DMCC FUTURE OF TRADE AGRI COMMODITIES SERIES: WATER EDITION
In the first edition of our Agri Commodities Series, we explore the rise of water as one of the world’s most valuable traded assets - from reshaping trade dynamics to its role in forging alliances and pioneering a wave of innovation in some of the most water-scarce regions on earth.
Upcoming Reports in the Five-Part Agri Commodities Series:
WATER'S TRANSFORMATION: FROM UTILITY TO STRATEGIC COMMODITY
As climate change accelerates and global populations surge, water scarcity has evolved from a local issue into a global concern with a profound impact on trade relations.
Water now underpins critical supply chains spanning agriculture, semiconductors, and AI infrastructure, making secure access a cornerstone of economic competitiveness and geopolitical influence.
Examine how water is evolving from a basic utility to a strategic commodity shaping the future of trade.
The Water Economy Blueprint
WATER’S RISE AS A CRITICAL RESOURCE
KEY PLAYERS AND POWER DYNAMICS
BUILDING THE GLOBAL WATER ECONOMY
THE UAE’S GLOBAL WATER ROLE
FUTURE TRENDS
01
WATER STRESS REDEFINING GLOBAL MARKETS
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As one of the world's most unequally distributed resources, water scarcity is becoming a critical vulnerability across key industries. Nearly 25% of food crops are grown in water-stressed regions, while technology sectors from semiconductor manufacturing to data centres face mounting pressure as operations intersect with water-scarce locations.
02
THE UNSEEN COST OF WATER TRADE
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What was once managed by local utilities is now controlled by a web of governments, multinationals, and financial players. As “virtual water” flows unseen through global trade - embedded in food, goods, and energy - new dependencies are forming. Water-rich countries like the United States and Australia are exporting billions of litres without shipping a drop, while water-scarce regions in the Middle East and Europe now rely on imports for up to 80% of their water needs.
03
BRIDGING THE $7 TRILLION GAP
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The World Bank estimates that up to $7 trillion must be mobilised by 2030 to meet goals for clean water and sanitation for all. Private capital remains hesitant, discouraged by long payback periods, regulatory complexity, and modest financial returns. However, investor interest is accelerating, with water performance emerging as a key competitive differentiator..
04
THE UAE: AN EMERGING WATER INNOVATION LEADER
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The UAE is transforming water scarcity into a competitive advantage through strategic investments and innovation. With nearly $2 billion allocated to new facilities and 40% of its water from desalination, the country operates some of the world's largest plants while pioneering solar-powered desalination technology. DMCC's Water Centre serves as the cornerstone of Dubai's water hub strategy, acting as a regional platform for water-tech trade, innovation and cross-border collaboration.
05
NEXT GENERATION SOLUTIONS: FROM SMART METERS TO WATER TOKENS
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Water is driving a wave of innovation across finance and infrastructure. Water tokens are redefining value in the digital age - turning freshwater into a tradeable, investable asset offering access to physical supply or market exposure through digital platforms. Meanwhile, smart water systems are transforming infrastructure, helping to reduce losses, improve efficiency, and reshape how we manage water at scale.
CASE STUDY: A COMPETITIVE ADVANTAGE IN THE WORLD’S MOST WATER-SCARCE REGION
DUBAI IS TURNING SCARCITY INTO STRATEGY
In one of the world’s driest nations, water isn’t just a necessity - it’s a national priority. With two-thirds of its water sourced beyond its borders, the UAE is fast becoming a global hub for aquatech and water trade.
In Dubai, DMCC’s Water Centre is driving trade and water security through partnerships with firms like Fresh Water Norway, while Veolia is building the world’s largest solar-powered desalination plant. DEWA’s AI-powered systems have delivered 100% smart meter coverage and saved over 12.5 billion gallons of water.
Backed by smart infrastructure and bold ambition, the UAE is not just securing supply but is actively shaping the future of water on a global scale.
The Future of Water
Key Recommendations
- Integrate virtual water accounting into trade policy
Create comprehensive water accounting standards for traded goods, improving supply chain visibility and incentivising water-efficient production practices. - Encourage cross-border water cooperation and data-sharing
Strengthen regional water governance by investing in shared desalination projects, coordinated monitoring systems and open data platforms that enable cross-border collaboration. - Water should be a core pillar of industrial strategy and innovation
As water extends beyond utilities usage, national strategies should embed water resiliency in industrial policy, innovation incentives, and infrastructure planning. - Build and scale industry-led water innovation zones
The private sector should test and deploy emerging water technologies in real-world environments. Free zones and industrial hubs should co-develop water innovation zones where startups, utilities and manufacturers can pilot frontier solutions at scale. - Water should play a key role in climate and infrastructure finance
Water must be repositioned as a core investment theme within climate finance. From desalination to digital management, water systems should be treated as climate assets, with new financing mechanisms that de-risk investment and scale sustainable water solutions.