The Water-Energy Nexus: The Path to Solving the Water Crisis in the Middle East and North Africa

Ferid Belhaj

No 2503, Policy briefs on Commodities & Energy from Policy Center for the New South

Abstract: MENA faces a severe water crisis, with 12 of the world’s 17 most water-stressed countries. Climate change, population growth, inefficient water management, and weak governance drive this challenge. Water production, treatment, and distribution require high energy inputs, while energy generation depends on water for cooling and refining. The region must integrate renewable energy, especially solar power, into water solutions like desalination. Inaction could shrink GDP by up to 14% by 2050, while a $500 billion investment over the next decade could secure water resources. Key solutions include renewable-powered desalination, modernized water networks, large-scale wastewater recycling, and innovative financing through green bonds, public- private partnerships, and sovereign wealth funds. Regional collaboration on transboundary water management and shared desalination projects remains essential. MENA must act now. By integrating sustainable water-energy strategies, the region can secure its future and drive stability and growth.

Date: 2025-03
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