Q&A: Middle East Water Sector with Lu'ay Khdeir, Mott MacDonald

1 Mar 2020
Q&A: Middle East Water Sector with Lu'ay Khdeir, Mott MacDonald

In conversation with: Lu’ay Khdeir, water sector leader and regional development director, Middle East, Mott MacDonald. Khdeir will be speaking at the Middle East Energy event in Dubai World Trade Centre (DWTC), 3-5 March

Evolving market

“A key emerging theme of the water market in the Middle East and North Africa (Mena) is the move towards public-private partnership (PPP) model for developing desalination projects through independent water projects (IWPs) and wastewater treatment through independent sewage treatment plants (ISTPs) – where the private sector is key to develop and deliver them on a concession basis.”

In addition to developing new projects in partnership with the private sector, Khdeir says the private sector will likely play a key role in existing water assets, particularly older infrastructure.

“For brown field assets, new projects are evolving on how to deal with existing assets reaching the end of their life, either through contracts to extend operation contracts or selling them off through initial public offers (IPOs).”

Khdeir says that establishing a wider water reuse market will also be a key trend in the region’s sector moving forward.

“Industries and utilities are seeking to use more of the available treated sewage effluent (TSE),” he says. “This will free more desalinated water for potable use in addition to saving more petro-dollars to benefit economies.”

 

Decoupling power and water production

The decoupling of power generation and water production is also emerging as the preferred option for many of the region’s utilities to develop water infrastructure through the rise of reverse osmosis (RO) membrane technology, replacing the energy-intensive thermal desalination technologies which dominated the sector since the 1970s.

Khdeir says this will facilitate the development of solar energy for providing power for RO plants. “[solar] was key in recent wins in desalination projects, particularly as an additional form of power for mega plants. It will continue to gain traction – mainly for remote and off-grid locations.”

“In addition to renewable energy, the diversification into other energy sources such as nuclear power will also gain more momentum to the decoupling trend.”

 

Opportunities

Unsurprisingly, Khdeir says that Saudi Arabia will offer water companies the most opportunities in 2020. “Saudi Arabia will still be the biggest market for water with more than $30bn of planned and un-awarded projects, followed by the UAE with close to $15bn. The rest of the GCC countries will also offer opportunities in 2020 and beyond.”

“As for the type of projects – water desalination will lead the sector followed by major tunnels, especially in Dubai – then wastewater treatment plants. The rest of the sector will be business as usual such as reservoirs and water tanks, pipelines and pumping stations.”

 

Efficiency drive

A central theme of the upcoming Middle East Energy Event will be increasing sustainability across the energy and utilities sector, says Khdeir.

“The carbon reduction footprint and improving efficiency are becoming the new norms and are going hand in hand with asset management as well as with digital transformation – they are all interrelated,” he says. “The main challenge is how to connect the three pillars of transformation – digital disruption, carbon management and reduction and asset management – to deliver more efficient water assets and less environmental impact.”

 

Energy & Utilities - Middle East and Africa Market, Outlook Report 2023.

This must-have report for industry players offers a thorough understanding of the latest developments, challenges, and opportunities in the region, supported by data, analysis, and expert insights. 

E&U Podcast

Subscribe to our Market Talk podcast for the latest on the key issues and trends in the energy and utilities sector

List your business

Create a business listing on the Energy & Utilities markeplace

Sign up for the FREE Energy newsletter

The latest news and analysis sent to your inbox.

Drop Us A Message
I have read, understood and consent to your Privacy Policy