
Market briefingOctober 2026
MENA Water Market Briefing, October 2026
Turbid seawater stops most of Israel’s large desalination plants, Jordan’s water carrier wins United States financing approval, Riyadh East draws five bids and Tunisia’s Sousse plant comes on line.
This edition covers September 2026. The month’s largest supply event was the shutdown of most of Israel’s large desalination plants by turbid seawater in the first week, which also cut bulk supply to Gaza and the West Bank. Jordan’s national water carrier gained United States financing approval but had not reached financial close. In Saudi Arabia, activity centred on sewage treatment and operations contracts. Tunisia’s Sousse desalination plant came on line, and a section of Libya’s Man-Made River was brought back into service. We found no report of a strike on a Gulf desalination plant in the month.
Supply shocks and security
On 1 September five of Israel’s six large Mediterranean desalination plants were shut because of unusually turbid seawater, with only Hadera running; the authorities cut supply to farms in the Negev and asked municipalities to stop public watering, while household supply continued.1 A preliminary finding by researchers at Israel Oceanographic and Limnological Research pointed to a bloom of microscopic algae.2 The Energy Minister, Eli Cohen, said on 2 September that the shutdown was “mostly behind us”; on 7 September the Ashkelon and Ashdod plants were still offline and the state had decided to buy a dedicated stock of membranes.7 8 Globes reported on 24 September that supply had been drawn from groundwater and the Sea of Galilee, where the level was the lowest since 2018.9
The shutdown reached Palestinian supply. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) reported that it reduced the water available to about 1 million people in Gaza who rely on the Israeli grid, and cut bulk supply in the West Bank for about three days.10 11 On 25 September OCHA said the three lines from Mekorot, Israel’s national water company, were supplying about 40% below contracted quantities because of algae at Israeli plants, and that the Al Basa desalination plant in Deir al Balah was running at reduced capacity.12 The Palestinian Water Authority said on 17 September that it had begun a partial rehabilitation of the Sheikh Ajleen wastewater plant in Gaza City with about US$2 million from the International Committee of the Red Cross (ICRC), and was seeking 15 million euros from KfW, the German development bank, for a second phase.13
In the Gulf, we found no report of a strike on a desalination plant in September; that is a negative finding from the sources we could read. Shipping through the Strait of Hormuz stayed thin: Agence France-Presse (AFP), citing Kpler data, counted six commodity vessels on 2 September against a 10-day average of about 13.14 A law firm’s note of 22 September put reported war-risk premiums at 1% to 5% of vessel value, against about 0.125% to 0.25% before the conflict.15
Because five desalination plants stopped working, we activated our entire natural water system, which brings us to about 90% of our summer supply capacity.
Saudi Arabia: treatment and operations lead
The Saudi Water Partnership Company (Sharakat), the state procurer of water partnerships, received five bids for the Riyadh East independent sewage treatment plant, a 25-year build-own-operate-transfer concession for 200,000 m³ a day, expandable to 400,000 m³, with commercial operation targeted for 2030.16 17 In early September the National Water Company (NWC) signed a 15-year long-term operation and maintenance contract worth 1.3 billion Saudi riyals (SAR) for nine sewage plants. Zawya named the consortium as Armada and Zhangzhou United Waters;18 the Shanghai-listed Jiangsu United Water Technology had disclosed in July that it leads the package with Armada Holding.19
Larger partnerships waited. MEED reported on 8 September that Saudi water contract awards came to US$3.94 billion by early September, against US$10.7 billion in 2025 (MEED Projects data), that the developer’s agreement for the Riyadh to Qassim water transmission pipeline was still unsigned, and that the Arana and Hadda sewage plants had not reached their targeted financial close.20 On 6 September the utilities system serving the Red Sea tourism destination, built and run by a consortium led by ACWA and including three seawater reverse osmosis plants, reached commercial operation.21 Veolia announced on 1 September three non-binding memoranda of understanding in the kingdom: with ACWA on desalination, with the mining company Ma’aden and with Khazeen.22
Elsewhere in the Gulf
Bahrain’s Tender Board accepted for evaluation two price offers for the Sitra independent water and power project (IWPP), from ACWA and the Abu Dhabi National Energy Company (TAQA), and said price would be the main criterion.23 Zawya, citing a source, reported on 15 September that the Electricity and Water Authority (EWA) was expected to award the project in the fourth quarter.24 In Abu Dhabi, the Emirates Water and Electricity Company (EWEC) forecast on 21 September that reverse osmosis will supply more than 95% of its water production by 2035.25 We found no water award in Kuwait, Qatar or Oman in September.
Jordan, Iraq and Syria
The board of the United States International Development Finance Corporation (DFC) approved on 16 September a loan to the National Carrier Project Company and political risk insurance for its investors, Meridiam and Suez.26 3 Jordan News, citing the DFC, put the loan at up to US$1 billion and the insurance at up to US$800 million, and reported that the cabinet had approved incentives and exemptions for the project in the Aqaba Special Economic Zone in mid-September.4 ION Analytics reported that the project was still working towards financial close, and InfraPPP World that water supply is scheduled to start in 2030.3 27 The Ministry of Water and Irrigation declared Jordan’s dams ready for the rainy season on 3 September.28
Iraq’s Ministry of Water Resources said on 4 September, according to 964 Media, that it will pay for water projects under its framework agreement with Turkey with a daily allocation of oil rather than cash, and that six water-harvesting dams are planned in Nineveh, Karbala, Anbar and Muthanna.29 On 15 September the ministry put national reserves above 31 billion m³ and activated a flood operations room ahead of a forecast wet season.30 31
In Syria, a World Bank procurement plan dated 22 September for the Syria Emergency Water Security and Resilient Services Project lists the rehabilitation of the Ain Al-Zarqa supply system, the Upper Orontes treatment plant serving Homs and Hama, and the Adra wastewater plant in Damascus.32 The Energy Minister inaugurated two rehabilitated water stations in the Idlib countryside on 6 September, which the ministry said restore supply for about 430,000 people.33 ACWA and the Water Transmission Company signed a technical services agreement with the ministry and the consultancy Fichtner to study desalination and transmission options; it is a study, not an award.34
North Africa: plants, loans and repairs
Tunisia’s Sousse seawater desalination plant entered effective operation on 28 September at 50,000 m³ a day, about eight years after launch, at an estimated cost of 132 million Tunisian dinars (TND).5 The main from the Zarzis desalination plant failed for a second time on 15 September, disrupting supply in Gabès, Médenine and Tataouine.35 The African Development Bank (AfDB) signed a loan of 111.5 million euros on 22 September to the national water utility, the Société Nationale d’Exploitation et de Distribution des Eaux (SONEDE), for the Greater Tunis network,36 and the European Union delegation said a SONEDE performance programme it supports had saved 5 million m³, about a third of its target for 2029.37 Commissioning of the Mellègue 2 dam, announced for September, was not confirmed in the sources we read.38
In Egypt, a government document reported by Al Borsa and relayed by Enterprise on 22 September lists 16 public-private partnership (PPP) projects worth US$3.08 billion, including a US$1 billion desalination plant at Suez and a US$800 million plant at Port Said said to be out to tender; we found no official tender notice.39 The European Bank for Reconstruction and Development (EBRD) disclosed a planned equity investment of up to US$32.1 million in RWD Investments, the desalination platform of Hassan Allam Utilities.40 The electricity and planning ministers discussed on 25 September using power-plant sites for seawater desalination, at the stage of preliminary feasibility studies.41
The OPEC Fund for International Development approved US$150 million on 16 September towards a new dam in Morocco, which it did not name.42 Algeria’s Minister of Hydraulics asked on 24 September for faster delivery of an emergency drinking-water programme of 23 billion Algerian dinars launched in mid-August.43 In Libya, the National Development Agency and the Man-Made River Authority marked on 17 September the reactivation of the Qardabiya-Sadada section of the Man-Made River system, out of service for more than 13 years.44
Water resources and policy
Morocco’s dams held 65.51% of capacity on 1 October, against 67.50% on 1 September and 32.68% a year earlier, according to the ministry’s daily bulletin as reported by Le360.45 Istanbul’s reservoirs stood at 38.03% on 18 September, against 33.49% on the same date in 2025, on data from the Istanbul Water and Sewerage Administration (ISKI).46
On the Nile, Egypt’s water minister, Hani Sewilam, set out Egypt’s case against unilateral operation of the Grand Ethiopian Renaissance Dam on 21 September, and Ethiopia’s Ministry of Water and Energy rejected his remarks.47 48 President Abdel Fattah al-Sisi said on 29 September that diplomacy on the dam would not come “at the expense of Egypt’s existence and its people”.49 We found no change to water tariffs or water law in the Gulf Cooperation Council (GCC) countries in September.
The largest tenders of September
Water tenders published in September with the largest stated estimates or scope, from our Live tenders tracker and procurers’ own notices, with their deadlines, ranked by stated value and then by scope. Estimates are as stated in the notices; most notices outside the Maghreb state none.
- 2 NovemberMorocco, Directorate of Hydraulic Development: hydromechanical and electromechanical equipment for the Ribat El Kheir dam, Sefrou province; MAD 262.74 million including tax.6
- 21 OctoberMorocco, same directorate: drilling, grouting and drainage works for the Bou Khemis dam, Khemisset province; MAD 167.81 million.50
- 26 OctoberMorocco, same directorate: hydromechanical and electromechanical equipment for the Taghzirt dam, Beni Mellal province; MAD 136.58 million.51
- 4 NovemberMorocco, National Office of Electricity and Drinking Water (ONEE): extension of the El Hachef treatment plant, the first lot of a scheme to secure Tangier’s drinking water; MAD 118.2 million.52
- 24 NovemberTunisia, SONEDE: design, construction and six months’ operation of two brackish-water reverse osmosis plants of 2,000 m³ a day each, at Blidet and Degueche; budget of TND 60.37 million for the two lots in the data of the national e-procurement portal (TUNEPS), not shown on the notice page.53
- 16 NovemberJordan: prequalification for the rehabilitation, expansion and operation of the Shallala wastewater plant, under an EBRD project with a total cost of US$68.3 million; the EBRD loan of up to US$55 million was pending approval.54 55
- 5 NovemberSaudi Arabia, Saline Water Conversion Corporation: first stage of a two-stage competition to use existing assets of the Shuaibah plant (phase II) for a reverse osmosis plant producing water for agriculture, 30 months; no value stated.56
- 9 NovemberTurkey, Mersin Water and Sewerage Administration (MESKİ): retender for two wastewater treatment plants and a deep-sea outfall, 1,460 days; no value stated.57
- 18 NovemberBahrain, Ministry of Works: about 31 km of sewers for 1,173 plots in Bani Jamrah, 30 months; no value stated.58
In brief
- 1 SepEgyptEgypt said it had set up a US$100 million mechanism for studies and projects, including dams, in southern Nile Basin countries.59
- 8 SepUnited Arab EmiratesFirst Abu Dhabi Bank set a blue finance target of 100 billion United Arab Emirates dirhams within its existing sustainable finance commitment.60
- 10 SepYemenSaudi and French-funded projects worth 7.4 million Saudi riyals were launched to improve water systems in Taiz governorate.61
- 19 SepEgyptThe electricity minister discussed with the Belgian firm Hydrovolta a proposal to desalinate 10 million m³ a day by 2050; no contract was reported.62
- 24 SepPalestineThe British government announced an £88 million package for Gaza and the West Bank, including emergency water trucking for 150,000 people.63
- 24 SepIraqThe environment minister gave institutions no more than a year to finish projects against pollution of the Tigris and Euphrates.64
- 28 SepMediterraneanMinisters of the 43-member Union for the Mediterranean adopted a water declaration in Rome and launched the Rome Initiative on Water, according to press reports.65
- 29 SepJordanThe water minister said Jordan had cut water losses by 10 percentage points over four years.66
What to watch
- 4 November 2026Approval date shown by the EBRD for its loan of up to US$55 million for the Shallala wastewater plant in Jordan.55
- Fourth quarter 2026Award of Bahrain’s Sitra independent water and power project expected, according to a source cited by Zawya.24
- 5 January 2027Bids due for the expansion of Oman’s Al-Ansab and Al-Amerat sewage treatment plants as a public-private partnership, according to MEED.67
- 2030Start of water supply from Jordan’s national water carrier, as scheduled; commercial operation targeted for the Riyadh East sewage plant.27 16
Next edition: November 2026, covering October 2026. Figures are as the cited sources stated them on the dates given and are not revised after publication; confirm against the primary source before relying on them. Earlier editions are in the briefing archive.
Header photo: an industrial facility in Libya, seen from above. abdo alshreef, via Pexels (Pexels licence).
Sources
67 references
- The Jerusalem Post, “Water restrictions continue into second day as most Israeli desalination plants shut down again”, 1 September 2026.
- Ynetnews, “Desalination crisis explained: what shut the plants, and could Israel run out of water?”, 1 September 2026.
- ION Analytics, “Meridiam team secures US DFC’s backing for Jordan water PPP”, 23 September 2026.
- Jordan News, “US approves $1 billion loan for Jordan water project”, 23 September 2026.
- Business News (Tunisia), “Sousse : après huit ans d’attente et plusieurs reports, la station de dessalement entre enfin en service”, 6 October 2026.
- Morocco public procurement portal, “Travaux de réalisation des équipements hydromécaniques et électromécaniques du barrage Ribat El Kheir dans la province de Sefrou (96/2026/DAH)”, September 2026.
- Ynetnews, “‘Once-in-30-years phenomenon’: energy minister says desalination crisis nearly over”, 2 September 2026.
- Calcalist (Ctech), “Israel’s desalination crisis could last weeks as authorities await algae test results”, 7 September 2026.
- Globes, “Desalination plant shutdown exposes precarious reserves”, 24 September 2026.
- UN OCHA, “Humanitarian Situation Report, 4 September 2026”, 4 September 2026.
- UN OCHA, “Humanitarian Situation Report, 11 September 2026”, 11 September 2026.
- UN OCHA, “Humanitarian Situation Report, 25 September 2026”, 25 September 2026.
- WAFA (Palestinian news agency), “Efforts underway to restore Gaza’s Sheikh Ajleen treatment plant to curb wastewater risks”, 17 September 2026.
- AFP via L’Orient Today, “Gulf shipping traffic via Hormuz below 10-day average, data shows”, 3 September 2026.
- Lester Aldridge LLP via Mondaq, “Strait of Hormuz: current situation and implications for marine insurance”, 22 September 2026.
- Saudi Water Partnership Company (Sharakat), “Sharakat announces receipt of five competitive bids for the development of the Riyadh East ISTP project”, September 2026.
- Zawya Projects, “Saudi Arabia receives five bids for Riyadh East sewage treatment PPP project”, 8 October 2026. Also Gulf Daily News, 29 September 2026.
- Zawya / TradeArabia, “Saudi-Chinese consortium wins $348mln sewage plants maintenance deal”, 3 September 2026.
- Jiangsu United Water Technology (Shanghai Stock Exchange 603291), announcement 2026-034, published in Shanghai Securities News, “Investment in Saudi Arabia municipal sewage treatment plant long-term operation and maintenance contract package 10”, 11 July 2026. In Chinese.
- MEED, “Saudi water sector hits sharp slowdown”, 8 September 2026. Award totals are MEED Projects data, not an official statistic.
- ACWA, “Acwa-led consortium reaches commercial operation at The Red Sea, the world’s largest off-grid renewable utilities system”, 6 September 2026.
- Veolia, “Saudi Arabia: Veolia signs three strategic agreements to accelerate the Kingdom’s environmental security”, 1 September 2026.
- Gulf Insider, “Sitra’s big power project: two in the race”, 5 September 2026.
- Zawya Projects, “Bahrain expected to award Sitra IWPP in Q4 2026”, 15 September 2026.
- TradeArabia, “EWEC forecasts 45pc drop in power, water emissions by 2035”, 21 September 2026.
- US International Development Finance Corporation, “DFC announces more than $8 billion in investments to fuel American economic and national security interests”, 16 September 2026.
- InfraPPP World, “US$1.8 billion financing package approved for Water Carrier Project in Jordan”, 28 September 2026.
- Jordan News, “Jordan’s dams ready for upcoming rainy season”, 3 September 2026.
- 964 Media, “Iraq paying for Turkish water projects with daily oil allocation”, 4 September 2026.
- 964 Media, “Water reserves above 31 billion cubic metres as inflows rise, ministry says”, 15 September 2026.
- 964 Media, “Iraq activates flood operations room ahead of winter”, 15 September 2026.
- World Bank, “Syria Emergency Water Security and Resilient Services Project: Procurement Plan”, 22 September 2026.
- SANA (Syrian state news agency), “Rehabilitated water stations to serve 430,000 people in Syria’s Idlib countryside”, 6 September 2026.
- Gulf Daily News / TradeArabia, “Acwa-WTCO consortium partners with Fichtner on Syria water sector”, 8 September 2026.
- La Presse de Tunisie, “SONEDE : nouvelles perturbations de l’approvisionnement en eau dans trois gouvernorats”, 15 September 2026.
- African Development Bank, “African Development Bank provides $240 million to modernize SONEDE’s drinking water network and upgrade the Tunisian Chemical Group”, 24 September 2026.
- La Presse de Tunisie, “Programme d’amélioration des performances : la Sonede économise 5 millions de mètres cubes d’eau”, 25 September 2026.
- Webdo, “Barrage-réservoir de Saïda : à quoi servira ce nouveau projet à 214 millions de dinars”, 7 October 2026. States that the Mellègue 2 commissioning “était annoncée pour septembre 2026”.
- Enterprise, “FinMin prepares USD 3 bn worth of projects across desalination, wastewater treatment and electricity”, 22 September 2026. Reports a government document seen by Al Borsa.
- EBRD, “RWD Investments BV, project summary document 56502”, disclosed 22 September 2026.
- State Information Service (Egypt), “Electricity, planning ministers discuss using power plants for seawater desalination”, 25 September 2026.
- OPEC Fund, “OPEC Fund approves US$645 million in new financing”, 16 September 2026.
- Algérie360, “Eau potable : un programme d’urgence de 23 milliards de DA accéléré avant les pluies”, 27 September 2026. Relays a Ministry of Hydraulics statement on the meeting of 24 September.
- Libya Herald, “Reactivation of the Qardabiya-Sadada section Man-Made River system after a 13-year hiatus”, 18 September 2026.
- Le360, “Barrages. Légère décrue en septembre mais des réserves conséquentes: le bilan bassin par bassin”, 2 October 2026. Citing the daily bulletin of the Ministry of Equipment and Water.
- Daily Sabah, “Istanbul dam levels fall below 40% for third time in decade”, 18 September 2026.
- The National, “Egypt sets out new case against Ethiopia in Nile dam dispute”, 21 September 2026.
- Euronews, “Ethiopia’s army chief accuses Egypt and Sudan of backing armed alliance seeking to oust Abiy Ahmed”, 27 September 2026. Reports the Ethiopian ministry’s reply.
- Daily News Egypt, “Al-Sisi: Egypt committed to diplomacy on Ethiopian dam, but water security is non-negotiable”, 29 September 2026.
- Morocco public procurement portal, “Travaux de forages, injections et drainage du barrage Bou Khemis dans la province de Khemisset (87/2026/DAH)”, September 2026.
- Morocco public procurement portal, “Travaux de réalisation des équipements hydromécaniques et électromécaniques du barrage Taghzirt dans la province de Beni Mellal (95/2026/DAH)”, September 2026.
- Morocco public procurement portal, “Renforcement et sécurisation de l’AEP de Tanger et ses environs par l’extension de la station de traitement El Hachef, lot 1 (36/DAM/ET/2026)”, September 2026.
- TUNEPS (Tunisia), “AO 16-2026, conception et réalisation clé en main et exploitation de deux stations de dessalement des eaux saumâtres, Kébili et Tozeur”, published 28 September 2026. Lot budgets (TND 30,703,791 and TND 29,667,779) from the portal’s public data, not the notice page.
- EBRD Client E-Procurement Portal, “Jordan: Shallala Wastewater Treatment Plant Rehabilitation and Expansion Works including Operation and Maintenance (invitation for prequalification)”, 28 September 2026.
- EBRD, “Project summary document 56399 (Shallala wastewater)”, read 18 October 2026.
- Etimad (Saudi government procurement portal), “Project to maximise the use of the existing assets of the Shuaibah plant (phase II), competition 204902”, 29 September 2026. In Arabic.
- ilan.gov.tr (Turkey), “2 adet atıksu arıtma tesisi inşaatı ve 1 adet derin deniz deşarjı inşaatı ihale edilecektir”, 21 September 2026.
- Bahrain Tender Board, “Construction of sewer scheme in Bani Jamrah, blocks 531, 537, 545, 539, 543 and 551 (464/2026/BTB)”, 30 September 2026.
- Daily News Egypt via Zawya, “Egypt establishes $100mln fund for water, dam projects in southern Nile Basin states”, 2 September 2026.
- First Abu Dhabi Bank, “FAB sets AED 100 billion blue finance target and becomes first bank in the MENA region to join UN Sustainable Blue Economy Finance Principles”, 8 September 2026.
- Yemen Monitor, “Saudi Arabia and France launch water project in Taiz worth 7.4 million riyals”, 10 September 2026.
- Daily News Egypt, “Belgian firm Hydrovolta discusses 10-million-cubic-metre desalination project in Egypt”, 19 September 2026.
- UK Government (FCDO), “UK announces major package of support for humanitarian relief and early recovery in Gaza”, 24 September 2026.
- 964 Media, “Ministries given a year to clean up the Tigris and Euphrates, minister says”, 24 September 2026.
- Impakter, “Mediterranean water ministers launch Rome Initiative for 2030”, 30 September 2026. Also Renewable Matter, 30 September 2026. The declaration text itself could not be opened.
- Jordan News, “Jordan cuts water losses by 10 percentage points”, 29 September 2026.
- MEED, “Teams prepare bids for Oman PPP wastewater project”, 21 September 2026.
Numbered references are linked from the superscript markers in the text. Figures without a marker come from the sources above as compiled in the site methodology.