As of July 2025, a keyword search for “desalination” projects in MEED’s project database points to major paradigm shift. Some 69 utility-scale projects are currently under construction across the MENA region at a value of nearly USD $65bn; many more are set to start in the coming months, with over 100 further projects at the FEED, feasibility, awarded or design phase.
Seawater, which accounts for 97 per cent of the world’s water, is now being tapped more efficiently than ever before thanks to two converging trends. First, the switch to modern reverse osmosis (RO) systems has dramatically reduced the process’s energy consumption. Second, photovoltaic solar power together with battery energy storage solutions is now reliable enough to meet each plants’ energy demands, ensuring almost carbon-free potable water production.
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Estimates suggest global desalinated water capacity demand could grow at an annual rate of 8 per cent until 2030. With the independent water project (IWP) model now predominant in the MENA region, local and international utility developers are increasingly entering the field to take advantage, especially given the sector’s growing green credentials.
Tech transformation: What’s new?
Innovation in desalination is gathering pace. MENA is a world leader, hosting nearly half of global desalination capacity with Saudi Arabia, the UAE and Qatar at the fore. Solar-powered RO, technically viable and increasingly cost-competitive, is spurring further dynamism.
RO’s specific energy consumption has fallen from 20 kWh per cubic metre in the 1980s to under 4 kWh today. Although thermal desalination processes such as multi-stage flash (MSF) and multi-effect distillation (MED) remain prominent in older facilities, RO’s modularity and compatibility with renewables make it the system of choice for new builds. It now accounts for 85% of operational desalination capacity and 91% of plants under construction worldwide.
This dominance is fuelled by membrane innovation. Thin-film composite membranes, built with nanometre-scale precision, now resist fouling, require fewer chemicals and operate at higher salinities. Spiral-wound configurations provide greater surface area and lower costs.
Solar power, meanwhile, is overhauling the economics. Photovoltaic-powered RO (PVRO) requires a fraction of the power per cubic metre of MSF and MED, helping to keep costs low. Battery energy storage systems (BESS), which store excess power from renewable sources for later use, also offer longer operating hours. This can aid hybrid integration with fossil plants to reduce intermittency, and offers clean desalination in remote areas where transmission infrastructure is lacking.
Projects are increasingly embracing these renewable elements. In Saudi Arabia, the Jubail 3A facility on the Gulf coast is integrating 45 MW of solar PV into its 600,000 m³/d RO plant. In the UAE, the Taweelah plant, the largest of its kind anywhere, is set to blend solar generation with advanced membranes to push costs lower. Gone are the days of pilot programmes – these are production-scale, sovereign-backed ventures designed to displace traditional energy-intensive infrastructure.
The boost in environmental performance is obvious. desalination plants produce approximately 76 million tonnes of CO₂ annually, projected to triple by 2040 without mitigation. But renewable integration offers a clear path to decarbonisation, and digital technologies could multiply their effectiveness. Sensors, digital twins, and AI-powered analytics are increasingly being deployed by developers and operators to predict membrane fouling, optimize maintenance and adjust energy input in real time. These technologies can enhance operational efficiency, reduce chemical use, and extend membrane life — supporting the performance targets monitored by SWPC.
Why MENA is leading the charge
MENA – whose growing population will need fresh water supplies – is fertile ground for desalination innovation. Saudi Arabia has long met the majority of its municipal potable water supply from desalination and continues to build capacity. Egypt and Morocco are rolling out renewable-powered plants designed to supply both drinking water and irrigation.
In recent years, the drive to desalinate has accelerated: it has become a regional security priority. In 2024 alone, the GCC awarded over $20 billion in water contracts, marking it the second-best year in over a decade. Of this, 72% came from Saudi Arabia – set to lead ever-expanding global desalination capacity expansion through to 2030.
Project pipelines are brimming across the region. Some of the GCC’s top projects – like the Hamriyah IWP in Sharjah and Jubail’s next-generation desalination complex – are emblematic of MENA’s drive to scale up and move quickly. And a pivot toward sustainability is also evident. The Shuaibah 3 project in Saudi Arabia will be the world’s largest solar-supported RO plant, cutting 45 million tonnes of CO₂ emissions and displacing the use of 22 million barrels of crude oil annually. The Ar Rayis IWP project, meanwhile, boasts an emission-slashing 20 MW solar PV installation – a glimpse of future baseline infrastructure.
Tariffs, meanwhile, remain competitive. In Saudi Arabia, for example, they stand at just USD $0.41 per cubic metre – illustrating how economies of scale and vertical integration can keep costs low, whatever the surrounding economic uncertainty.
Projects that outperform energy benchmarks are eligible for incentive mechanisms, such as a 50% share of the savings when actual electricity consumption falls below projected levels. This rewards developers who prioritize efficiency and operational excellence.
Together these factors create an unprecedented opportunity for private utility players, both local and international.
The Kingdom has an established track record of harnessing the IWP contractual model through long-term guaranteed offtake concessions that reduce developer risk and provide them cashflow and profits over the 20-25-year contract lifetime.
Increasingly, this same model is being applied to independent water transmission (IWTP) and independent strategic water reservoir (ISWR) projects, where the selected developer groups and their EPC contractors finance, build, own and operate pipeline and water storage projects.
However, it is fair to say that the pool of participating developers remains small, with the same half a dozen companies competing on most projects.
This concentration raises concerns about capacity bottlenecks, limited competition, and overreliance on a few players to deliver large volumes within tight timelines.
Saudi Arabia alone plans to procure an additional 3.5 million cubic metres per day through its 2022-2028 roadmap. Projects such as Jubail 4 and 6, Ras Mohaisen, and the 1.7 million m³/d cluster comprising Ras al-Khair 2, Al-Rais 2 and Tabuk 1 are all expected to reach commercial operation by 2027 alone, and it is unlikely that current developer resources will be sufficient to deliver this pipeline alone.
Developer participation has never been easier. Saudi Water Partnership Company (SWPC), the government body tasked with overseeing the roll out of new IWPs, ISWRs and IWTPs, is implementing a transparent and public procurement process for these projects.
As the principal buyer of all produced water from both public and private sectors in the Kingdom, SWPC is currently responsible for 49 projects, more than 10 million cubic metres of desalinated water production per day and 600 thousand cubic metres a day of treated wastewater.
This is just the start. In desalination, capacity is expected to reach 8.1 million cubic meters per day from the private sector by 2032, driven by a mix of planned, tendered and operational projects. For treated water, SWPC’s roadmap targets a total capacity of 2.6 million cubic meters per day by 2030, supported by a collection network of over 11,000 km. Meanwhile, water transmission pipeline projects are set to deliver a combined capacity of 2.43 million cubic meters per day by 2029, spanning 1,640 km of new pipeline infrastructure.
These ambitions underscore the private sector’s vital role in meeting future water demand and ensuring sustainable resource management – and SWPC’s activism in supporting investors who can help the country achieve it.
Saudi Arabia’s water projects are regarded as template for successful public-private partnerships but undoubtedly require greater developer and contractor participation. With billions of dollars in upcoming tenders and a growing need for diverse developer participation, now is the time to explore opportunities in Saudi Arabia’s water sector. Fill in your details to access the full project pipeline and discover how to partner with SWPC in shaping the future of sustainable water infrastructure.
