MARKET TRENDS
Saudi Arabia and its neighbours are rapidly scaling up desalination to meet rising demand and reduce water risk
10 Mar 2025

Water scarcity has long shaped life in the Gulf. Now, countries across the region are pouring money into desalination to change that. What was once a costly backup is becoming a key part of national strategy.
Saudi Arabia is leading the way. It plans to raise its desalinated water output by more than half by the end of 2025. Already, seawater accounts for half of the country’s supply, up from 44% in 2022. The UAE, Kuwait, and Bahrain have announced similar plans, hoping to double their capacity by 2030. This reflects not only growing demand but a broader view of water as essential to economic and political stability.
Private firms are helping push things forward. ACWA Power, a major Saudi utility, is expanding fast. In February 2025, it announced a $693 million deal to boost its power and water assets, including buying Engie’s shares in projects in Kuwait and Bahrain. The acquisition added more than 4.6GW of electricity and over a million cubic metres of daily water production.
New technology is making this surge possible. Modern desalination plants are quicker to build, use less energy, and cost less to run. These improvements are attracting both government and foreign investment. “The Gulf is turning water scarcity into an investment engine,” says a regional infrastructure analyst.
Still, challenges remain. Parts and skilled workers are in short supply. Regulatory differences between countries make cooperation harder.
Yet the outlook is strong. With state funds backing bold initiatives and public-private partnerships multiplying, Gulf countries are set to dominate the sector.
As oil-rich states look to secure their future, water is becoming their next strategic resource. Those moving fastest may shape not only their own destiny, but the future of the global water supply.
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