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New Market Study Published: United Arab Emirates Water Report Q1 2014

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2013-12-10 14:21:08 - Fast Market Research recommends "United Arab Emirates Water Report Q1 2014" from Business Monitor International, now available

A growing economy, high water demand and decreasing water supply is putting the UAE's water infrastructure under some pressure, increasing the need to invest and maintain current infrastructure to avoid a shortfall in the future. However, we note that government support is strong, and that new legislations and targets are regularly aiming to improve efficiencies as well as to encourage investment.
The UAE water sector is well-financed and has large growth potential. The nation's average water consumption ranks 82% above the global average and is expected to grow by 30% by 2030.

The country is also a leader in the field when it comes to water system development and the activity levels of projects and investment are likely to remain high. Rapidly

increasing demand and limited supply mean that the UAE needs to continue focusing on development and conservation for the coming years.

Full Report Details at
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New emphasis has been put on efficiency, through the government's new targets to reduce wastewater in agriculture and park irrigation. The finite natural water resources and ongoing economic and cultural growth in the UAE have elevated the importance of modernising and expanding the water sector for both the government and the private sector.

Legislation was also announced in 2013 aimed at increasing supply and improving efficiency. Emirates are focusing on increasing desalination capacity, improving technology and modernising, as well as making a strong push to reduce wastewater.

1 Key projects continue to progress and the announcement of a unified water strategy and system among the Gulf nations will support growth in the sector. These developments are vital to bolster the country's struggling water systems, particularly as the UAE Federal Electricity and Water Authority (FEWA) expects overall water consumption to grow by nearly 30% by 2030. 2 BMI see opportunities for investment in the water supply, energy, technology and construction sectors as the expansion of these vital utilities is a key priority, and the government and private sector are both willing and able to support investment and growth.

Recent developments include:

* US water technology company, Xylem, has been awarded a contract to build a dissolved air flotation pre-treatment system in the UAE, reports Water Technology. The system will be installed at the Fujairah Independent Water and Power Plant. It will produce 136,000 cubic metres of water on a daily basis. The system will help to provide clean, potable water to Abu Dhabi and the east coast of the country.
* Dubai Electricity and Water Authority (DEWA) has launched a new water pipeline project worth AED30mn (US$8.17mn) in the town of Hatta. The project includes planning and laying of water distribution pipes, ranging in size from 100 to 450 millimetres in diameter, over a total length of 30 kilometres.
* The Minister of Water and Environment, Rahid Ahmed be Fahd, introduced a law in early July 2013 that mandated the obligatory rationalization of water and power use for all residents including individuals, corporations and over 3,000 government agencies. Officials state that this could reduce water consumption by up to 30% and will be enacted in 2014.
* In early June 2013 the Gulf Corporation Council announced that it was drafting a unified water strategy for all member states. The M Power station in Dubai, was inaugurated for use in Q3 2013. The plant will have a capacity of 80,000m3 of water per day, and the Furaijah plant will expand capacity by 137,000m3/ day and have a total capacity of 592,000 m3/day.
* In January 2013, Spain's Acciona won a US$190mn contract to expand the Fujairah 1 IWPP. The company will design, build and operate the expansion for a seven-year period, with a completion date set for 2015.

Key BMI forecasts include:

* Water extraction will decline by 0.2% y-o-y during 2014, reducing the total volume of water extracted to 1,575.9mn cubic metres.
* Mains water consumption will see a 2.0% decline y-o-y in 2014, shrinking from 1,474.8mn cubic metres in 2013 to 1,445.8mn cubic metres in 2014.
* Total wastewater will fall of 0.6% in 2014 with only 507.4mn cubic metres discharged into the networks.

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

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