The United Arab Emirates and Saudi Arabia signed an $8.4 billion joint venture agreement on August 30 to build the world largest solar-powered water desalination complex on the Red Sea coast. The facility, expected to be operational by 2029, will produce 1.5 million cubic meters of fresh water daily using reverse osmosis technology powered entirely by a 4.2 gigawatt solar array. The deal marks the largest single investment in desalination infrastructure in Middle East history. "Water security is national security," said UAE President Sheikh Mohamed bin Zayed Al Nahyan at the signing ceremony in Abu Dhabi. "This partnership ensures that our children will not inherit a water crisis." ## Addressing Acute Regional Scarcity The complex will serve approximately 60 million people across the Gulf region, according to Saudi Water Authority projections. Saudi Arabia currently desalinates 7.5 million cubic meters of water daily, making it the world largest producer of desalinated water. The UAE produces approximately 4.2 million cubic meters per day. The Gulf region faces a water deficit that widens by roughly 2 percent annually, driven by population growth, agricultural demand, and declining groundwater reserves. The United Nations estimates that the Middle East will experience a 25 percent reduction in renewable water resources by 2050 under current consumption patterns. "Traditional thermal desalination consumes enormous amounts of energy and produces brine discharge that damages marine ecosystems," said Dr. Abdullah Al Alamiri, director of water strategy at the Emirates Water and Electricity Company. "Solar-powered reverse osmosis cuts energy consumption by 60 percent and reduces brine output by 40 percent." ## Technology and Financing Structure The project will be jointly owned 51 percent by Saudi Arabia Public Investment Fund and 49 percent by UAE Mubadala Investment Company. Engineering, procurement, and construction contracts will be awarded through a competitive tender process expected to close in Q1 2027. ACWA Power, the Saudi-listed water and power developer, is favored to lead construction after completing the 600,000 cubic meter per day Ras Al Khair plant in Saudi Arabia in 2023. Spanish firm Acciona Agua and Japanese conglomerate Mitsubishi Heavy Industries are also bidding. The solar array, covering approximately 35 square kilometers of desert terrain, will use bifacial perovskite-silicon tandem cells supplied by Saudi Arabia International Solar Alliance partnership with LONGi Green Energy. The panels carry a 30-year performance warranty. ## Environmental and Economic Impact The facility will replace an estimated 1.8 million barrels of oil equivalent per day currently consumed by conventional desalination plants across the two countries, according to the International Energy Agency. The reduction translates to approximately 4.2 million tons of avoided carbon dioxide emissions annually. Brine from the reverse osis process will be treated through a zero-liquid-discharge system before ocean release, reducing salinity impact on Red Sea coral reefs. A 2025 study published in Nature Water found that conventional desalination brine discharge has degraded 23 percent of nearshore marine habitats across the Gulf. Construction is expected to create 12,000 direct jobs and 35,000 indirect positions during the three-year build phase. The operational facility will employ approximately 2,500 permanent staff.