This article is the part of “Policy Pathways for Food and Water Security in the MENA Region“
The Gulf Cooperation Council (GCC) countries are positioning themselves as global leaders in hydrogen,[1] with multi-billion-dollar projects aiming at exporting hydrogen-based fuels. From Saudi Arabia[2] to the UAE,[3] the region is investing billions of US dollars to become a leading exporter of clean hydrogen.[4]
At the same time, however, the region faces acute water scarcity, raising fears that hydrogen production from water electrolysis will compete with already stretched water resources.[5] The question, therefore, is whether large-scale green hydrogen production will compete with local water needs, or both can become complementary pillars of sustainable growth.
Hydrogen’s Promise and the Gulf’s Water Paradox
GCC countries are leading the global hydrogen transition, with national strategies positioning the region as a clean hydrogen exporter to Asia and Europe. Hydrogen investments aim to transform the energy landscape and diversify hydrocarbon-based economies. However, hydrogen production is water- and electricity-intensive, potentially competing with municipal and agricultural needs. This poses a dilemma, as water is the Gulf’s most limited resource. Can the region expand clean energy ambitions without intensifying water stress?
Yet, at the same time, this narrative of competition for water is only half the story. Water and hydrogen can become complementary pillars of the Gulf’s energy transition. Integrated policies, technological innovation, shared infrastructure planning, and regional collaboration, can turn the hydrogen boom into a catalyst for sustainable resource management, enabling integrated water–energy solutions.
Green hydrogen from electrolysis requires around nine litres of high-purity water per kilogram. Large-scale hubs, such as NEOM in Saudi Arabia or projects in Abu Dhabi, Dubai, and Oman, envision around 10 million tons of green hydrogen per year,[6] translating to hundreds of millions of cubic meters of water demand. This would be a cause of concern for a region that is among the most water-scarce in the world. Gulf states rely on desalination for up to 80 percent of municipal water supply, and desalination faces cost, energy, and environmental challenges. Diverting scarce water to hydrogen without planning would appear to be counterintuitive, or even irresponsible.
A False Dichotomy: Why Competition Is Not Inevitable
Framing hydrogen and water as competitors oversimplifies the picture. A number of factors demonstrate that the relationship between these two resources does not need to be one of conflict, and they are discussed in turn in the following paragraphs.
1. The scale of demand relative to desalination capacity. Even if the Gulf produces 10 million tons of green hydrogen annually, the associated water demand would be about 90 million cubic meters per year. By comparison, Saudi Arabia alone desalinates over 2.5 billion cubic meters annually.[7] In percentage, hydrogen would add approximately 3-5 percent to total desalination demand. While not negligible, this is far from catastrophic.
2. Synergies in energy and water infrastructure. Green hydrogen production requires both water and renewable electricity. Coupling renewable-powered desalination plants with electrolysis facilities allows integrated infrastructure for water purification and hydrogen generation. This co-location reduces costs, improves efficiency, and strengthens resilience. Furthermore, desalinated water costs around 0.8 EUR/m3, adding only 0.007 EUR/kg to the production cost of hydrogen.[8] Water desalination plants for hydrogen could also supply freshwater for human consumption and/or irrigation, creating multiple benefits to the local area.
3. Innovation in water sources and use. Hydrogen does not rely solely on desalinated seawater. Alternative feedstocks include saline water,[9] brackish groundwater,[10] wastewater,[11] or industrial effluents.[12] Advances in electrolysis are also reducing water and energy intensity and enabling tolerance of lower-quality water inputs. Rather than competing with water, hydrogen can push investment into technologies that broaden the water portfolio.
4. Hydrogen as a driver of sustainable desalination. The Gulf’s hydrogen ambitions are accelerating renewable-powered desalination, creating incentives for greener water and lowcarbon, high-efficiency desalination technologies. The long-term effect could be cleaner, cheaper, and sustainable water systems that benefit society.
The Opportunity for Complementarity
Hydrogen and water can reinforce each other’s sustainability agendas, particularly in the Gulf, where water and energy security are deeply interconnected.[13] The Gulf region’s abundant renewable resources, engineering expertise, and financing capacity, uniquely position it to pioneer a water–hydrogen nexus with global relevance.[14] The following examples illustrate this complementarity:
1. Coupling renewable desalination with hydrogen. The Gulf’s high solar irradiance[15] and coastal geography make it ideal for renewable-powered desalination. Integrated facilities where renewable electricity drives both desalination and electrolysis can achieve economies of scale, cut costs, improve operational stability, and reduce emissions compared to standalone facilities.
2. Circular approaches to water use. Hydrogen facilities can be designed for circular water systems, treating, and reusing wastewater within the plant. Industrial symbiosis— using effluents from one process as inputs for another—can minimise freshwater demand. Combining hydrogen hubs with carbon capture, ammonia production, or industrial parks creates opportunities for resource cascading.
3. Supporting food security. Shared resources will free up desalinated water for agriculture, supporting food-security strategies across the GCC. This is especially relevant for countries like the UAE, Saudi Arabia, and Oman, which are currently expanding domestic food production through hydroponics and high-tech agriculture, increasing freshwater and electricity demand. Furthermore, green hydrogen-derived fertilisers, such as green ammonia, can boost crop yields while aligning food production with low-carbon sustainability goals, strengthening the energy-water-food security objectives.
4. Driving technological innovation. Hydrogen is already attracting substantial R&D funding. Aligning hydrogen strategies with water-security goals can drive innovation toward advanced desalination membranes, brine valorisation, and water-efficient electrolysis, generating benefits beyond hydrogen for agriculture, industry, and urban water supply.
The Gulf region is already leading this technology-driven integration. In Saudi Arabia, a 100-percent renewable-powered selective desalination plant,[16] is designed to produce up to 500,000 m³/day while enabling advanced water reuse and value recovery from brine, linking circular water management to hydrogen production. In Oman, renewable-powered desalination and water purification systems are integrated with green hydrogen production facilities.[17] The second solar-powered desalination plant[18] is under construction, demonstrating integrated solutions for water and energy in arid climates.
5. Exporting sustainability, not just fuel. Global buyers of hydrogen (i.e., Europe, Japan, and Korea) are increasingly focused on the carbon footprint of imports. Demonstrating that hydrogen from the Gulf countries produced with sustainable water practices can strengthen the region’s competitiveness. Positioning hydrogen as “water-neutral” or “water-positive” adds value in global markets where Environmental, Society and Governance (ESG) criteria matter.
The Risks of Inaction: When Complementarity Fails
Synergy is not guaranteed. Without careful planning, hydrogen development could worsen water challenges or miss its goals. Key risks stand out:
- If hydrogen water demand is met with desalination powered by fossil fuels, the carbon savings of hydrogen are compromised.
- Diverting desalination capacity to hydrogen exports while neglecting domestic water affordability would increase the water stress and create public opposition.
- Building hydrogen infrastructure without considering water and renewable-energy integrations risks locking the region into inefficient designs costly to retrofit, in turn increasing the cost and resource scarcity.
The Gulf states must avoid these pitfalls by adopting proactive governance, transparent planning, and regional cooperation.
Policy Priorities for a Water–Hydrogen Nexus
To make hydrogen and water allies rather than competitors in the Gulf region’s energy transition, policymakers must adopt an integrated, forward-looking approach. National hydrogen strategies should quantify water needs, identify sustainable sources, and set clear efficiency and conservation targets, building public trust and avoiding misconceptions. Hydrogen projects should pair with renewable-powered desalination, ensuring water demand without deepening fossil fuel dependence, keeping hydrogen’s production footprint very low or zero. Investment in water-efficient electrolysis, wastewater-fed systems, and brine utilisation can further diversify supply and reduce pressure on scarce freshwater resources.
Effective implementation requires transboundary mechanisms. Shared frameworks for standards and regional data-sharing can standardise reporting on water, energy, and environmental performance, enabling evidence-based planning. A Gulf water–hydrogen-energy coordination body could align strategies, infrastructure planning, and cross-border investments, strengthening ESG and certification credibility.
Last but not least, bilateral and multilateral collaborations offer models for regional integration. Examples include the UAE-Oman SalalaH2 project,[19] focused on large-scale green hydrogen and ammonia powered by renewable energy, and the ACWA Power-Bapco solarbattery project,[20] that links Saudi Arabia and Bahrain, sharing cross-border infrastructure and standards to support sustainable growth.
A New Narrative for the Gulf’s Transition
The story of hydrogen and water in the Gulf is often told as conflict, but the reality is more hopeful. Yes, hydrogen requires water, and yes, the Gulf is water scarce, but the hydrogen’s water demand is manageable, and it can accelerate innovation in desalination, circular water systems, and integrated energy–water infrastructure.
Rather than competing, hydrogen and water can reinforce sustainability. For Gulf countries seeking to diversify economies, energy leadership, and resource security, this is an opportunity too valuable to miss.
The question is not whether hydrogen and water compete but whether policymakers, investors, and researchers design complementary strategies. If synergy is achieved, the Gulf will lead the global hydrogen economy while setting a benchmark for solving one of today’s greater challenges: how to secure energy and water together in an era of transition.
Endnotes
[1] International Renewable Energy Agency (IRENA), Geopolitics of the Energy Transformation: The Hydrogen Factor (Abu Dhabi: IRENA, 2022), Introduction and Executive Summary, https://www.irena.org/Digital- Report/Geopolitics-of-the-Energy-Transformation.
[2] ACWA Power, “NEOM Green Hydrogen Project,” https://acwapower.com/en/projects/neom-greenhydrogen- project/.
[3] United Arab Emirates, Ministry of Energy and Infrastructure, National Hydrogen Strategy (Abu Dhabi: Ministry of Energy and Infrastructure, 2023), https://www.cines.fraunhofer.de/content/dam/zv/cines/ dokumente/2023_UAE_National_Hydrogen_Strategy_Fraunhofer_GHD.pdf.
[4] International Energy Agency (IEA), Global Hydrogen Review 2023 (Paris: IEA, 2023), https://www.oecd. org/en/publications/global-hydrogen-review-2023_cb2635f6-en.html.
[5] Samantha Kuzma, Liz Saccoccia and Marlena Chertock, “25 Countries, Housing One-Quarter of the Population, Face Extremely High Water Stress,” World Resources Institute, August 16, 2023, https://www.wri.org/insights/highest-water-stressed-countries.
[6] Zawya Projects, “HYDROGEN. Green Ambition: MENA targets 10 mtpa of hydrogen in 2030: Report,” February 7, 2025, https://hydrogen-central.com/green-ambition-mena-targets-10-mtpa-of-hydrogen-in-2030-report/.
[7] Rinat Gainullin and Hala Hisham Koura, “The rise and rise of water desalination in Saudi Arabia,” Arab News, September 11, 2022, https://www.arabnews.com/node/2160116/business-economy#:~:text=The%20Kingdom%20may%20 require%20a,million%20cubic%20meters%20in%202014.
[8] Rogier E. Roobeek, A techno-economic analysis of a dedicated green hydrogen supply chain from the Port of Sohar to the Port of Rotterdam, MSc Thesis (Delft University of Technology, 2020), https:// repository.tudelft.nl/islandora/object/uuid:9d1225b7-65ed-44d2-b9c9-d60cfce64a5f.
[9] David Nutt, “Sunlight and seawater lead to low-cost green hydrogen, clean water,” Cornell Chronicle, April 9, 2025, https://news.cornell.edu/stories/2025/04/sunlight-and-seawater-lead-low-cost-green-hydrogenclean- water.
[10] Giovanni Campisi et al.,” Producing Hydrogen and Fresh Water from Brackish Water Desalination via Electrodialysis,” Chemical Engineering Transactions 105 (2023): 103-108, https://www.cetjournal.it/index. php/cet/article/view/CET23105018.
[11] G.S. Cassol et al., “Ultra-fast green hydrogen production from municipal wastewater by an integrated forward osmosis-alkaline water electrolysis system,” Nat Commun 15 (2024): 2617, https://doi. org/10.1038/s41467-024-46964-8.
[12] Anthony Lewis, “Turning industrial waste into clean hydrogen fuel,” Advanced Science News, April 22, 2024, https://www.advancedsciencenews.com/turning-industrial-waste-into-clean-hydrogen-fuel/.
[13] Anders Jägerskog and Shawki Barghouti, Advancing Knowledge of the Water-Energy Nexus in the GCC Countries, Washington DC, World Bank, 2022, https://doi.org/10.1596/38296.
[14] Raha Hakimdavar, “Water Is the New Oil in the Gulf,” Time, January 18, 2024, https://time.com/6556469/ water-new-oil-gulf/.g a benchmark for solving one of today’s greater challenges: how to secure energy and water together in an era of transition.
[15] Solargis, “Solar Resource Maps & GIS Data,” https://solargis.com/resources/free-maps-and-gis-data.
[16] NEOM, “Enowa, ITOCHU and Veolia sign MoU to build new generation of desalination plant powered by 100% renewable energy in NEOM,” NEOM News & Media Center, June 16, 2022, https://www.neom. com/en-us/newsroom/build-generation-of-desalination-plant.
[17] Saada Said Al Zakwani et al., “Floating PV powered seawater purification using the RO process and powering electrolyser for green hydrogen production in Oman,” Solar Compass 17 (2026): 100150, https://doi.org/10.1016/j.solcom.2025.100150.
[18] Conrad Prabhu, “Second desalination plant to be solar powered in Oman,” Oman Daily Observer, December 22, 2025, https://www.omanobserver.om/article/1181512/business/economy/second-desalination-plantto- be-solar-powered-in-oman.
[19] Kevin Rouwenhorston, “SalalaH2: export-focused renewable mega-project targets FID in 2026,” Ammonia Energy Association, May 21, 2025, https://ammoniaenergy.org/articles/salalah2-export-focusedrenewable- mega-project-targets-fid-in-2026/.
[20] ACWA Power, “ACWA Power and Bapco Energies Announce Joint Development Agreement to Strengthen Energy Sector Cooperation Between Saudi Arabia and the Kingdom of Bahrain,” ACWA Power Newsroom, December 9, 2025, https://www.acwapower.com/news/acwa-power-and-bapco-energies-announce-jointdevelopment- agreement-to-strengthen-energy-sector-cooperation-between-saudi-arabia–and-the-kingdomof- bahrain/.
