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.
Exclusive from Meed
-
-
Contractor wins Oman housing substation contract7 April 2026
-
UAE reviews $1.63bn fourth federal road project7 April 2026
-
Kingdom Holding Company signs Riyadh project deal7 April 2026
-
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
-
Adnoc builds long-term oil and gas production potential7 April 2026

Between 2023 and 2024, Abu Dhabi National Oil Company (Adnoc Group) spent an estimated $37bn on projects critical to achieving its upstream targets: increasing oil production capacity to 5 million barrels a day (b/d) by 2027 and attaining gas self-sufficiency by the end of the decade.
The state energy company spent more than $22.5bn in 2023 alone, marking the highest annual oil and gas project spending on record in the UAE. The Hail and Ghasha sour gas development – accounting for approximately $17bn – remains the single-largest contract award in the country’s hydrocarbons sector.
A slowdown in capital expenditure (capex) following two years of elevated spending is therefore in line with expectations. While engineering, procurement and construction (EPC) contract awards for upstream projects declined in 2025 and into this year, Adnoc has still committed close to $10bn over the past 15 months.
The largest award during this period came from Adnoc Offshore, which let contracts worth $7.5bn for three EPC packages under the Lower Zakum Long-Term Development Plan (LTDP-1). Spain’s Tecnicas Reunidas and Abu Dhabi-based NMDC Energy and Target Engineering Construction Company were selected last February to execute the works.
The Lower Zakum field, located 65 kilometres northwest of Abu Dhabi, is majority-owned by Adnoc Offshore (60%). Other stakeholders include an Indian consortium led by ONGC Videsh (10%), Japan’s Inpex (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).
Adnoc Offshore aims to increase production capacity at Lower Zakum to 520,000 b/d by 2027 and sustain that level through 2034.
Offshore contracts in 2026
So far this year, Adnoc Offshore has awarded contracts for two key projects: the Satah Al-Razboot (Sarb) deep gas development and the expansion of the Nasr oil field.
Adnoc achieved final investment decision (FID) on the Sarb project in January and awarded the main EPC contract to US-based McDermott International. The contract is estimated to be worth around $500m, sources told MEED.
The project is expected to deliver 200 million cubic feet a day (cf/d) of gas by the end of the decade – enough to power more than 300,000 homes.
The scope includes the EPC of an offshore wellhead tower with four gas production wells, which will be connected to Das Island for processing through Adnoc Gas facilities. Works also include the installation of pipelines and intra-field connections linking the Sarb field to Das Island.
Also in January, Adnoc Offshore awarded McDermott a $942m contract for the Nasr-115 project, which will increase production capacity at the Nasr offshore field to 115,000 b/d. The field is located about 130km northwest of Abu Dhabi.
McDermott’s scope covers full EPCI services for two topside structures, a new manifold tower, a jacket, a bridge, associated pipelines, subsea cables and brownfield modifications.
Strategic projects in queue
Over the next 12-18 months, Adnoc’s upstream spending is expected to shift from meeting near-term production targets –now largely within reach – to building longer-term capacity beyond 2030.
Following $1.3bn in EPC awards in 2024 for the Upper Zakum expansion to 1.2 million b/d, Adnoc Offshore is advancing the next phase, which will increase capacity to 1.5 million b/d.
Located 84km offshore, Upper Zakum is the world’s second-largest offshore oil field. Adnoc Offshore has divided the EPC scope into three packages, with contractors submitting commercial bids for the UZ1.5MMBD project in February.
Adnoc Offshore is also progressing the Umm Shaif gas cap and surface pressure boosting project, aimed at increasing gas production by 550 million cubic feet a day (cf/d) and condensate output by 50,000 b/d. About 520 million cf/d of additional gas is expected to be fed into Adnoc’s sales gas network.
The first phase of the project has been split into three EPC packages:
- Offshore package 1: fabrication of a 30,000-tonne gas compression system
- Offshore package 2: fabrication of a 30,000-tonne gas compression system
- Onshore package: EPC of gas inlet and processing systems at Das Island
Adnoc Offshore is currently evaluating commercial bids submitted in February for these packages.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16285814/main.gif -
Contractor wins Oman housing substation contract7 April 2026
Oman’s Public Authority for Social Insurance has awarded a contract for the supply, installation, execution and maintenance of a main power substation for its affordable housing project.
The contract was awarded to Kuwait-based Al-Ahleia Switchgear Company.
The project comprises a 400/132/11kV main substation for the Affordable Housing Project, known locally as Al-Masaken Al-Muyassara.
The tender was announced last November, with the bid envelopes opened on 16 December 2025.
Al-Ahleia Switchgear submitted another bid in March for a contract to build three 132/11kV main transformer stations for Kuwait’s Public Authority for Housing Welfare (PAHW).
As reported by MEED, the company’s price of KD10.5m ($34.1m) was the lowest of two offers for the engineering, procurement and construction (EPC) contract.
Separately, in December, Al-Ahleia Switchgear submitted the lowest bid of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s PAHW.
The bid was marginally lower than the two other offers submitted by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16285335/main5555.jpg -
UAE reviews $1.63bn fourth federal road project7 April 2026
UAE authorities on 6 April unveiled details of the AED6bn ($1.63bn) fourth federal corridor scheme, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.
The project comprises a 68-kilometre corridor with 10 major interchanges, four flyovers and six to eight lanes in each direction.
Officials provided technical updates on the corridor, including revised connection points and coordination with local authorities to finalise route alignments in line with broader development plans.
Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure, said the programme underscores the central role of infrastructure in the UAE’s development agenda and competitiveness. He was speaking while chairing the first meeting of the UAE Infrastructure and Housing Council this year.
The council also reviewed progress on federal infrastructure initiatives aimed at improving transport efficiency and strengthening coordination between federal and local authorities.
Al-Mazrouei said the next phase will focus on accelerating the delivery of high-impact projects to enhance transport system performance and support the shift towards smart and sustainable mobility in line with population growth and urban expansion.
The council also assessed progress on linking Ajman to the third and fourth federal corridors, which is expected to provide alternative routes, improve traffic flow and further enhance mobility between the emirates.
On public transport, the council reviewed a study on transport links between Dubai, Sharjah and Ajman to address rising commuting demand.
The proposed plan includes 10 priority routes incorporating bus rapid transit and dedicated lanes, with connections to key hubs such as the Dubai Metro and city centres.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16285296/main.jpg -
Kingdom Holding Company signs Riyadh project deal7 April 2026
Saudi Arabia’s Kingdom Holding Company has signed an agreement with Sumou Real Estate Company under which Sumou will manage the development, marketing and sale of a 3-million-square-metre land plot in Riyadh.
The scheme is expected to generate about SR4bn ($1bn) in total sales.
In a Tadawul disclosure, Kingdom Holding Company said its subsidiaries, Kingdom Real Estate Development Company and Trade Centre Company, have appointed Sumou as the exclusive development manager for the site.
The project is scheduled to be implemented over 36 months, starting once the masterplans are approved by the relevant authorities.
In a separate stock exchange statement, Sumou said it will be paid 6.5% of total infrastructure development costs and 2.5% of project sales, in addition to the brokerage commission paid by buyers.
Kingdom Holding Company said the agreement aligns with its long-term strategy for its Riyadh landbank, which originally totalled around 20 million sq m and is being developed in phases.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16284668/main.jpg -
Saudi Arabia’s Jubail industrial city hit by missile debris7 April 2026
Explosions were reported in Saudi Arabia’s Jubail industrial city on 7 April. Saudi authorities said the country’s air defence systems intercepted seven ballistic missiles targeting the Eastern Province, with debris landing near energy facilities, primarily in Jubail.
Jubail is one of the world’s largest petrochemical production hubs, with an annual output of about 60 million tonnes, accounting for an estimated 6% to 8% of global supply.
The incident places renewed focus on the kingdom’s flagship petrochemical cluster, where majority state-owned Saudi Basic Industries Corporation (Sabic) is a key investor.
Jubail also hosts major downstream oil, gas and petrochemical assets operated by Saudi Aramco, US-based Dow and France’s TotalEnergies, underscoring the industrial zone’s international significance.
Saudi officials said damage assessments are ongoing.
The developments follow an Israeli strike on 6 April targeting a major petrochemical complex in Iran’s southern Asaluyeh region, described as the country’s largest industrial hub.
Separately, authorities closed the King Fahd Causeway – the main bridge linking Saudi Arabia and Bahrain – early on 7 April as a precaution amid heightened security concerns.
The King Fahd Causeway Authority said in a post on X that vehicle movement had been “suspended as a precautionary measure” due to Iranian attacks targeting Saudi Arabia’s Eastern Province.
The 25-kilometre bridge is Bahrain’s only road link to the Arabian Peninsula.
US President Donald Trump has issued an ultimatum for Iran to reopen the Strait of Hormuz and threatened to bomb Iranian power plants and bridges if Tehran does not comply by 8pm EDT on 7 April.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16283711/main2424.jpg
