6 November 2026
Dubai Electricity and Water Authority (DEWA) and the Saudi developer Acwa have signed a 30-year Water Purchase Agreement and a Shareholder Agreement worth AED 1.76 billion (about USD 478 million) for the second phase of the Hassyan seawater reverse osmosis (SWRO) desalination plant. The deal was announced by the UAE news agency WAM on 6 November 2026. Phase 2 adds about 60 million imperial gallons per day (MIGD), or 272,000 cubic metres, which takes Hassyan to 240 MIGD and, according to DEWA, makes it the largest SWRO desalination plant in the world. DEWA will own 60% of the project company and Acwa 40%.
What DEWA and Acwa signed
The two agreements were signed by Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, and Mohammad Abunayyan, Founder and Chairman of Acwa. The project company created under the Shareholder Agreement will develop, finance, build and operate the new plant. DEWA will buy its output under the Water Purchase Agreement for 30 years.
| Term | Hassyan SWRO phase 2 |
|---|---|
| Agreements | Water Purchase Agreement and Shareholder Agreement |
| Value | AED 1.76 billion (about USD 478 million) |
| Term of the water purchase | 30 years |
| Capacity | about 60 MIGD, or 272,000 cubic metres per day |
| Ownership of the project company | DEWA 60%, Acwa 40% |
| Scope of the project company | development, financing, construction and operation |
| Technology | seawater reverse osmosis (SWRO) |
Acwa is listed on the Saudi Exchange and disclosed the agreement there at SAR 1.794 billion, the same USD 478 million, with a 40% stake, as reported by MEED and Smart Water Magazine.
Hassyan after phase 2: 240 MIGD
The new phase will be built next to the first one at the Hassyan complex on the Dubai coast. Phase 1 has a capacity of 180 MIGD, about 818,000 cubic metres per day, and was developed with an investment of AED 3.357 billion. It was DEWA’s first project under the Independent Water Producer (IWP) model, and its water purchase agreement was signed with the same partner in October 2023.
Together the two phases give 240 MIGD, roughly 1.09 million cubic metres of drinking water a day. One imperial gallon equals about 4.55 litres.
DEWA says that once both phases are complete, Dubai’s total desalinated water production capacity will reach about 735 MIGD by 2029. At that point Hassyan alone would account for roughly a third of the emirate’s desalination capacity.
DEWA links the project to the UAE Water Security Strategy 2036, the Dubai Clean Energy Strategy 2050 and the net zero by 2050 target. Reverse osmosis pushes seawater through membranes under pressure and uses less energy per cubic metre than thermal desalination, which historically relied on heat from power plants.
How the IWP model works
Under the Independent Water Producer model, the utility does not build the plant on its own balance sheet. Instead:
- a project company is set up with the utility and a private developer as shareholders, here DEWA with 60% and Acwa with 40%;
- the project company raises financing, hires the construction contractors and runs the plant;
- the utility signs a long-term purchase agreement and pays for the water the plant makes available, here for 30 years;
- the private partner earns its return from the purchase agreement over the life of the contract.
DEWA uses the same structure for power. Its solar projects, including the refinancing we covered in our article on DEWA’s USD 2.7 billion Noor Energy 1 refinancing, are also built with private partners and long-term purchase agreements.
The water still has to reach customers. According to Zawya Projects, the transmission network for Hassyan phase 2 is tendered separately, with an engineering, procurement and construction contract expected to be awarded in the first quarter of 2027.
What it means for companies in the UAE
The agreements cover bulk water bought by DEWA from the project company. The announcement does not mention any change to customer water tariffs, connection fees or procedures for businesses and residents in Dubai.
The practical effect is on the supply chain. Projects of this size are delivered through EPC contractors, membrane and equipment suppliers, pipeline builders and operation and maintenance firms, and most of that work is bought by the project company and its contractors. A foreign company that wants to work on UAE utility projects usually needs:
- a UAE trade licence with the business activity that matches the contract scope;
- a choice between mainland and free zone that fits where the work is done and who the client is;
- registration in the supplier or vendor systems of the utility or the main contractor;
- a corporate bank account in the UAE to receive payments and post guarantees;
- VAT and corporate tax registration where thresholds apply;
- work visas for engineers and site staff.
How Atlant Capital can help
We help international contractors and suppliers enter the UAE market: choosing the jurisdiction and business activities, company setup on the mainland or in a free zone, opening a corporate bank account, visas for founders and staff, and tax registration. Our guide to company formation in the UAE sets out the steps, documents and typical timelines.
Conclusion
DEWA and Acwa have signed AED 1.76 billion of agreements for the second phase of Hassyan: 60 MIGD of new capacity, a 30-year water purchase agreement and a 60/40 project company. With phase 1 at 180 MIGD, Hassyan reaches 240 MIGD and becomes the largest SWRO plant in the world, while Dubai’s total desalination capacity is set to reach about 735 MIGD by 2029. The deal changes nothing for customers today; the opportunity is in the contracts that follow.
Source: WAM, Khaleej Times.
FAQ
What did DEWA and Acwa sign for Hassyan phase 2?
DEWA and Acwa signed a 30-year Water Purchase Agreement and a Shareholder Agreement worth AED 1.76 billion (about USD 478 million), announced on 6 November 2026. The project company, 60% owned by DEWA and 40% by Acwa, will develop, finance, build and operate the plant.
How big will the Hassyan desalination plant be?
Phase 2 adds about 60 MIGD, or 272,000 cubic metres per day, to the 180 MIGD of phase 1. Together that is 240 MIGD, which DEWA says makes Hassyan the largest seawater reverse osmosis desalination plant in the world.
What will Dubai’s desalination capacity be by 2029?
According to DEWA, once both Hassyan phases are complete, Dubai’s total desalinated water production capacity will reach about 735 MIGD by 2029. Hassyan’s 240 MIGD would be roughly a third of that.
Does the Hassyan deal change water tariffs in Dubai?
No. The agreements cover bulk water that DEWA buys from the project company over 30 years. The announcement does not mention any change to customer tariffs, connection fees or procedures for businesses and residents.
