Market Overview
Water infrastructure is among Oman’s most critical investment sectors, with the Sultanate relying on desalination for over 80% of potable water supply. The Oman Power and Water Procurement Company (OPWP) manages long-term water purchase agreements with private desalination operators under an established IPP/IWP framework.
Total water demand is projected to grow 5-7% annually through 2030, requiring significant new capacity additions.
Investment Case
Water infrastructure offers long-tenor, government-backed revenue streams through power and water purchase agreements (PWPAs). Desalination projects provide 20-25 year contracted cashflows with inflation escalation mechanisms.
| Metric | Value |
|---|---|
| Desalination capacity | 1.8 million m3/day |
| Demand growth rate | 5-7% annually |
| New capacity required | 600,000 m3/day by 2030 |
| PWPA typical tenor | 20-25 years |
| Wastewater treatment gap | 40% uncollected |
| Sector investment pipeline | OMR 2.5 billion |
Risk Factors
OPWP counterparty credit depends on government fiscal health. Technology risk in reverse osmosis membrane performance. Environmental impact of brine discharge faces increasing scrutiny. Construction cost overruns in coastal environments.
Entry Strategy
IWP tender participation through the OPWP procurement process. Equity investment in existing desalination companies. Wastewater treatment PPPs through municipal authorities. Technology supply for membrane systems and energy recovery devices.
Vision 2040 Alignment
Water security is a foundational Vision 2040 priority, with the National Water Strategy setting capacity targets, efficiency improvements, and private sector participation objectives through 2040.