Company News
2026-09-04The Dubai water treatment market is entering a historic moment: multiple EPC packages of the Dubai Strategic Sewage Tunnel (DSST) project, with a total investment of approximately 220亿 USD, have been awarded to consortiums led by Chinese enterprises; the Jebel Ali Sewage Treatment Plant Phase III has initiated PPP prequalification for a 30年-year concession period in 7月, with a final design capacity of 100万 cubic meters per day. According to 8月22日, the UAE's "2036 Water Security Strategy" aims to increase the treated water reuse rate to 95%. From seawater desalination to sewage treatment, Dubai is shifting from "meeting demand" to "defining standards."
Sewage Tunnel: China's Share in Dubai's Largest Water Infrastructure Project
The Dubai Strategic Sewage Tunnel (DSST) project, with a total investment of approximately 800亿 dirhams (about 220亿 USD), is the largest water infrastructure project in Dubai's history. The project aims to collect and transport municipal sewage across the city through a deep tunnel system, replacing the existing extensive pumping station network. Notably significant is the role of Chinese enterprises:
Package W — capital expenditure of approximately 30亿 USD, with China State Construction Engineering Corporation leading the consortium as EPC contractor;
Package J — capital expenditure of nearly 20亿 USD, undertaken by a consortium comprising China Railway Group Limited (China Railway) Middle East West Branch and local contractors;
Package Links — secured with participation from China Civil Engineering Construction Corporation, China Railway 11th Bureau, and other entities.
This marks the first implementation of a localization content program by the Dubai Municipality, requiring contractors to increase local procurement and local employment ratios. Chinese enterprises need to make sustained investments in technical adaptation and localization capabilities, which is becoming a new threshold for competition in the Gulf market.
Sewage Treatment: Full Rollout of Long-Term PPP Models
Beyond the tunnel, sewage treatment plant projects in Dubai are also advancing intensively. The Jebel Ali Sewage Treatment Plant Phase III is currently the largest incremental project. In 2026年7月, the Dubai Municipality launched prequalification, adopting a PPP model covering the full cycle of design, build, finance, own, operate, and transfer, with a concession period of 30年 and a final treatment capacity of 100万 cubic meters per day. Additionally, the Jebel Ali Phase II expansion project (with a daily treatment capacity of 37.5万 cubic meters) has been commissioned; the Warsan Sewage Treatment Plant (with a daily treatment capacity of approximately 17.5万 cubic meters) is expected to initiate EPC general contracting tendering by the end of 2026年.
Meanwhile, the Jumeirah New Town Phase II sewage treatment project, undertaken by MCC Group, employs a combined process of Ultrafiltration (UF) + Electrodialysis (ED). After treatment, 72% of the water is reused for landscape irrigation. The project has been officially handed over, providing a benchmark for implementation in this segment. The new Dubai reclaimed water regulations also impose a mandatory requirement of 850 mg/L for Total Dissolved Solids (TDS) in reclaimed water, reflecting increasingly stringent technical standards.
Dual-Track Logic: Simultaneous Expansion of Seawater Desalination and Reclaimed Water Reuse
Data from the Dubai Electricity and Water Authority (DEWA) shows that in Q1 2026年, Dubai added 6000万 gallons/day (approximately 27.3万 cubic meters) of seawater Reverse Osmosis (RO) desalination capacity, bringing total desalination installed capacity to 555 MIGD; the Hassyan Seawater Desalination Plant Phase I (180 MIGD, approximately 81.8万 cubic meters/day) has reached 90% completion, undertaken by PowerChina SEPCOIII Electric Power Construction Corporation, driven by 100% photovoltaic energy, and upon commissioning will meet the daily water needs of nearly 180万 people. DEWA's long-term target is to reach 735 MIGD of total desalination capacity by 2030年, with all desalinated water produced using clean energy and waste heat.
On the reclaimed water front, the UAE's "2036 Water Security Strategy" explicitly targets increasing the treated water reuse rate to 95%, and plans 6 water-electricity network interconnection nodes, with expected cost savings exceeding 200亿 USD and a reduction of approximately 1亿 tons of carbon emissions from seawater desalination. For a desert city with annual rainfall of less than 100 millimeters, every drop of reclaimed water represents released desalination capacity — this is the underlying logic of "sewage treatment being repriced as a strategic asset."
Implications for Us: Observations from TIANYI TECH
The signals from the Dubai market offer three insights for domestic peers: First, ultra-large-scale investment in water infrastructure combined with 25-30年 long-term concessions is becoming the mainstream international transaction structure, favoring Chinese enterprises with integrated investment-construction-operation capabilities; Second, the target of 95% reclaimed water reuse rate means standards for advanced treatment and graded water supply will continue to escalate, resonating with our practice of "graded water supply and cascade utilization" in domestic industrial parks; Third, the leading position of Chinese engineering capabilities in overseas ultra-large water projects has been established, and the export of supporting membrane treatment equipment, intelligent monitoring, and operation services will be the next wave of opportunities. TIANYI TECH will continue to track the evolution of high-standard requirements in the Middle East Gulf market, aligning mature experience in reclaimed water reuse from domestic industrial parks with the strict specifications of overseas projects, contributing professional strength to the global expansion of "China Solutions."
About TIANYI TECH (TIANYI LIMITED): TIANYI TECH is deeply engaged in the fields of wastewater treatment and reclaimed water reuse, committed to providing efficient, low-carbon, and sustainable water treatment solutions for municipal and industrial clients.
Sources: The National (2026年8月22日), Smart Water Magazine, Seetao Middle East News and other public reports. This article is a compilation of industry news for readers' reference.
