The Mena region is the world’s largest market for water and sewerage construction projects, according to GlobalData.

In a recent report, GlobalData said that it is tracking water and sewage construction projects with a total value of $390.6bn, which includes all projects from the early stages of pre-planning (announcement and study) through to the execution stage.

The Mena region accounts for the largest share of the global pipeline value, with 39.5% of the global total pipeline value, reflecting the region’s increasing dependence on the desalination of seawater, and the recycling of wastewater, for its supply of potable water.

Governments in the Mena region are investing heavily in water infrastructure to support long term water security and economic growth. In September 2023 the Crown Prince of Saudi Arabia Mohammed bin Salman announced that the kingdom will establish a global water organisation to enhance efforts to address water challenges.

The organisation, which will be based in Riyadh, will allow the exchange of expertise, while advancing technology, fostering innovation, and sharing research and development experiences. It will also promote the establishment and funding of high priority projects, thereby ensuring the sustainability and accessibility of water resources.

For the rest of the world, GlobalData says that economic weakness is expected to persist in 2024 and is likely to dampen investor confidence and the ability of governments, particularly in indebted developing markets, to finance large scale water infrastructure projects.

The problem of water scarcity is rapidly becoming a more pertinent global concern, with 2.4 billion people living in water stressed countries, as of October 2023 according to the United Nations.

It further estimates that freshwater resources per person have dropped by 20% over the past two decades, with the availability and quality of water deteriorating rapidly due to over abstraction of groundwater, pollution, and climate change.

Additionally, increased and recurring extreme weather events, such as droughts and floods, are stressing global ecosystems, thereby causing devastating consequences for global food security. This is expected to drive investment in water infrastructure projects at a greater pace over the long term, with countries attempting to offset the potential economic losses from climate change exacerbated water scarcity, which World Bank estimates suggest could be as high as 6% of global GDP.