Saudi Arabia is the third-largest per capita water user worldwide and has addressed the disparity between its renewable water resources and domestic demand primarily through desalination and the abstraction of non-renewable groundwater. This study evaluates the potential costs of this approach in the industrial and municipal sectors, exploring economic, energy, and environmental costs (including CO2 emissions and possible coastal impacts). Although the energy intensity of desalination is a global concern, it is particularly urgent to rethink water supply options in Saudi Arabia because the entirety of its natural gas production is consumed domestically, primarily in petrochemical and desalination plants.

Industrial and urban water reuse should be considered along with desalination as options for water supply in Saudi Arabia. Although the Saudi Ministry for Water and Electricity (MoWE) has estimated that an investment of $53 billion will be required for water desalination projects over the next 15 years [1], the evolving necessity to conserve fossil resources and mitigate GHG emissions requires Saudi policy makers to weigh in much more heavily the energy and environmental costs of desalination. Increasing water tariffs for groundwater and desalinated water to more adequately represent the costs of water supply could encourage conservation, but also reuse, which may be more appropriate for many inland and high-altitude cities.

Extracting, delivering, and disposing water requires energy, and similarly, many processes for extracting and refining various fuel sources and producing electricity use water. This so-called 'water–energy nexus', is important to understand due to increasing energy demands and decreasing freshwater supplies in many areas. This paper performs a country-level quantitative assessment of this nexus in the MENA region.