UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, inspects a water desalination plant, on December 23, 1970. National Archives images supplied by the Ministry of Presidential Affairs.
UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, inspects a water desalination plant, on December 23, 1970. National Archives images supplied by the Ministry of Presidential Affairs.
UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, inspects a water desalination plant, on December 23, 1970. National Archives images supplied by the Ministry of Presidential Affairs.
UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, inspects a water desalination plant, on December 23, 1970. National Archives images supplied by the Ministry of Presidential Affairs.


World Water Day: A chance for the UAE to re-think our use of resources


Nidal Hilal
Nidal Hilal
  • English
  • Arabic

March 22, 2022

Groundwater is often taken for granted. But people all over the world, not just in the Middle East, rely on groundwater as a primary source. Here in the UAE, around half of the country's water supply is met by groundwater. Levels, however, are dwindling rapidly due to the pressures of population growth, urban development and climate change.

Finding solutions to the depletion of water is crucial for social and economic development, especially in nations that have limited conventional water resources. Fortunately, the UAE has long recognised the need for alternative water supplies and has sought to diversify its water resources, while adopting more energy efficient processes. Important lessons have been learnt in the quest to address this issue. The nation’s technological advancements in the field can serve as an example to other countries in filling the gap between resource and demand.

The UAE can be a hub for water technologies, on the strength of localised research and development

Receiving less than 100mm of average rainfall every year, the UAE began to explore unconventional resources as early as the 1970s, when the country began the process of removing salt from seawater and other saline solutions – known as desalination – and the treatment of wastewater. Today, 42 per cent of the UAE’s water comes from desalination plants. In fact, Abu Dhabi stands as a global leader in desalination producing 9 per cent of the world’s desalinated water, but such plants are energy-intensive and their affect on the environment is detrimental.

The UAE's water consumption is among the highest in the world – approximately 500 litres per day, which is 50 per cent above the global average.
The UAE's water consumption is among the highest in the world – approximately 500 litres per day, which is 50 per cent above the global average.

Newer sustainable desalination methods are constantly required as demand grows. If current patterns and rates continue, the UAE’s total annual water demand is estimated to double by 2030 – from 4.5 billion cubic meters (BCM) per year currently to between 9 and 10 BCM.

The UAE also has one of the highest per capita water consumption rates in the world – approximately 500 litres per day, which is 50 per cent above the global average. Groundwater supply in the country is also dwindling fast due to unsustainable levels of pumping, which could hinder irrigation.

The government has acknowledged the effect of an over-reliance on groundwater and energy intensive thermal processes to obtain desalinated water. With the launch of several new projects, the seawater desalination capacity of GCC countries is set to grow by 37 per cent in the next five years, with more reverse osmosis plants.

Reverse osmosis is a way of purifying water based on membrane technology. Compared to conventional methods, membrane technology requires less energy and takes up less space. It has traditionally been a challenge to apply reverse osmosis in the Arabian Gulf due to the higher salt content here than in the rest of the world, but with localised research and increased investment in infrastructure, the UAE is fast adopting energy-efficient membrane technology.

The world’s largest desalination plant at the Al Taweelah Power and Water complex in Abu Dhabi is expected to begin operations this year. The facility will have a capacity of 909,200 cubic meters of water per day – 44 per cent more than the world’s current largest RO plant.

The construction of a series of dams is also under way, including one in Wadi Naqab, Ras Al Khaimah, which will boast a capacity of one million cubic meters. Dams and water canals will boost groundwater storage in agriculture areas as well as water supply to residential neighbourhoods.

Besides this, Dubai’s Electricity and Water Authority is currently constructing the world’s largest aquifer storage and recovery project, as a strategic reserve, which will store up to 6,000 million imperial gallons of water once it is completed by 2025.

Finally, three desalination projects in Abu Dhabi, Dubai and Umm Al Quwain, set to be commissioned next year, will increase the country’s desalination capacity to 1,590 million imperial gallons per day.

There is, however, no one single solution to address water scarcity. Collaborations are key to find more innovative ways to ensure continued supply. To this end, NYU Abu Dhabi has joined with Emirates Water and Electricity Company to boost the region’s water security and sustainability.

As a key research hub, the NYUAD Water Research Centre’s laboratory is trying to bridge the gap between academia and industry by providing low cost solutions for desalination and water treatment. The centre develops membrane materials suited to the UAE and water from the Arabian Gulf.

Water delivery using donkeys passing in front of Qasr al Hosn in the early 1960s. Sea water was refined using a desalination plant on the beach and distributed to homes and offices for around a dirham a gallon. Courtesy: John Vale
Water delivery using donkeys passing in front of Qasr al Hosn in the early 1960s. Sea water was refined using a desalination plant on the beach and distributed to homes and offices for around a dirham a gallon. Courtesy: John Vale

This approach enables the centre to localise research and tailor materials based on nanofibers, carbon nanotubes and ceramics to the UAE and water from the Arabian Gulf. Localised research is particularly important as the region’s water is known to be problematic due to its high salinity.

There is huge potential for the UAE to become a hub for water technologies on the strength of localised research and development. The nation has the capabilities to supply its own membrane technology to other nations, making valuable contributions to water security beyond its borders.

Solar energy driven membrane technology combining the high solar irradiation in many water-scarce regions with small-scale desalination systems can be used to provide water in remote areas. For example, we recently developed membrane heaters to enhance the energy efficiency of desalination by 25 per cent. The range of facilities available to us, from bench-scale to industrial size pilot systems, allows us to develop solutions for all levels.

But while finding solutions is key, communities must shift towards managing water demand in a better way and wasting much less water. Both the public and private sectors must acknowledge the role that they play in perpetuating the problem and being committed to solving it.

As we celebrate World Water Day, it is important to remember the dangers of taking unseen natural resources for granted. We all have a part to play in conserving this precious resource.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Started: October 2015 in India, November 2016 in UAE

Founders: Harsh Dhand; Vaibhav and Purvashi Doshi

Based: Bangalore, India and Dubai, UAE

Sector: Online rental marketplace

Size: 40 employees

Investment: $2 million

Updated: March 22, 2022, 4:34 AM