05/03/2009

Water investment in UAE reaches $9 trillion

Dubai: About $9 trillion (Dh33.03 trillion) has been invested in the UAE's water industry over the last 25 years, an industry expert says. As the UAE is reported to be the world's third highest consumer of water per capita, this may not come as a surprise. Current consumption is between 1.85 and 2.12 billion cubic metres per day. Experts in the industry say that the typical per capita consumption in the UAE is 500 litres daily. "If you assume 2.1 billion cubic metres per day times 85 per cent, at a capital expenditure (capex) investment of around $5,000 per cubic metre (average capital costs of thermal distillation equipment) you come up with a figure of around $9 trillion invested over the past 25 years," Chip Harris, global director of desalination operations at Norwegian desalination company Aqualyng Holding told Gulf News. Also, in this region, hot drinks such as tea are the most consumed, according to Richard Hall, chairman of food and beverage consultancy, Zenith International. And tea, obviously, needs water. As the UAE's population was previously on the fast-track to increase by 1.6 per cent each year to house around four million people by 2025, it is clear that more investment would be needed. However, with the global economic crisis playing havoc with liquidity, business development and job security, the rate at which more people filter into the country is likely to slow. "At the rate, maintaining the consumption rate as quoted, the growth per year in desalination could be as high as one per cent of the current production level per year, or about $55 million per year as an average," Harris said. Desalination makes up more than 85 per cent of the total potable water consumption in the UAE.

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