Water underpins resilience, prosperity, and well-being across the GCC. To secure the region’s future, stakeholders are turning shared challenges into opportunities for sustainable growth.
A report co-authored by Boston Consulting Group (BCG) and the International Desalination and Reuse Association (IDRA) - Collective Action to Address Water Scarcity - shows how innovation, collaboration, and strong governance are helping the Middle East move from scarcity to strategy. Once viewed as a constraint, water is increasingly recognized as a cornerstone of economic and social resilience.
Interconnected Pressures, Integrated Action
Water scarcity is no longer a regional issue; it is a global one. Nearly 2 billion people still lack access to safe drinking water, and global demand could exceed supply by 40% by 2030. Climate change is intensifying extremes - from floods to prolonged droughts- placing additional stress on economies and ecosystems.
Across the GCC, policymakers are adopting integrated frameworks that balance fiscal stability, social protection, and environmental stewardship. Access to water is not merely an environmental concern; it is the foundation for public health, economic opportunity, and long-term stability.
Balancing Immediate Response and Structural Reform
The report identifies three root causes of scarcity: supply constraints, demand pressures, and limited resilience to shocks. It further outlines ten levers to address them across the value chain:
- Monitor and regulate groundwater usage
- Diversify water supply through alternative sources
- Reduce losses via modernized infrastructure
- Deploy decentralized water systems
- Ensure sustainable allocation using AI-powered frameworks
- Enhance efficiency through technology and behavioral change
- Advance public education and awareness
- Promote on-site treatment and circular reuse
- Improve resilience via climate-adapted strategies
- Adopt nature-positive and low-carbon solutions
Immediate efforts focus on expanding desalination and reuse while upgrading infrastructure through digital monitoring, IoT sensors, and AI-based leak detection. Over time, decentralized systems and nature-based solutions embed long-term sustainability.
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Ten Levers to Transform Water Systems
Regional Models of Transformation
Across the Middle East, practical models are taking shape. In Saudi Arabia, the SWPC public-private partnership framework has scaled desalination and wastewater capacity through transparent tendering, robust governance, and innovation-driven financing - achieving record-low tariffs while improving efficiency.
In the UAE, TAQA Water Solutions’ Al Wathba Wetland project demonstrates how circular reuse and nature-based irrigation can enhance biodiversity and advance net-zero goals. These cases show how sustainability and growth reinforce each other.
Collaboration as the Foundation of Progress
To accelerate impact, the report highlights six collaboration enablers:
- Co-invest in joint R&D and commercialization. Industry players can expand investment in cost-effective, energy-efficient technologies through both internal R&D and joint initiatives with research institutions.
- Align financial incentives with strategic outcomes. Governments can deploy targeted subsidies and tax incentives for high-impact technologies, while financing institutions provide blended capital tools.
- Standardize to create demand certainty. Governments can design holistic standards for water production, distribution, and usage. Timely adjustments as technology improves are also important.
- Develop integrated water policy frameworks. Governments can establish comprehensive water governance models that integrate resource planning, infrastructure investment, and environmental policy.
- Foster public-private communication. Stakeholders can enable effective policy and adoption through continuous feedback between technology providers and government.
- Mobilize industry-led education alliances. Industry players can coordinate public-facing campaigns to communicate the value of sustainable water technologies.
These mechanisms ensure that solutions are scalable, inclusive, and locally relevant. When governments, industry, and communities collaborate, innovation moves from promise to impact.
Charting a Resilient Future
The GCC is transforming water scarcity into a driver of collaboration and innovation. By embedding circularity, technology, and shared responsibility into national strategies, the region is building a sustainable foundation for economic diversification and social well-being.
