Dewa installed 60km of water transmission pipes in 2022. Photo: Wam
Dewa installed 60km of water transmission pipes in 2022. Photo: Wam
Dewa installed 60km of water transmission pipes in 2022. Photo: Wam
Dewa installed 60km of water transmission pipes in 2022. Photo: Wam

Dubai can now produce nearly half a billion gallons of water a day


Patrick Ryan
  • English
  • Arabic

Dubai's daily production capacity of desalinated water has reached almost half a billion gallons.

The Dubai Electricity and Water Authority extended the water transmission pipeline network by 64km last year, which is said to have cost around Dh358 million, state news agency Wam said.

The authority's total production capacity of desalinated water has now reached 490 million imperial gallons per day, which is part of its long-term goal of serving more than 1.5 million residents.

“Dewa has surpassed prominent utilities worldwide and has achieved one of the lowest percentages of water network losses worldwide,” said Saeed Al Tayer, the authority's managing director and chief executive.

The new pipeline extensions have remote monitoring to control key water networks around the clock, via vales operated from a control centre, to reduce interruptions.

The extensions also included the supply, installation, testing and commissioning of glass-reinforced epoxy water pipes of different diameters.

The authority is working towards providing Dubai residents with the highest standards of availability, reliability and efficiency, as well as meeting growing demand and increasing water reserves, Mr Al Tayer said.

Water network losses were recorded at 4.5 per cent last year compared to around 15 per cent in North America, he said.

“This underlines our position as one of the most prominent and distinguished utilities worldwide in all fields,” Mr Al Tayer said.

The announcement comes after the authority's net profit in the first quarter of 2023 rose by 1.25 per cent as revenue increased on the back of rising demand for water, electricity and cooling services in the emirate.

Net profit attributable to the shareholders of the company for the three-month period to the end of March surged to about Dh743.8 million ($202.5 million), the authority said in a filing to the Dubai Financial Market where its shares are traded.

“Our reported results for the first quarter of 2023 have exceeded our expectations, reflecting on the robust growth of Dubai,” Mr Al Tayer said.

“Looking ahead, I reiterate our optimism about our operating and financial performance for 2023 and beyond.”

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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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Updated: June 04, 2023, 3:43 AM