Water will dictate future political and economic landscapes

Water is fast becoming the defining commodity of the 21st century.

- Ahmed bin Sulayem

Not oil, not data, but water. As we look ahead, this basic element that is essential for life, agriculture, and industry is on course to surpass more commonly regarded natural resources in its globally strategic importance and economic value.

Demand for water is rising at an unprecedented pace. From rising urban populations to the water-intensive requirements of AI data centres, semiconductor manufacturing, and green hydrogen production, the pressure on global freshwater supplies is accelerating. What was once considered a freely accessible resource is increasingly subject to scarcity, speculation, and geopolitical risk.

The UAE's growing global role

At the same time, the UAE is fast becoming a global leader on water solutions through major investments in rainwater harvesting, innovative reuse of water and advanced desalination. A key example is Taweelah in Abu Dhabi — the world’s largest reverse-osmosis desalination plant, which can add 900,000 cubic metres of water per day to meet the needs of one million people.

The UAE has also stepped up as a water solutions leader beyond its borders, pioneering energy-for-water deals with trade partners such as China, Jordan and Israel. As a quid-pro-quo arrangement where energy assets or support are exchanged for water assets and or services, this form of trade often compliments carbon-rich nations with an opportunity to shore up their water security, while providing energy to water-rich countries in return. On the international stage, the UAE already made significant inroads into recognising water's vital status. At COP28, it led a landmark agreement that explicitly recognised the critical role of water in climate adaptation. Backed by $150 million endowment via the Mohamed Bin Zayed Water Initiative, the UAE is also championing breakthrough technologies, while preparing to host the pivotal 2026 UN Water Conference.