Boston, MA -- (SBWIRE) -- 02/18/2014 -- A growing economy, high water demand and decreasing water supply is putting the UAE's water infrastructure under some pressure, increasing the need to invest and maintain current infrastructure to avoid a shortfall in the future. However, we note that government support is strong, and that new legislations and targets are regularly aiming to improve efficiencies as well as to encourage investment.

BMI see opportunities for investment in the water supply, energy, technology and construction sectors as the expansion of these vital utilities is a key priority, and the government and private sector are both willing and able to support investment and growth.

We are extremely positive in our outlook towards the overall modernisation of the UAE water sector, with the increasing integration of sewage, water and electricity sectors under single unified companies with a more cohesive management plan and structure.

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However, despite large-scale investments and a number of advanced water supply and extraction technologies, the UAE is still a water stressed country. A recent US study has found that the UAE is one of the most pressured countries in the world with regards to water availability. It is one of the 69 countries around the world facing extreme competition for water resources and high water stress based on considerations including the ratio of total annual water withdrawals to total available annual renewable supply, variability in water supply between years, seasonal variation in water supply, flood occurrence and drought severity. The UAE scored 5, one of a small group of countries which, according to the study, use 80% of their water resources each year.

Overall we feel that the UAE is well placed to mitigate the issues which resulted in its low score in this report. In particular, we feel that the emphasis on recycled wastewater technology development is a strong strategy, as wastewater treatment facilities are far cheaper to construct and maintain than desalination plants. Moreover, they are more environmentally friendly as less water needs to be extracted from the surrounding environs.

Improved water management plans, more rigorously enforced, and the reduction of leakage and wastage will help the UAE to overcome its water shortages. Moreover, the potential increase in tariffs will also discourage wastage and, we feel, result in more conservative consumption by both domestic and commercial users.

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