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$15.5bn needed to meet MENA desal demand

Region needs to add 2.7m cubic metres per day of capacity

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MENA is the hub of the world's fast-growing desalination market. Courtesy of AFP/Getty.
MENA is the hub of the world's fast-growing desalination market. Courtesy of AFP/Getty.

By Andy Sambidge

The desalination plant market in the MENA region is expected to attract investments worth $15.5bn over the next four years as water demand continues to rise, a new report has said.

It is estimated that the region needs to add about 2.7m cubic m/day of desalination capacity every year to meet the water demand.

"Considering this, the desalination plant market in the MENA, which experienced spectacular growth in recent years to emerge the largest market for desalination plants, can be expected to sustain its impressive growth momentum. In fact, it is likely to gain investments worth $15.5bn between 2009 and 2013," said analysts at Frost & Sullivan.

New analysis from the research company has revealed that the MENA desalination market earned revenues of $3.8bn in 2008.

“Though the current economic environment has delayed several investment decisions, the long-term drivers for the growth of desalination remain strong in the region as the gross domestic product (GDP) of most countries in the MENA region is expected to increase,” said Frost & Sullivan senior research analyst Vivek Gautam.

The rapidly growing population, fast-improving living standards, and rising concerns about climate change are likely to sustain the demand for desalinated water in this region, Gautam added.

The report said the market had attracted numerous new participants in recent years, intensifying competition, particularly in the small capacity plant segment.

Source: arabianbusiness.com

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