Investcorp has joined a consortium led by Orascom Construction to develop a large-scale seawater treatment and transportation project in Abu Dhabi, aiming to enhance sustainable water supply for ADNOC's operations.

Information on the Target

The target of this investment is a significant seawater treatment and water transportation project being developed in the Emirate of Abu Dhabi. This large-scale initiative is spearheaded by the Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi National Energy Company (TAQA). The project's primary goal is to establish a sustainable water supply for ADNOC's onshore operations, thereby enhancing operational efficiency and supporting the region's water sustainability efforts.

This greenfield project is structured through a special purpose vehicle (SPV) under a 30-year build, own, operate, and transfer model. ADNOC and TAQA collectively own a 51% stake in the SPV, while the remaining share is divided equally between Orascom Construction, Metito, and Investcorp Infrastructure Partners, each holding 16.3%. The project, awarded to Orascom Construction and Metito in May 2023, has successfully reached financial closure as of September 2023, with engineering and procurement activities already in progress and commercial operations slated to commence in June 2026.

Industry Overview in the United Arab Emirates

The United Arab Emirates (UAE) is a key player in the global water and wastewater management sector. Given the country's limited freshwater resources and increasing demand for water due to its rapid urbanization and industrial growth, effective water m