Non-Oil GDP Share: 70.5% ▲ +9.5pp vs 2017 | QS Ranking — SQU: #334 ▲ ↑28 places | Fiscal Balance: +2.8% GDP ▲ 3rd surplus year | CPI Rank: 50th ▲ +20 places | Global Innovation Index: 69th ▲ +10 vs 2022 | Green H₂ Pipeline: $30B+ ▲ 2 new deals 2025 | Gross Public Debt: ~35% GDP ▲ ↓ from 44% | Digitalised Procedures: 2,680 ▲ of 2,869 target | Non-Oil GDP Share: 70.5% ▲ +9.5pp vs 2017 | QS Ranking — SQU: #334 ▲ ↑28 places | Fiscal Balance: +2.8% GDP ▲ 3rd surplus year | CPI Rank: 50th ▲ +20 places | Global Innovation Index: 69th ▲ +10 vs 2022 | Green H₂ Pipeline: $30B+ ▲ 2 new deals 2025 | Gross Public Debt: ~35% GDP ▲ ↓ from 44% | Digitalised Procedures: 2,680 ▲ of 2,869 target |
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The Water Scarcity Challenge

Oman's critical water security situation and the path to sustainable water management

Water Stress Assessment

Oman is one of the most water-stressed countries in the world. Renewable freshwater resources per capita are well below the absolute scarcity threshold of 500 cubic metres per year. Groundwater, which historically supplied the aflaj irrigation systems that sustained Omani agriculture for millennia, is being depleted at rates far exceeding natural recharge. Many aquifers show declining water tables and increasing salinity from seawater intrusion. The gap between water demand (growing with population and economic activity) and sustainable supply (constrained by climate) is widening.

Desalination Dependence

Approximately 80 percent of Oman’s municipal water supply comes from desalination, making the Sultanate critically dependent on energy-intensive water production. Major desalination plants at Barka, Sohar, Sur, and Salalah provide hundreds of millions of litres daily. This dependency creates a nexus vulnerability: water supply depends on energy supply, which depends on fiscal health, which depends on oil revenues. Desalinated water is expensive to produce and transport, with costs that are partially subsidised for consumers. Climate change will increase both water demand (higher temperatures) and desalination costs (warmer intake water reduces efficiency).

Agricultural Water Use

Agriculture consumes the majority of Oman’s freshwater, yet contributes less than 2 percent of GDP. Traditional flood irrigation methods are highly inefficient, with significant water lost to evaporation and runoff. The tension between agricultural water use and urban water needs is growing. Modernising irrigation through drip and smart systems could dramatically reduce agricultural water consumption while maintaining or improving yields. However, traditional farming practices are culturally significant, and reform requires sensitivity to rural livelihoods and heritage.

Sustainable Water Future

Oman’s water future depends on: expanding desalination capacity using renewable energy (solar-powered desalination eliminates the energy cost vulnerability); dramatically improving water use efficiency across all sectors through regulation, pricing, and technology; expanding treated wastewater reuse for agriculture and landscaping; implementing smart water networks that detect leaks and optimise distribution; protecting and recharging groundwater resources through managed aquifer recharge; and reforming water pricing to reflect true scarcity value while protecting vulnerable households. Water security is arguably Oman’s most fundamental long-term sustainability challenge.