Desalination remains critical to meet MENA water requirements

IT IS ESTIMATED that the Middle East and North Africa needs to add about 2.7 million m³/ day of desalination capacity every year to meet the rising water demand in the region. MENA, which in recent years has emerged as the largest market for desalination plants, can be expected to sustain its impressive growth momentum. In fact, it is likely to gain investments worth $15.5 billion between 2009 and 2013. 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. Besides, the scarcity of fresh water resources are compelling governments and planning agencies to invest in enhancing desalination capacities to meet the soaring water demand. New analysis from Frost & Sullivan finds that the market earned revenues of $3.79 billion in 2008. Of this, 18.7 per cent or $710.0 million is the revenue for small-capacity plants (capacity less than 40 million litres per day) market. "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,"says Gautam. The market has attracted numerous new participants in recent years, intensifying competition, particularly in the small capacity plant segment. In such a packed market, the competitive advantage will rest with the plants that can better manage project risks and the associated costs.(the end)Nike