- MENA holds <1% of the world’s renewable water resources while supporting 6% of its population. This makes effective water management critical for GCC nations.
- Jordan’s agricultural sector consumes nearly 60% of the national water supply. The country set a plan to shift toward higher-value crops that could raise water’s economic value from JD 0.40/m³ to JD 1.10/m³.
- Saudi Arabia’s national valuation model covers groundwater, desalination, and reuse, offering a providing a benchmark for the wider region as it balances growth ambitions with resource stewardship.
GCC – 02, October 2025— Arthur D. Little (ADL) has released new findings demonstrating that water must be recognized not only as a natural resource but as a key driver of economic activity and national resilience. With the Middle East home to 6% of the global population but holding less than 1% of the world’s renewable water resources, adopting economic valuation methodologies as part of broader
water management strategies to ensure lasting access for generations to come is becoming increasingly important particularly for GCC countries facing decline in non-renewable water resources.
International case studies illustrate the practical impact of using economic valuation of water in making policy decisions. In Jordan, agriculture consumes nearly 60% of water resources, yet a comprehensive water valuation study showed that prioritizing high-value crops such as cucumbers and strawberries over low-value, water-intensive crops like alfalfa could raise the average economic value of water nearly threefold, from JD 0.40 per cubic meter to JD 1.10.
Cyprus provides another example, where the economic value of water of the critical water resource; Akrotiri aquifer, was calculated at CYP 4.07 million annually vastly exceeded the cost of conservation measures required. These findings supported the decision to replenish the aquifer with treated wastewater, validating a significant investment in long-term supply security.
In South Africa, valuation of industrial water use calculated an average value of ZAR 369.10 per cubic meter, far higher than prevailing tariffs. This insight encouraged policymakers to consider tariff adjustments that promote efficiency without undermining industry. In Australia, the impact of groundwater usage on the national economy was quantified at AUD 6.8 billion annually using the economic value of water, underscoring water’s role as an economic enabler of national prosperity.
Of particular relevance to the Gulf is Saudi Arabia’s comprehensive national water valuation model, which incorporates both use and non-use values across all water sources; groundwater, surface water, desalinated water, and treated wastewater. This framework has become a cornerstone for national planning, awareness raising, and conservation decisions, providing a benchmark for the wider region as it balances growth ambitions with resource stewardship.
“Assigning measurable value to water enables leaders to make informed decisions that deliver the greatest benefit to both people and economies,” said Nick Strange, Principal in the Energy, Utilities & Resources practice at Arthur D. Little Middle East. “For the GCC countries, adopting these methodologies can strengthen national resilience, foster innovation in alternative water sources such as; desalination and reuse, and ensure that every cubic meter contributes to sustainable growth.”
The findings emphasize that water valuation is not a theoretical exercise but a practical policy tool. By embedding it into decision-making, GCC countries can align raw water tariffs with true resource costs, improve water efficiency in agriculture and industry, and prioritize conservation and infrastructure projects that deliver the highest long-term returns. Embracing the economic value of water in this way can help guarantee lasting access to the fresh water needed to sustain industries, economies, and entire populations.
To view the full report, please click here.
About Arthur D. Little
Arthur D. Little has been at the forefront of innovation since 1886. We are an acknowledged thought leader in linking strategy, innovation and transformation in technology-intensive and converging industries. We navigate our clients through changing business ecosystems to uncover new growth opportunities. We enable our clients to build innovation capabilities and transform their organizations.
Our consultants have strong practical industry experience combined with excellent knowledge of key trends and dynamics. ADL is present in the most important business centers around the world. We are proud to serve most of the Fortune 1000 companies, in addition to other leading firms and public sector organizations.
For further information, please visit: www.adlittle.com