Boston, MA -- (SBWIRE) -- 11/21/2014 -- We have substantially expanded our forecasts this quarter to include a number of new indicators. This data has, in turn, impacted our existing forecasts. Our extraction forecast has been upgraded following the addition of desalinated water production forecasts, a sector where we anticipate strong growth over the coming years. In addition, we have expanded our wastewater forecasts, and have good growth projections for treated wastewater, which will in turn augment the water resources available for consumption, as we anticipate treated wastewater can cater to much of the industrial and agricultural requirements, freeing up freshwater and desalinated water supplies for domestic consumers.

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We expect that desalination will continue to provide the lion's share of the country's water supplies. There are concerns that ground water resources will disappear entirely within the next 50 years. This means that the development of additional desalination facilities is vital for the country.

The reuse of wastewater is also seeing substantial upticks in popularity. Abu Dhabi aims to reuse 100% of its wastewater by 2018. In some areas, this level of efficiency is already in place. Al Ain city, for example, already reuses 100% of recycled water generated within the city. In addition, the increased use of recycled water for irrigation forms part of the country's wider water management plan, which is focused on developing more sustainable irrigation practises.

Asian and European firms are particularly prevalent within the energy and utilities sector, accounting for around 73% of the total market share. Independent Water and Power Projects (IWPPs) have become a major area of opportunity in the GCC, with the UAE offering some of the largest projects.

We believe that the potential abolishment of government water subsidies will have a substantial long term impact on water services charges, which will increase significantly over the longer term if the proposal goes...

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