Etihad Water and Electricity Launches Second Desalination Project in UAE
📋 Key Takeaway: Etihad Water and Electricity has announced its second desalination project in the UAE, a $285 million facility in Fujairah, marking a significant step in its public-private partnership strategy.
Details of the Fujairah I Desalination Project
Etihad Water and Electricity (EtihadWE) has revealed plans for its second desalination project in the UAE, the Fujairah I Independent Water Producer (IWP) facility. This initiative operates under a public-private partnership (PPP) framework and is set to be developed in collaboration with a consortium that includes Abu Dhabi-based NMDC Infra and Spain’s Lantania Aguas. The project, which entails an investment of 1.046 billion UAE dirhams (approximately $285 million), aims to produce 60 million imperial gallons per day (MIGD) of seawater through reverse osmosis technology.
Located at the Port of Fujairah, the desalination plant will also feature a storage capacity that can support 18 hours of production. Construction is expected to be completed within a 30-month timeframe, with initial operations commencing at partial capacity before gradually reaching full output. The project will be executed by Lantania NMDC Water, a joint entity formed when NMDC Infra acquired a 51% stake in Lantania Aguas in January 2026.
Expanding the UAE’s Desalination Capacity
The Fujairah I project is EtihadWE’s second desalination initiative under a PPP model, following the successful implementation of the Naqa’a IWP in Umm Al Quwain, which has a capacity of 150 MIGD. Although specific details regarding the offtake agreement for Fujairah I were not disclosed, it is noted that EtihadWE had previously entered into a 35-year water purchase agreement with the consortium developing Naqa’a IWP, which includes ACWA Power and Mubadala’s MDC Power Holding Company.
EtihadWE holds a 20% equity stake in the Naqa’a Desalination Plant, with the remaining shares evenly distributed between ACWA Power and Mubadala. The Naqa’a IWP project, valued at AED 3 billion ($800 million), was financed through a consortium of seven international and local lenders, providing $680 million in senior debt. The facility began full commercial operations in August 2022.
Broader Regional Initiatives
Beyond its desalination projects, EtihadWE is strategically expanding its operations across the power, water, and wastewater sectors in the region. Recently, it secured a contract for the gas-fired Seventh Independent Power Producer (IPP7) project in Jordan. Additionally, the utility is involved in gas-fired power projects in Oman and various renewable energy and sewage treatment initiatives in Saudi Arabia.
In December 2025, EtihadWE was selected as the reserve bidder for the Riyadh–Qassim Independent Water Transmission Pipeline project in Saudi Arabia. The launch of the Fujairah I project underscores EtihadWE’s commitment to enhance desalination capacity through PPP models while simultaneously expanding its project portfolio throughout the UAE and the broader Middle East.
Frequently Asked Questions
What is the Fujairah I desalination project?
It is a new seawater reverse osmosis desalination facility being developed by Etihad Water and Electricity in Fujairah.
How much water will the Fujairah I plant produce?
The facility will produce 60 million imperial gallons per day (MIGD).
Who are the partners in the Fujairah I project?
The project is a collaboration between NMDC Infra and Lantania Aguas.
What is the total investment for the Fujairah I project?
The total investment for the project is 1.046 billion UAE dirhams ($285 million).
What other projects is EtihadWE involved in?
EtihadWE is also involved in various power and water projects across the region, including initiatives in Jordan, Oman, and Saudi Arabia.
