strategy.

    The company announced on 10 July that it had restarted alumina production at its main refinery in Al-Taweelah, adding at the time that it expected to have the technical capability to ramp up to full alumina production by the end of this year.

    The Al-Taweelah alumina refinery began production in 2019 and has a nameplate capacity of 2 million t/y. 

    EGA’s Al-Taweelah smelter consists of 1,262 reduction cells and produced 1.6 million tonnes of cast metal in 2025.

    The Al-Taweelah alumina refinery produced 2.4 million t/y of alumina in 2025, and met 46% of EGA’s alumina needs.

    EGA also said in July that its site in the Jebel Ali area of Dubai is continuing aluminium production at full capacity. Average daily inbound deliveries of all major raw materials exceed EGA’s requirements to maintain metal production at Jebel Ali and meet the demands of restoration at Al-Taweelah, with raw material stocks in the UAE increasing.

    Separately, the ramp-up of production at EGA’s new Al-Taweelah recycling plant remains on track, with full production expected by late in the fourth quarter of this year.

    EGA’s recycling plants in the US and Germany, meanwhile, have continued production throughout 2026.

    ALSO READ: EGA to receive first Guinea bauxite post-settlement

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20827987/main1007.jpg
    Indrajit Sen