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UAE water market forecast at $5.61bn by 2015

Water and wastewater sector to benefit from significant investment

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The UAE's water and wastewater market is set to more than double by 2015. (GETTY IMAGES)
The UAE's water and wastewater market is set to more than double by 2015. (GETTY IMAGES)

A new analysis of the UAE’s water and wastewater sector has found that the market recorded revenues of US $2.75 billion through 2011, with the market forecast to grow to $5.61 billion by 2015. The research, by Frost & Sullivan, suggests that population growth – of an annual 3.28 percent – and rapid economic development has put increasing pressure on existing water and wastewater resources.

The current total installed capacity for desalination in the UAE stands at 8.9 million litres per day (MLD), with the report’s writers anticipating that privatisation will increase the rate of new projects coming online. The government is also targeting 100 percent water connectivity to all UAE residents by the end of this year, boosting water distribution investment.

“The rise in oil prices facilitates investments in the infrastructure of water and wastewater projects. If oil prices remain firm, the UAE is likely to record surplus revenue, which can be utilised for economic diversification,” notes the report.

The UAE’s infrastructure industry grew by more than 3.3 percent through 2010, with cities including Dubai and Sharjah looking at ‘smart city’ projects, and the Northern Emirates recording significant real estate growth.

The research suggests that participants in the water market are likely to resort to competitive pricing to standout, with low product differentiation in the sector. UAE customers are said to be “highly price sensitive” and expect water treatment systems to be fully compliant with their needs and specifications.
 

 

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