A Precious Commodity

Water is the single most important economic input to the global economy and, more specifically, to individual enterprises.

The disparity between supply of and demand for clean water is an inevitable problem; yet the persistent demographic demand for its uninterrupted supply makes water by far the most stable of all commodities. In order to maintain existing water infrastructure globally and also grow it to meet the targets of the UN, it is estimated that $1.5 trillion dollars needs to be spent over the next 20 years.

The World Bank has warned the countries of the Middle East and North Africa that they will face a crisis in water availability unless they develop more transparent and efficient policies. They estimate that by 2050, per capita water availability...

in the region will fall by 50%. In particular, the Gulf countries have low water reserves but at the same time are regarded as its largest global consumers. Having been neglected for years, the urgency of the issue is increasingly coming to the forefront. Population and economic growth are stretching the supply of fresh water and making the scarce commodity into an even more critical resource to humanity.

Meanwhile, governments in the Middle East region are expected to boost investments in fresh water projects by approximately 60% between 2005 and 2015 compared to the previous decade.
Where there is a problem, there must be a solution and where there is a solution, there must be an opportunity. Investing in the third largest industry in the world is a start. If all the fund flows that have been forecasted come to fruition, companies that operate in water markets will reap the benefits. New water-quality standards are being put in place in various countries like India and China, which will force new major investments in water treatment and purification. Furthermore, countries that currently mismanage their water supplies will have to unearth new sources of water, or invest into new infrastructure projects. No economy can flourish for long by polluting the water that sustains its workforce.
By en.v