GCC Desalination Market (2026-2036)

Desalination is the process of removing salts and other dissolved minerals from seawater or brackish water to produce fresh water for drinking, industrial, and other uses. The GCC desalination market covers the design, engineering, and construction of desalination plants, the supply of equipment, membranes, energy recovery devices, and consumables, and the operation and maintenance of plants in Saudi Arabia, the U.A.E., Kuwait, Qatar, Oman, and Bahrain. It includes seawater reverse osmosis, multi-stage flash, multi-effect distillation, and hybrid and other technologies used in municipal, industrial, and other applications. This report measures the market on a revenue basis, covering spending on plant construction, equipment, and services. The sale of desalinated water under water purchase agreements, water transmission pipelines, and wastewater treatment and reuse are analyzed in separate reports.

The GCC is the center of the global desalination industry in terms of both installed capacity and new investment. The six GCC countries have some of the lowest levels of renewable freshwater per person in the world, and groundwater resources have been heavily depleted, so desalinated seawater is the main source of drinking water for most of the population. Regional estimates suggest that the GCC accounts for roughly half of global installed desalination capacity and around 40% of desalinated water produced worldwide. Saudi Arabia is the largest desalination market in the world, and the Saudi Water Authority, formerly the Saline Water Conversion Corporation, operates more than 30 plants with a combined capacity of about 7.5 million cubic metres per day, while private IWPs add substantial further capacity.

The structure of the market has changed significantly over the past decade. Historically, most GCC desalination plants were built and operated by government utilities and used thermal technologies, such as multi-stage flash and multi-effect distillation, which were often combined with power plants to use waste heat. Today, most new capacity is procured through independent water project models, in which private developers finance, build, own, and operate plants and sell water to state offtakers under long-term water purchase agreements, typically for 25 years. Saudi Arabia's Sharakat, Abu Dhabi's Emirates Water & Electricity Company, Dubai Electricity and Water Authority, Etihad Water & Electricity, Oman's Nama Power and Water Procurement Company, and Kuwait's and Qatar's utilities are the main procurers.

Seawater reverse osmosis has become the dominant technology for new plants, since it uses much less energy than thermal desalination and can be powered by grid electricity, including solar power, rather than requiring co-located steam generation. Large SWRO plants such as Rabigh 3, Rabigh 4, Jazlah, and Shuaibah 3 in Saudi Arabia, each with a capacity of about 600,000 cubic metres per day, and Taweelah in Abu Dhabi are among the largest reverse osmosis plants in the world. Governments are also retiring or converting older thermal plants, as shown by the conversion of the Shuaibah 3 plant, which won the Desalination Plant of the Year 2025 award from Global Water Intelligence.

Plant design, engineering, and construction accounts for the largest share of the market by offering, reflecting the large capital investments in new plants. Operation and maintenance services account for a large and stable share, since the GCC has a very large installed base of plants that require continuous operation, maintenance, membrane replacement, and chemicals. Equipment, membranes, and consumables include high-pressure pumps, energy recovery devices, reverse osmosis membranes, ultrafiltration pretreatment systems, and chemicals supplied by companies such as Toray, DuPont, LG Chem, Energy Recovery, and others.

The market is served by developers and operators, engineering, procurement, and construction contractors, technology providers, and equipment and membrane suppliers. Acwa is the leading developer and operator in the region, and it won or was named preferred bidder for roughly two-thirds of GCC independent water projects in 2024. Other important developers include Engie, GS Inima, Marubeni, Sumitomo, and Metito, while Veolia and its Sidem subsidiary, Acciona, Suez, Doosan Enerbility, Fisia Italimpianti, Larsen & Toubro, Lantania, and IDE Technologies are major engineering and technology providers.

Saudi Arabia accounts for the largest share of the market and is also the fastest-growing country, supported by Vision 2030, large IWP programs, giga-projects such as NEOM, and the replacement of thermal plants. The U.A.E. is the second-largest market, followed by Kuwait, Qatar, Oman, and Bahrain. Project awards can vary significantly from year to year, and MEED expects 2026 to be a year of consolidation after a surge in Saudi awards in 2025, but the long-term need for new and replacement capacity remains strong.

Over the forecast period, the GCC desalination market is expected to grow steadily, supported by water demand growth, IWP programs, thermal-to-reverse osmosis conversion, and industrial expansion. At the same time, energy efficiency, renewable energy integration, brine management, digitalization, and the resilience of water infrastructure will become increasingly important.

Saudi Arabia is expected to account for the largest share of 50.0% of the market in 2026, mainly due to its position as the world's largest desalination market, its large IWP program, the replacement of thermal plants, and demand from giga-projects and industry.

Saudi Arabia is also projected to register the highest CAGR of 7.0% during the forecast period, driven by its continued IWP pipeline, thermal plant replacement, water transmission projects, and industrial demand.

The report profiles 15 companies, including Acwa, Veolia (Sidem), Acciona, Suez, Doosan Enerbility, Metito, Fisia Italimpianti, Larsen & Toubro, Engie, GS Inima, IDE Technologies, Toray Industries, DuPont, LG Chem, and Energy Recovery.

Under independent water project models, state offtakers such as Sharakat and Emirates Water & Electricity Company tender plants to private developers, which finance, build, own, and operate the plants and sell water under long-term water purchase agreements, typically for 25 years.