ACWA Power signs $478 million Dubai desalination deal with DEWA

Summary

• ACWA Power will build and operate Hassyan independent seawater desalination plant in Dubai under a 30-year agreement.
• The $478 million project uses reverse osmosis and will produce roughly 272,000 cubic meters of water daily.
• The deal deepens the Saudi developer's foothold in the United Arab Emirates desalination market.

The latest

Saudi developer ACWA Power has signed an agreement with the Dubai Electricity and Water Authority to develop, finance, build and operate the Hassyan independent seawater desalination project, valued at $478 million over a 30-year term. ACWA Power said it will hold a 40% stake in the venture. The disclosure was published on the Saudi exchange, Tadawul.

Details

• The agreement: ACWA Power said the contract with DEWA covers the development, financing, construction and operation of the Hassyan independent seawater desalination plant in Dubai. The arrangement runs for 30 years, a term typical of water purchase structures in which the offtaker commits to buying output over the asset's operating life.
• The numbers: The company put the total project value at $478 million, equivalent to about 1.79 billion Saudi riyals. ACWA Power's declared share of the project is 40%; the statement did not identify the partners holding the remaining equity.
• The technology: The plant will rely on reverse osmosis, the membrane-based desalination method that has displaced older thermal systems across the Gulf because it consumes significantly less energy per cubic meter of water produced.
• Capacity: Designed output is roughly 272,000 cubic meters of desalinated water per day, according to the company. The disclosure did not break down how that volume fits into DEWA's wider production capacity or its projected demand for the coming decade.
• Financial impact: ACWA Power told the exchange that the financial effect of the agreement on its results is expected to begin in 2030, once the project is complete. No interim construction milestones or a start date for works were specified in the statement.
• The counterparty: DEWA is the state utility responsible for electricity and water supply in Dubai and has repeatedly used independent producer models, in which private developers finance and operate assets and sell output back to the authority under long-term contracts.
• The disclosure: The announcement was published on the Tadawul website on 28 October 2026, in line with listed-company rules requiring immediate notification of material contracts. Argaam reported the filing.
• The footprint: The project extends ACWA Power's presence in the Emirati water sector, placing the Riyadh-listed developer alongside a Dubai government utility in an asset that will supply the emirate's municipal network for three decades.

Background

ACWA Power develops power generation and desalination assets across the Middle East, Africa and Asia, typically as a minority or majority equity partner in project companies that sell output to state utilities under long-term agreements.

Between the lines

The 2030 start for financial impact indicates a multi-year construction phase before any revenue is recognized, meaning the $478 million figure reflects total project value rather than near-term earnings. ACWA Power's 40% stake also means its direct exposure is a fraction of the headline number, with the balance carried by unnamed partners.

What's next

Watch for financial close and the naming of remaining equity partners, construction start dates at Hassyan, and whether ACWA Power quantifies the project's expected contribution in upcoming quarterly filings.

Source: Tadawul