Climate and cost: the Gulf’s water scarcity challenge

• Water stressed regions
• High water consumption
• Increasing operational costs

Over the past 18 months, Saudi Arabia has set up a Global Water Organisation, established a stand-alone Saudi Water Authority and presided over the One Water Summit in Riyadh.

At the summit on December 5, Crown Prince Mohammed bin Salman called for “collective action” to address water scarcity in the region and around the world.

These Saudi efforts are among growing ones by the Gulf public and private sectors to confront a challenge that impacts countries here especially hard and is bound to get worse amid a changing climate.

According to 2019 data from the World Resource Institute, four of the five most water-stressed countries in the world, and 16 of the top 25, are in the Middle East. Bahrain led the unfortunate ranking, followed by Cyprus, Kuwait, Lebanon, Oman and Qatar. 

A whopping 83 percent of residents of the Middle East and North Africa are vulnerable to  “extremely high water stress,” the Washington-based think tank found.

The wealthier GCC states compound this dearth of resources with some of the highest rates of water consumption in the world, often above 500 litres per person per day compared to around 120 litres in similarly affluent nations like Germany, according to the World Bank. 

And yet, because of their success in building expensive desalinisation infrastructure, Gulf residents don’t quite feel the pinch of water scarcity as one would think, at least not yet, according to David Pryce, a veteran environmentalist in the UAE.

“Currently the GCC population is around 0.5 percent of the global population and yet 57 percent of the world’s desalination plants are to be found in this region,” he tells AGBI. “Over the next few years, the GCC governments have to increase supply by some 40 percent just to keep up with demand.”

Growing populations, rising urbanisation and a climate change-induced mix of less rainfall and higher temperatures guarantee the problem will only worsen for the environment and society, as well as for businesses, especially in water-intensive sectors such as agriculture, manufacturing and hospitality.

Naseem Zeitoon/Reuters

“Water scarcity often translates into increased operational costs,” says Hazem Gouda, an associate engineering professor at the University of Wollongong in Dubai. 

“Companies might need to invest in water-saving technologies, expensive desalinated water, or specialised infrastructure for water reuse,” he says. “These costs can squeeze margins, particularly for small to medium enterprises.”

A farm relying on traditional irrigation may struggle with falling yields unless it finds the money to invest in hydroponic farming or water recycling systems. 

“Hotels and resorts must balance guest satisfaction with sustainable practices,” Gouda says. 

“Using water-efficient fixtures or integrating greywater recycling systems and low flush toilets can reduce costs, but it also demands a commitment to sustainability and innovation.”

As water scarcity deepens, it might repel investors from the most effected sectors, exacerbating the problem, Gouda says.

According to figures shared with AGBI by A1RWater, a UAE water manufacturer, operating costs for water-intensive industries in the Gulf have risen 30-40 percent since 2020, and 40 percent of regional businesses have reported water-related disruptions. 

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Unsurprisingly, efforts have been underway in the GCC, which the World Bank called “ambitious and innovative” in an April blog.

They mostly revolve around bringing down the costs of desalination, reducing water waste and reusing treated sewage water.

The UAE already derives 42 percent of its water from desalination, while Dubai recycles 90 percent of its wastewater, according to Gouda.

The Emirates’ Water Security Strategy 2036 sets a goal of bringing down consumption nationwide by 21 percent. A year ago, the Gulf state separately launched the Mohamed bin Zayed Water Initiative to speed up innovative answers to the water crisis.

Private businesses are also coming up with new products.

Abu Dhabi-born A1RWater has developed technology to convert air humidity into drinking water and recently opened a facility in Dubai that can produce upwards of 100,000 litres per day. 

David Pryce and his firm Earth Genesis are now focusing on reducing waste from inefficient commercial toilet flushes.

“In the UAE alone … a conservatively estimated 235 billion litres of potable water is flushed away annually,” he tells AGBI. “We’re slowly gaining traction in our drive to install more efficient toilets, going from 7-10 litres per flush to well under 2 litres per flush.” 

To sustain this momentum, Gulf authorities will have to embrace deeper regional cooperation on water issues, adopt more robust water governance policies, make sure to enforce them, and enhance awareness among residents, among other steps. 

“Tackling water scarcity in the Gulf region demands a comprehensive strategy that blends technology, policy, and cultural shifts,” says Gouda.