UAE Desalination Plant Market, Segmented By Technology (Thermal Technology, Membrane Technology), By End Use Sector (Industrial, Municipal, and Others), By Region, Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.33 Billion
CAGR (2026-2031)	9.76%
Fastest Growing Segment	Industrial
Largest Market	Abu Dhabi
Market Size (2031)	USD 11.07 Billion

Market Overview

The UAE Desalination Plant Market will grow from USD 6.33 Billion in 2025 to USD 11.07 Billion by 2031 at a 9.76% CAGR. The UAE desalination plant market consists of industrial facilities that utilize thermal distillation or membrane-based technologies to convert saline water into potable resources. The primary drivers fueling this sector include the region's acute natural freshwater scarcity and the substantial rise in municipal and industrial water demand resulting from rapid urbanization and population growth. These fundamental necessities ensure sustained investment in capacity expansion independent of technological shifts.

However, the market faces a significant challenge regarding the high energy intensity and environmental footprint associated with brine disposal, which complicate sustainability mandates. According to the Dubai Electricity and Water Authority, in 2024, the peak daily desalinated water demand reached 455 million imperial gallons per day. This escalating operational pressure highlights the difficulty of meeting surging consumption requirements while simultaneously attempting to mitigate the ecological impact of large-scale water production infrastructure.

Key Market Drivers

The transition to energy-efficient Sea Water Reverse Osmosis (SWRO) technologies represents a primary market catalyst, driven by the national objective to decouple water production from electricity generation. This shift allows operators to significantly reduce the carbon intensity of desalination processes while managing operational costs associated with legacy thermal distillation. According to Emirates Water and Electricity Company (EWEC), May 2024, in the 'Statement of Future Capacity Requirements 2024-2037', the entity forecasts that reverse osmosis technology will account for 92 percent of its total water generation by 2030, marking a decisive move away from gas-fired thermal systems.

Simultaneously, the market is propelled by the proliferation of Public-Private Partnership (PPP) investment models designed to meet escalating municipal and industrial water demand. These frameworks facilitate the rapid development of large-scale infrastructure projects required to support population growth and economic diversification zones without solely burdening state budgets. For instance, according to ACWA Power, September 2024, in a corporate disclosure regarding the 'Hamriyah Independent Water Project', the company confirmed an investment of approximately USD 680 million to develop the facility, highlighting the substantial capital directed toward expanding potable water availability. Furthermore, according to Dubai Electricity and Water Authority (DEWA), in November 2024, the total installed water production capacity in Dubai stood at 495 million imperial gallons per day, underscoring the continuous physical expansion of the sector.

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Key Market Challenges

The high energy intensity and environmental footprint associated with brine disposal constitute a formidable barrier to the sustained growth of the UAE desalination plant market. This challenge hampers market expansion by significantly increasing operational expenditures and imposing strict regulatory hurdles on new infrastructure projects. As the sector relies heavily on power-consuming thermal distillation processes, the escalating cost of energy erodes the financial viability of capacity expansion. Furthermore, the cumulative ecological damage caused by discharging concentrated brine into marine ecosystems has triggered rigorous environmental compliance mandates. These regulations force developers to prioritize costly mitigation technologies over simple capacity additions, thereby slowing the pace of new project commissioning and limiting the market's ability to swiftly address rising water deficits.

The magnitude of this environmental pressure is evident in the region's immense contribution to global output, which saturates the local ecosystem. According to the Gulf Water Science and Technology Association, in 2024, the GCC region—with the UAE as a key contributor—accounted for more than 40 percent of the world’s total desalinated water production. This high concentration of industrial activity intensifies the brine disposal crisis, creating a saturation point that physically and regulatory restricts the approval of new large-scale facilities using conventional methods. Consequently, the market faces a deceleration as investment must be diverted from growth toward meeting complex sustainability and energy-efficiency standards.

Key Market Trends

The implementation of Zero Liquid Discharge (ZLD) and brine mining solutions is emerging as a transformative trend, shifting the sector's focus from regulatory compliance to value creation through circular economy principles. Operators are increasingly deploying advanced separation technologies to extract commercially valuable minerals, such as magnesium and calcium, from concentrated saline byproducts, effectively turning waste into a revenue stream while mitigating marine ecosystem damage. This strategic pivot allows facilities to decouple resource recovery from simple water production, fostering industrial synergies with sectors like construction and manufacturing. According to The Finance World, May 2025, in the article 'UAE Unveils First Pilot to Turn Desalination Brine into Blue Energy', the newly launched 'Project Elixir' pilot system, designed to transform desalination brine into renewable energy and industrial materials, is supported by a AED 100 million innovation fund to accelerate such sustainable technological advancements.

The deployment of AI-driven digital twins for operational efficiency is simultaneously revolutionizing the management of large-scale water infrastructure and distribution networks. By creating high-fidelity virtual replicas of physical assets, utilities can leverage real-time data and predictive analytics to simulate scenarios, optimize thermodynamic performance, and preemptively identify network anomalies without disrupting active supply lines. This digital integration enables precise control over energy consumption and hydraulic flows, significantly enhancing the reliability and lifespan of critical desalination assets. According to Utilities Middle East, October 2025, in the article 'Abu Dhabi Unveils World-First AI Platform for Energy and Water Management', the Department of Energy's 'AD.WE' artificial intelligence platform is projected to save 160 million cubic meters of water annually by 2035 through intelligent leak detection and automated resource optimization.

Segmental Insights

The Industrial segment represents the fastest-growing category within the UAE desalination plant market, driven by the nation's strategic expansion of its manufacturing capabilities. Increasing demand for processed water in sectors such as chemical processing, power generation, and construction supports this upward trend. Furthermore, initiatives spearheaded by the Ministry of Industry and Advanced Technology to accelerate industrial diversification are creating substantial requirements for reliable water supplies. This focus on reducing economic dependence on hydrocarbons necessitates robust infrastructure for industrial water treatment, directly stimulating the adoption of desalination technologies across various industrial zones.

Regional Insights

Abu Dhabi holds the leading position in the UAE desalination plant market due to its extensive development of independent water projects. The Emirates Water and Electricity Company drives this dominance by strategically decoupling water desalination from power generation, favoring energy-efficient reverse osmosis technology. This approach enhances operational flexibility and supports long-term water security objectives. Additionally, the Abu Dhabi Department of Energy provides a stable regulatory framework that encourages consistent infrastructure expansion. Consequently, the emirate secures its market leadership by prioritizing sustainable production methods to meet increasing demand.

Recent Developments

• In October 2024, Energy Recovery was awarded contracts totaling over $12 million to supply its pressure exchanger technology for three separate seawater reverse osmosis desalination projects within the UAE. These orders included equipment for a unique floating desalination barge designed to operate in the Arabian Gulf, pumping fresh water back to the mainland. The installed devices were projected to save significant amounts of energy annually, reducing carbon emissions by an estimated 201,265 tons per year. This procurement highlighted the sector's continued focus on optimizing operational efficiency and minimizing the environmental footprint of large-scale water treatment facilities.
• In September 2024, ACWA Power entered into a significant agreement with the Sharjah Electricity, Water and Gas Authority (SEWA) to develop the first Independent Water Project (IWP) in Hamriyah. This strategic collaboration aimed to address the growing demand for potable water in the emirate through the construction of a facility utilizing seawater reverse osmosis technology. The project was designed to initially produce 272,000 cubic meters of desalinated water per day by the second quarter of 2027. Upon reaching full operational capacity, the plant was expected to generate 410,000 cubic meters daily, sufficient to meet the needs of approximately 1.4 million residents.
• In July 2024, the Emirates Water and Electricity Company (EWEC) announced the receipt of proposals from four major consortia for the development of the Saadiyat Island Reverse Osmosis Independent Water Project. The bidding entities included industry leaders such as Acciona, Engie, and GS Inima, reflecting strong international interest in the UAE's water infrastructure sector. This greenfield desalination facility was planned to produce approximately 60 million imperial gallons per day, utilizing low-carbon intensive technology. The project aligned with the company's strategic goal to decouple water and power generation and significantly reduce the carbon intensity of water production by 2031.
• In June 2024, Veolia, through its subsidiary SIDEM, secured a contract valued at $320 million to engineer and supply key technology for the Hassyan seawater desalination plant in Dubai. This development followed the selection of ACWA Power as the preferred bidder for the project, which utilized the Independent Water Producer model. The facility was designed with a total capacity of 818,000 cubic meters per day, making it a critical component of the strategy to increase the emirate's desalinated water capacity. Veolia's role involved providing advanced reverse osmosis technology to ensure energy-efficient water production for two million people.

Key Market Players

• Green Water Treatment Solutions LLC
• Hyundai Engineering & Construction Co., Ltd.
• Fisia Italimpianti S.p.A.
• Utico FZC
• ACWA Power Co.
• Rekas Protech Water Treatment Equipments Co. LLC
• Fujairah Asia Power Company PJSC
• Mubadala Investment Company P.J.S.C.
• Cobra United Arab Emirates
• Emirates Water and Electricity Company P.J.S.C.
• Veolia Environnement S.A.

By Technology	By End Use Sector	By Region
Thermal Technology Membrane Technology	Industrial Municipal Others	Dubai Abu Dhabi Sharjah Rest of UAE

Report Scope:

In this report, the UAE Desalination Plant Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• UAE Desalination Plant Market, By Technology:

• Thermal Technology
• Membrane Technology

• UAE Desalination Plant Market, By End Use Sector:

• Industrial
• Municipal
• Others

• UAE Desalination Plant Market, By Region:

• Dubai
• Abu Dhabi
• Sharjah
• Rest of UAE