Arthur D. Little (ADL) has urged Gulf countries to view water not only as a natural resource but as a key economic asset vital to national resilience and long-term growth. In a new report, the consultancy noted that the Middle East holds less than 1% of the world’s renewable water resources despite being home to 6% of the global population, warning that declining reserves in GCC states make economic valuation essential to future water planning.
ADL highlighted international examples where assigning measurable value to water reshaped national policy. In Jordan, a valuation study showed that shifting from low-yield crops like alfalfa to high-value produce such as cucumbers and strawberries could triple the economic return per cubic meter of water. Cyprus calculated that replenishing the Akrotiri aquifer with treated wastewater was cost-effective after its annual value was assessed at over four million Cypriot pounds. Similar studies in South Africa and Australia quantified water’s contribution to industrial output and national GDP, prompting tariff and conservation reforms.
Of particular relevance to the Gulf, Saudi Arabia has implemented a national model that values all sources of water — including groundwater, surface water, desalinated water and treated wastewater — taking into account both usage and environmental impact. ADL said this framework now guides national planning and public awareness campaigns, setting a benchmark for the wider region.
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Nick Strange, Principal at ADL Middle East, said that placing a clear value on water enables governments to make informed decisions that maximise both economic gain and sustainability. He added that GCC states adopting such models could improve efficiency in agriculture and industry, align tariffs with real costs and prioritise infrastructure projects that secure long-term supply.
The report concludes that recognising the economic value of water is no longer optional but essential for sustaining populations, industries and national growth across the Gulf.
