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Desalination Industry in GCC: The Future of Water Security
MORDOR INTELLIGENCE
Desalination Industry Overview
•GCC Nations suffers from severe water scarcity due to:• Vast majority of desert land in which surface water rarely exist• Irregular and scanty rainfall ~ 100mm per year• High rate of evaporation due to extreme climate
•Despite scarcity of water supply, the demand of water in this region is growing at a high rate due to:• High rate of population growth due to high inflow of migrants. From
2005 to 2014, the population of GCC grew at a compounded rate of 3.4 % annually.
• Growing demand of water for industrial uses with rapid industrialization of the region
• Increasing business tourism and religious tourism especially during Holy period of Ramazan (Ramadan).
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Population of GCC Nations
Saudi Arabia United Arab EmiratesOman BahrainKuwait QatarGCC GCC Population Projection
Desalination Industry Overview
•Rising oil prices during late 1970s led to economic prosperity of the region. This was followed by huge industrialization and boom in construction sector. The region also witnessed rapid growth in desalination industry as huge investments were made to ensure ‘Water Security’ of the region.
•The initial desalination was done using thermal technologies like ‘Multiple Effect Boiling (MEB)’ and ‘Multi Stage Flash (MSF)’
•Owning to the success of MEB and MSF, there was huge expansion of desalination plants in early 1980s.
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GCC Desalination Capacity (m3/day)
Recent Developments in Desalination
Development of technology has led to improvements in the desalination processes. New technologies like Reverse Osmosis (RO), Electro-dialysis (ED) and Vapor Compression (VC) were being used to produce desalinated water from the sea.
Even after availability of new technologies, MSF and MEB dominate more than 75 % of production of desalinated water in GCC.
Currently, more than 80% of the water requirements of GCC is supplied by desalination plants.
Saudi Arabia and UAE are the leading producers of Desalinated water in GCC accounting for more than 70 percent of desalinated water produced.
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Percentage of Desalinated water production.
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contribution of desalination processes used in gcc
Problems with Current Developments
•Heavy reliance on thermal technologies like MEB and MSF and is affecting the environment of the GCC nations.
•Desalination through thermal technologies consume lots of energy. Valuable natural gases and petroleum is used to keep these plants running.
•These thermal powered plants emit lots of greenhouses gases as well as steam which is hampering the environment of that region. In fact all the GCC nations are in top 10 ranks in terms of per capital carbon dioxide emission.
•Brine management is another problem with desalination plants. Brine discharge is often a mixture of saline concentrate, along with thermal and chemically added pollutants. Brine discharge is affecting the aquaculture and fisheries in those regions
•Unwanted subsidies in desalinated water is leading to wasteful uses of the precious water of desalination plants. Current per capita consumption of water in GCC is around 2.5 times the world average.
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Metric ton of Carbon Dioxide per million person and World Ranking
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Future of Desalination Industry
•Although MEB and MSF dominate majority of the desalination process, there is marked expansion of desalination with RO and ED technologies which are much more environment friendly.
•As oil prices have crashed in the international market, the GCC (oil exporting) nations are facing fiscal and budgetary constraints in funding desalination projects. Thus governments are encouraging more involvement of private players in this industry.
•Last 15 years has experienced rapid growth of the private sector in this industry.
•Al Shuaibah Water and Power Company was the first private project in Saudi Arabia which is currently constructing desalination plant with a capacity of 226.6 MIGD.
•Currently, Saudi Arabia is considering privatizing its Saline Water Conversion Corporation (SWCC) so as to encourage participation of more private players.
Future of Desalination Industry
•Oman is planning to invest about OMR 1 billion boost water desalination sector. The upcoming projects include: Barka Independent Water Project (IWP) for 2018, Sohar IWP for 2018, Sharqiyah IWP for 2019, Salalah IWP for 2019 and Duqm IWP for 2019
•UAE and Saudi Arabia are considering non polluting desalination methods like Concentrating Solar Power (CSP) Desalination. As per Mordor Intelligence Studies, CSP Desalination is going to boom in next 10 years almost tripling its current production.
•Saudi Arabia is also considering use of nuclear energy for its desalination purposes. Recently Governments of Russian Federation and Saudi Arabia signed an agreement on cooperation in the field of nuclear energy which will benefit desalination industry.
Why Invest ??? Inelastic and Ever Increasing Demand for Water
Government Support for Private Players
High and Growing Profitability of the Sector
New and Energy Efficient Technologies
High Demand Supply Gap
No Substitute of Water
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the Desalination Industry in GCC . We monitor and analyze industry trends around the world, including in-depth analysis on market entry, market share and market size – from qualitative analysis to qualitative with market data.
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