DEWA and Acwa forge strategic partnership to double Hassyan’s desalination capacity

A landmark agreement valued at AED 1.76 billion will see the expansion of Dubai's seawater reverse osmosis facility, positioning it as the world's largest desalination plant by 2029 and reinforcing the emirate's water security strategy.

The corridors of water infrastructure are being redrawn. Dubai Electricity and Water Authority and Acwa have signed a Water Purchase Agreement and Shareholder Agreement that will transform the Hassyan complex into a desalination powerhouse, adding 60 million imperial gallons per day to Dubai’s water production capacity. The partnership, executed by Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of DEWA, and Mohammad Abunayyan, Founder and Chairman of Acwa, charts a course toward securing the emirate’s long-term water resilience.

The project structure reflects a balanced collaboration: DEWA will hold a 60 per cent stake whilst Acwa maintains a 40 per cent stake in the project company, which assumes responsibility for development, financing, construction and operation of the desalination plant. Spanning three decades, the Water Purchase Agreement anchors a commitment to sustainable water production through reverse osmosis technology, one of the most advanced methodologies available in the field.

When completed, the second phase of Hassyan will complement the first phase, which delivered 180 million imperial gallons per day and represented DEWA’s inaugural project under the Independent Water Producer model, financed through an investment of AED 3.357 billion. Combined, the two phases will propel Dubai’s total desalinated water production capacity to approximately 735 million imperial gallons per day by 2029, with Hassyan itself becoming a global benchmark at 240 million imperial gallons per day. As we reported when DEWA’s Hassyan refinancing wins global structured finance honours, the complex has already demonstrated its significance to Dubai’s infrastructure landscape.

The agreement embodies alignment with the UAE Water Security Strategy 2036 and the Dubai Clean Energy Strategy 2050, both of which emphasise reducing emissions whilst ensuring sustainable access to water and advancing the goal of achieving net zero by 2050. Acwa’s involvement stems from a partnership framework built over more than a decade, spanning Dubai’s power and water sectors, creating a foundation of proven capability and shared vision.

Al Tayer articulated the strategic significance of the accord, emphasising that the partnership strengthens Dubai’s water security through sustainable sources and the latest technologies. The expansion positions Dubai to meet rising demand whilst integrating water, energy and environmental strategies in alignment with broader UAE objectives. This represents another milestone in DEWA’s trajectory of innovation, following its continued investment in solar and renewable energy infrastructure across the region.

What it means for Abu Dhabi

Dubai’s advancement in water security carries resonance throughout the UAE. As the nation confronts the dual pressures of growth and climate sustainability, the Hassyan expansion demonstrates how strategic partnerships between public and private sectors can deliver critical infrastructure at scale. The project reinforces the UAE’s position as a leader in desalination technology and reverse osmosis innovation, capabilities that will inform regional water management strategies.

The commitment to net zero emissions through advanced desalination reflects the broader UAE vision of sustainable prosperity. By expanding production capacity whilst reducing environmental impact, Hassyan serves as a model for how the emirates can reconcile economic development with long-term environmental stewardship and resource security.

Source: WAM