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Mideast likely to invest $100b in desalination projects

Industry experts say that private companies in the region will play a major role in investing in such projects, because governments will not be able to afford the cost of the projects without the private sector. Therefore, the private sector is urged to come forward to invest in the water desalination projects in the Middle East.

Waled Saleh of the United Nations University, said yesterday that given the fact that the infrastructure for water desalination is expensive (investments in desalination plants can match only those of oil and gas industry), the Middle East countries governments, especially those, which are not part of the AGCC, cannot afford the cost of desalination projects, and the private sector will have a role to play in developing such enterprises.

He said that the UAE has already taken such steps in awarding a water desalination contract in Fujairah to a private company from Korea under build-operate-and-transfer scheme. He added: "Public-private partnership should come into force more effectively in the booming desalination market. Private sector should have bigger share in the near future."

According to Dr Adil Ahmed Bushnak of the Saudi-based Dar At Taknia consultancy, while government investments into such projects are more academic, for the purpose of research, it will be the private sector, which will translate any R&D into products. Such joint investments are more feasible, where the role of the government will be directing, planning and encouraging investments rather than driving the process. The driver for the future R&D in the region will be huge privatised desalination plants, he said, adding that Saudi Arabia has already announced a big privatisation project in this field in the country, with another one coming next year.