Around US $117 billion (AED430 billion) investment is expected in the Middle East market between 2005 and 2010 according to Gulf Capital.
Around US $117 billion (AED430 billion) investment is expected in the Middle East market between 2005 and 2010 according to Gulf Capital. This represents a 59% increase in investment compared to the previous decade.
Saudi Arabia is the largest market for water and wastewater in the region. Nearly $28 billion, 24% of the regions total, is expected to be invested in the sector over the next 10 years, of which around $6 billion will be allocated for building new desalination water plants, the firm reports.
Gulf Capital recently acquired a 60% stake in Metito Group, the largest Arab water engineering and concession company. This was seen as an indication of the trend towards financial institutions positioning themselves to take advantage of the upcoming moves for privatisation in the Middle East's water sector.
Imad Ghandour, head of strategy and research at Gulf Capital stated: "As water assets move from public ownership into private hands, it is expected that competition will evolve into more than the basic commodity of water.
"Perfecting the operational management and maintenance of the water assets, reducing waste and non-revenue water, revenue management, and optimising the financial structuring are some of the skills that will be needed to remain competitive over the long-term," he added.