Middle East Water Sector Poised For Massive Essential Investment

While the Middle East region faces the same challenges, the scale and required pace of development are far more pressing, as populations continue to grow at unparalleled speed. Water, above all, is a key area that is receiving special focus from governments across the entire region.

ÒThe countries of the Middle East have recognised that it is essential for them to work in close conjunction with the private sector to build a lasting infrastructure,Ó said Kathy Shandling, Executive Director of the International Private Water Association (IPWA). ÒIPWA is pleased to support the annual Middle East Electricity exhibition, which features a totally comprehensive showcase of companies operating in the desalination and waste water treatment industries. The region is set to spend a staggering amount - over US$120 billion - on water investments during the next 10 years as without this investment experts estimate that by 2050 the Middle East could face a severe water shortage and providing adequate amounts of safe water for drinking and sanitation could be an unsurmountable challenge. Water is also essential to the continued development of the tourism industry, which is becoming ever more vital to the economies of many Middle East countries,Ó continued Shandling.

Furthermore, it is estimated that the Middle EastÕs many building projects alone will consume in excess of 112 billion litres of potable water over the next two years, thus putting further severe pressure on groundwater reserves and existing desalination facilities.

ÒWith natural aquifers being so stretched, there is clearly a growing reliance on desalinated water, which currently accounts for over 50% of domestic water use,Ó said Sarah Woodbridge, Group Director Exhibitions, IIR Middle East - organisers of the annual Middle East Electricity exhibition. ÒWhile the Middle East is home to 5% of the global population, it has just 1% of the worldÕs renewable fresh water, which is why between 2005 and 2015, the Middle East and North Africa countries are committed to spend in excess of US$24 billion on desalination, with Saudi Arabia and the UAE together spending close to US$13 billion.Ó

In recent years Public Private Partnership (PPP) has been embraced by GCC countries including Saudi Arabia and Oman as a highly viable alternate economic solution to meet the rising demand for safe water - as a result of the involvement of world leaders from the water industry it also offers benefits such as cost savings, efficient facility management and environmental safeguarding.

The opening up of markets to PPP and the demand for increased water capacity has created huge business opportunities throughout the region, with major global companies expanding their operations in the Middle East. Among these, Middle East Electricity exhibitor General Electric, which has project commitments worth billions of dollars, is building a 24,600 sq. ft. facility in Dammam, Saudi Arabia. The centre, which significantly will include a water treatment laboratory, is scheduled to begin operation late this year.

Also in Saudi Arabia, a Japanese trade delegation recently visited the country to explore the prospects for developing water projects, focusing on "Japan Water Desk", which was established in 2005 to promote investment and technology transfer related to water resources from Japan to Saudi Arabia, dealing with all aspects of water resources, such as desalination, transmission and distribution, wastewater treatment and water re-use. Saudi ArabiaÕs existing desalination plants are not capable of meeting todayÕs needs as they are relatively old and the Kingdom's population has increased by 900% since the 1960Õs.

Middle East Electricity, one of the worldÕs most respected and influential events for the global energy industry, has a firm commitment to the regional energy industry and is supported by major international and regional bodies including the IPWA, EDS, UAE Federal Electricity & Water Authority (FEWA) and The UAE Ministry of Energy. Among the many products showcased at the event are desalination systems and equipment, pumps, waste water recycling systems, water filtration and purification equipment plus water treatment systems from leading regional and international companies.

ÒClearly, interest in water related products and solutions is at an all-time high,Ó added Woodbridge. Over 18,000 visitors to Middle East Electricity 2007 were specifically looking for companies involved in the water sector.Ó
Middle East Electricity Exhibition & Conferences takes place from 10-13 February 2008 at Dubai International Exhibition Centre.