DEWA and ACWA Sign Agreements for 60 Million Gallons a Day Hassyan Project

Key Facts

Dubai Electricity and Water Authority (DEWA) and ACWA have signed a water purchase agreement and a shareholders’ agreement for the second phase of the Hassyan seawater desalination project, according to a statement issued by the authority on November 6, 2026. The water purchase agreement runs for 30 years, with planned production capacity for the second phase of about 60 million imperial gallons a day, equivalent to 272,000 cubic meters. DEWA will own 60% of the project company, while ACWA will own 40%. Saeed Mohammed Al Tayer, the authority’s chief executive, said the agreements reflect a commitment to strengthening Dubai’s water security through sustainable sources and reverse osmosis technology.

Under the project structure, the project company will develop, finance, build and operate the plant, while the water purchase agreement sets the framework for supplying its output over the contract term. DEWA’s 60% stake gives it a majority in the company, while ACWA owns the remaining 40%. The arrangement follows the independent water producer model the authority uses to develop desalination projects. The second phase will use seawater reverse osmosis technology, which Al Tayer cited as part of the authority’s efforts to strengthen water security. He said the agreements reflect a commitment to bolstering Dubai’s water security through sustainable sources.

The new phase adds to Hassyan’s first phase, which has capacity of 180 million imperial gallons a day and was developed with an investment of AED 3.357 billion. DEWA describes the first phase as its first project under the independent water producer model. Combined, the two phases will give the complex production capacity of 240 million imperial gallons a day. The authority says this makes Hassyan the world’s largest seawater reverse osmosis desalination plant. The second phase therefore adds capacity to the complex; it is not an equivalent increase in Dubai’s total daily output.

DEWA links the project to broader water and energy security plans for the UAE and Dubai. The authority includes it in the UAE Water Security Strategy 2036 and the Dubai Clean Energy Strategy 2050, and says it supports the goal of reaching net zero by 2050. DEWA estimates that the emirate’s total desalinated water production capacity will reach about 735 million imperial gallons a day by 2029, after both Hassyan phases are completed. This figure covers Dubai’s total desalination capacity, while 240 million gallons a day refers to the Hassyan complex alone. The figures place the project within the emirate’s long-term expansion of desalinated water production capacity.

DEWA previously selected ACWA on August 16, 2023, as its preferred bidder for the first phase, planned with capacity of 180 million imperial gallons a day and an investment of AED 3.357 billion. In that announcement, the authority said the lowest bid for desalinated water was $0.36536 per cubic meter. DEWA and ACWA then announced financial close for the first phase on April 17, 2024, and the authority described the project as a key part of its strategy to expand Dubai’s desalination capacity. In its 2023 announcement, DEWA estimated the emirate’s capacity at about 490 million gallons a day at the time and forecast it would rise to 670 million in 2026 when the first project was completed. The authority’s latest estimate raises the target to about 735 million gallons a day by 2029, with both phases completed.