A senior UAE official has issued a compelling call for increased private investment in global water infrastructure, highlighting a critical $7 trillion financing gap that threatens water security worldwide. Abdulla Balalaa, Assistant Minister for Energy and Sustainability at the UAE Ministry of Foreign Affairs, addressed the pressing issue during the World Governments Summit, emphasizing that international financial institutions have consistently overlooked water as a profitable investment opportunity.
Balalaa presented a stark reality: while water represents an essential lifeline and reliable investment vehicle, more than 90% of current funding originates from public sources. This creates an unsustainable model for addressing the world’s growing water infrastructure needs. According to a December 2025 World Economic Forum report, this massive financing shortfall could leave billions vulnerable to outdated water systems by 2040.
The UAE official positioned this challenge as a significant opportunity for sovereign wealth funds and private investors. He highlighted the UAE’s business-friendly policies, transparent regulatory processes, and expanding market as ideal conditions for water sector investments. Balalaa made these remarks during a panel discussion previewing the upcoming UN Water Conference, which the UAE will co-host with Senegal in Abu Dhabi from December 2-4, 2026.
This third edition of the UN Water Conference will address Sustainable Development Goals related to water security, climate challenges, and infrastructure development. The UAE’s active role in hosting this international gathering underscores its strategic pivot toward positioning water security as both an economic opportunity and global priority, particularly for nations facing water scarcity challenges.