UAE Official Calls For Investing In Water Amid $7-Trillion Financing Gap

2026-02-04 02:51:32

(MENAFN- Khaleej Times)

He explains that the problem lies with international banks missing out on water as a profitable business

PUBLISHED: Wed 4 Feb 2026, 2:27 PM

By:
Hind Aldah

As water financing needs face shortages globally, more investors and financial institutions need to tap in to water, a UAE official said.

Abdulla Balalaa, the Assistant Minister for Energy and Sustainability at the Ministry of Foreign Affairs (Mofa), explained that the problem lies with international banks missing out on water as a profitable business, citing that water is a lifeline which does bring in good investments.

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“I think it's an undeniable fact today there is a huge financial gap in financing water,” he said.“But the good news: more than 90 per cent of the funding that goes to water comes from public money.”

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Globally, the water sector faces a $7 trillion financing gap, with that number potentially leaving billions of people exposed to outdated systems by 2040, according to a World Economic Forum report published in December 2025.

“For us as a country with very large sovereign wealth funds, we see this as an opportunity,” he said, referring to financing water. He was speaking at a panel session on the upcoming UN Water Conference, set to take place in Abu Dhabi later this year, on the second day of the World Governments Summit.

Speaking to Khaleej Times after the session, Balalaa said that the UAE's business-friendly policies, transparent processes, and its ever-growing market is an attractive investment point, with the country aiming to bring investments to its utilities sector.

The UN Water Conference, in its third edition, will be held from 2-4 December, with the UAE co-hosting alongside Senegal.

The Sustainable Development Goals (SDGs), adopted by all United Nations member states, are an urgent call for action to address a series of challenges, including climate, environmental degradation, poverty, and inequality.