From Municipal Giants to Smart Farms: How Desalination Is Shaping the Middle East’s Water Economy
The Middle East desalination plants market is projected to exhibit a dominant presence of the municipal sector, which is expected to comprise nearly 48.7 percent of the total market share in 2024. This leading position arises from the increasing demand for potable water amidst rapidly growing urban populations, particularly in countries such as Saudi Arabia, the United Arab Emirates, and Qatar. Governments throughout the region are prioritizing extensive municipal desalination initiatives to establish sustainable water sources as groundwater reserves diminish. Notably, Saudi Arabia accounts for over one-third of the regional municipal desalination capacity, bolstered by investments from the Saline Water Conversion Corporation (SWCC).
Furthermore, national water strategies including UAE Water Security 2036 and Saudi Vision 2030 underscore the need for expanding desalination infrastructure, with a significant focus on adopting energy-efficient reverse osmosis technologies. These initiatives not only fulfill domestic water requirements but also contribute to achieving water independence in arid regions where annual rainfall is below 100 mm.
The industrial segment holds 23.6 percent of the market, driven primarily by increasing water consumption in the oil and gas refining, petrochemical, and manufacturing sectors. Key industrial zones, including Jubail Industrial City in Saudi Arabia and Ruwais Industrial Complex in Abu Dhabi, rely heavily on desalinated water for process cooling and refining purposes. Demand within the industrial sector is consistently growing due to the establishment of new refineries, hydrogen production initiatives, and green industrial clusters that utilize non-traditional water sources. Industries are also adopting private desalination facilities to ensure uninterrupted water supply and mitigate operational risks. Additionally, the integration of hybrid desalination technologies including waste heat recovery systems and renewable energy-based plants is gaining popularity in industrial sectors as a means of reducing traditionally high energy costs associated with desalination.
The agricultural sector, representing 11.5 percent, is emerging as a new growth area as Middle Eastern nations strive for food security amid challenging climatic conditions. Countries like Israel and Oman are employing desalinated water to enhance precision irrigation and greenhouse farming practices. While agriculture has faced limitations due to the high costs of desalinated water, advancements in solar-powered desalination and brine management are gradually improving viability. Pilot initiatives in the UAE and Saudi Arabia have demonstrated reductions in desalination costs for agricultural applications by 20 to 30 percent, promoting controlled-scale irrigation for high-value crops. The increasing trend toward circular water use, involving the treatment and reuse of brine for secondary agricultural applications, indicates a progressive diversification of desalination utility beyond the municipal and industrial sectors.
Power generation constitutes 9.2 percent of the market, largely due to the water-intensive requirements of thermal power plants. The integration of power and desalination facilities is a distinguishing characteristic of the utility infrastructure in the Middle East, especially in countries like Kuwait and Qatar. Cogeneration systems, which simultaneously produce electricity and desalinated water, are gaining traction as utilities work to optimize fuel consumption and minimize emissions. New Independent Water and Power Projects (IWPPs) are being developed with energy efficiency as a core focus, utilizing advanced technologies such as multiple-effect distillation (MED) and hybrid reverse osmosis. As renewable energy capacity increases across the region, particularly in solar power, new desalination plants are increasingly powered by clean energy sources, marking a significant transition towards decarbonized water production.
The commercial segment, with a 7.0 percent market share, is driven by industries such as hospitality, healthcare, and real estate. Luxury resorts, business districts, and hospitals in Gulf nations are establishing small to mid-scale desalination units to secure water self-sufficiency, particularly in remote or high-demand coastal regions. Growth in this segment is supported by private investments and advancements in technology, which make modular desalination systems more feasible for commercial properties. These units, often powered by solar energy or integrated with wastewater recovery systems, align with the sustainability objectives and green building certifications that are increasingly becoming standard in modern infrastructure projects.
