MIAMI, Florida — Access to clean water is one of the most pressing challenges globally and the data is hard to ignore. According to U.N.-Water, approximately 1.42 billion people, including 450 million children, currently live in areas of high or extremely high water vulnerability. By 2030, global water demand is projected to exceed supply by 40%.
However, in recent years, a shift has begun. As water scarcity worsens and conventional sources dry up, coastal nations are turning seawater into an engine for development. Desalination in developing countries is playing an increasingly important role in addressing this crisis while creating significant new economic opportunities.
What is Desalination and Why is it Growing?
Desalination is the process of removing salt and impurities from seawater or brackish water to produce clean, drinkable water. There are two main methods: reverse osmosis (RO), which pushes water through fine membranes and thermal distillation, which uses heat to evaporate and recondense water. In recent decades, the cost of RO has fallen dramatically, with some systems now achieving energy consumption as low as 1.5 kWh per cubic meter.
In fact, RO systems have more than doubled in efficiency over the last 20 years, making desalination a far more viable option for countries that previously could not afford it. The global desalination market reflects this growing interest. Valued at approximately $21.7 billion in 2024, it is projected to reach $58 billion by 2033, growing at a compound annual rate of nearly 12%. The Middle East and Africa, the regions facing the most acute water stress, have the largest share.
Morocco: A Model for Desalination in Developing Countries
Morocco is one of the clearest examples of how desalination in developing countries can go beyond providing drinking water and directly support economic stability. Agriculture employs roughly a third of Morocco’s workforce and accounts for more than 10% of GDP. However, 80% of the country’s water resources go to the agricultural sector, which consecutive droughts have severely impacted since 2018.
By early 2024, key reservoirs such as Al Massira had dropped to nearly 1% capacity, resulting in the loss of entire harvests and food prices rising. In response, Morocco has positioned desalination at the heart of its national water strategy. The Agadir desalination plant, the largest in Africa, currently produces 275,000 cubic meters of water per day, of which half is dedicated to irrigation.
Spanish firm Cox Group operates it through a public-private partnership with Morocco’s national water utility, ONEE. An expansion to 400,000 m³/day is currently underway, backed by an investment of more than $290 million between 2025 and 2027. It will supply drinking water to two million people while irrigating 13,600 hectares of farmland.
Similarly, King Mohammed VI has committed to desalination, aiming to provide more than 1.7 billion cubic meters annually by 2030, which would cover more than half of the country’s drinking water needs.
Saudi Arabia: Desalination as a Pillar of Economic Diversification
Saudi Arabia is the world’s largest producer of desalinated water. The Gulf Cooperation Council (GCC) nations collectively hold more than 45% of global desalination capacity, with Saudi Arabia alone responsible for approximately 20%. The country has committed $80 billion to new desalination infrastructure, targeting a capacity of 8.5 million cubic meters per day, which is enough to cover more than 90% of its water consumption.
Beyond meeting basic needs, desalination is central to Saudi Vision 2030, the country’s plan to diversify its economy away from oil. The NEOM megacity project features a flagship desalination plant powered entirely by renewable energy, developed in partnership with French energy company Veolia and Japanese trading firm Itochu.
The Economic Implications of Desalination in Developing Countries
The economic argument for desalination in developing countries goes well beyond access to drinking water. A reliable water supply is a prerequisite for agricultural production, industrial activity and consistent business operations. In Morocco, irrigated agriculture already accounts for more than 50% of the country’s total agricultural value-added, indicating that water access is directly tied to economic output.
In the Gulf, desalination has enabled the development of manufacturing, food processing and hospitality sectors that would not otherwise be possible in an arid environment. The World Bank, the European Investment Bank and the African Development Bank are among the multilateral lenders financing this infrastructure, signaling that water security is increasingly treated as an economic development priority. As more countries invest in desalination capacity, new opportunities are emerging for engineering, construction and technology firms across the world.
Challenges That Remain
Although the case for desalination is growing, important challenges persist. Energy consumption accounts for between one-third and one-half of total desalination costs. This makes it expensive to operate, particularly in low-income countries that lack access to cheap or renewable energy.
A U.N.-backed study found that for every liter of clean water produced, desalination plants also generate 1.5 liters of brine. Brine is a saltwater waste with high chemical concentrations that poses a serious threat to marine ecosystems when not properly managed. Affordability is also a significant barrier.
In Morocco, desalinated water costs more than four times as much as conventional water, making it out of reach for many small-scale farmers. According to a peer-reviewed study, by 2050, two billion people in 44 countries will face water scarcity, with 95% living in developing nations. Yet, many of those countries lack the capital and energy infrastructure to deploy desalination at scale.
Without targeted financing and a shift toward renewable energy, desalination in developing countries risks remaining accessible only to wealthier coastal nations.
Final Remarks
As water scarcity worsens and conventional water sources come under increasing pressure, desalination in developing countries is proving to be more than a technical solution; it is becoming an economic one. Projects like Morocco’s Agadir plant and Saudi Arabia’s NEOM demonstrate how water infrastructure, when paired with the right financing and energy strategy, can stabilize agriculture, support industry and open new markets for global investment. The challenges are real, but so is the opportunity.
For governments, development institutions and private investors, supporting desalination infrastructure in water-stressed developing nations may be one of the most impactful investments of the decade.
– Chloe Bonnefil
Chloe is based in Miami, FL, USA and focuses on Business and Technology for The Borgen Project.
Photo: Pexels