Water scarcity is affecting countries across the world and is becoming increasingly front of mind with governments.

Global water demand has more than doubled since 1960, driven by population growth and industrialization. Water stress, defined as the share of renewable water withdrawn, reveals how tight the balance has become: “high” stress means at least 40% of resources are used yearly, while “extreme” stress means 80% or more.

According to the latest figures from WRI’s Aqueduct Water Risk Atlas, 25 nations, home to roughly a quarter of the world’s population, are under extreme water pressure.

Around four billion people globally experience high water stress for at least one month annually, highlighting how widespread the shortage has become.

Muslim countries feature prominently in the list of the most water-stressed countries. Across the 57 member states of the Organisation of Islamic Cooperation (OIC), many countries now rely on costly stopgaps like desalination and fossil groundwater. 

This article explores the ten most water-stressed OIC countries, ranked by the UN’s SDG 6.4.2 indicator, which measures freshwater withdrawals as a percentage of available renewable resources. Anything above 25% signals severe stress; above 100% means withdrawals exceed natural supply. 

Kuwait
With just 4.83 cubic meters of renewable water per person annually, Kuwait’s natural supply is effectively zero. By contrast, the Falkenmark index defines 500 m³ as the threshold for “absolute scarcity.” Kuwait’s staggering 3,851% water stress score means its withdrawals are almost forty times higher than its renewable supply. All this demand is met through desalination, powered by oil and gas. While desalination guarantees taps do not run dry, it comes with high costs that threaten fragile Gulf ecosystems. 

United Arab Emirates
The United Arab Emirates (UAE) is close behind, with a stress score of 1,667%. Like Kuwait, it sits on almost no renewable water - just 15.57 m³ per capita. Desalination has enabled this desert country to grow rapidly, but the risks are mounting. The UAE has invested in recycling wastewater and promoting water efficiency in agriculture, but the reality is that its natural endowment cannot support its population without permanent technological intervention.

Saudi Arabia
Saudi Arabia withdraws water at 993% of its renewable supply. With per-capita availability of just 71 m³, it falls deep into absolute scarcity.

For decades, the kingdom pursued self-sufficiency in wheat and other crops by pumping ancient non-renewable aquifers. That policy drained reserves at unsustainable rates and was eventually abandoned, but its legacy endures: vast tracts of desert now bear the scars of empty wells.

Today, Saudi Arabia is the world’s largest producer of desalinated water, and food security has shifted from local production to imports. But even desalination has limits, both environmental and financial. Rising demand, climate change, and energy transition pressures make the kingdom’s water future precarious.

Libya
In Libya, water stress stands at 817%, with just 105 m³ per capita of renewable supply. The country relies almost entirely on the Great Man-Made River Project, a colossal pipeline system that taps into fossil aquifers beneath the Sahara. Built in the 1980s, it once symbolized national pride and self-reliance. Today, the system is crumbling under the strain of war, neglect, and over-extraction.

Qatar
Qatar, despite its wealth, faces water stress of 431%. Per-capita renewable water stands at just 20.85 m³, among the lowest in the world. Like its Gulf neighbors, it has built an economy reliant on desalination, but with additional vulnerability: agriculture consumes a disproportionate share of water, even as local production remains limited.

Yemen
With a stress score of 170% and just 74 m³ per person, Yemenis face chronic shortages even in the best of times. Conflict has destroyed water infrastructure, leaving millions without safe access.

Algeria
Algeria records water stress of 138%. With 276 m³ per person, it is in absolute scarcity, worsened by erratic rainfall and climate variability. Agriculture consumes more than 70% of withdrawals, making the country especially vulnerable to drought. Algeria has invested in desalination and dams, but these measures are playing catch-up against demand that already outstrips renewable supply.

Bahrain
Bahrain faces water stress of 134% with per-capita renewable availability of just 74 m³. Historically reliant on underground aquifers, Bahrain has seen those reserves salinized by seawater intrusion. Today, desalination provides most drinking water, but the ecological costs of brine discharge weigh heavily on the surrounding marine environment.

Egypt
Even with the Nile, Egypt, with a population of over 110 million, is experiencing water stress. Its renewable supply amounts to just 584 m³ per person. Egypt’s stress score is 117%, meaning it withdraws more than the river can sustainably provide. Rapid population growth, upstream pressures from Ethiopia’s Grand Renaissance Dam, and climate change-induced variability in Nile flows are intensifying the strain. 

Oman
Rounding out the list is Oman, with stress at 117% and just 290 m³ per person. The country’s traditional aflaj irrigation systems, recognized as UNESCO heritage, have long allowed Omanis to live with scarce water.

But modern pressures - urban growth, rising consumption, and industrial demand - are pushing the system to breaking point. Oman has turned to desalination, yet its water balance remains fragile.

Looking ahead
Even under an optimistic climate scenario where global temperatures rise only 1.3°C to 2.4°C (2.3 °F to 4.3 °F) by 2100, another billion people could be living under extremely high water stress by 2050. Over the same period, global water demand is forecast to climb 20–25%, and the number of watersheds with highly unpredictable year-to-year supplies is expected to grow by about 19%.

The numbers make clear the need for multi-layered solutions, including better governance, reduced agricultural demand, investment in recycling and efficiency, and regional cooperation on shared rivers and aquifers.

The OIC, as a bloc, has an opportunity to lead in fostering the political cooperation that is often lacking in transboundary water management. Without that, the region risks turning water from a source of life into a trigger for conflict.

Oil prices rose on Tuesday after the Israeli military said it carried out a strike targeting Hamas leadership in Qatar’s capital Doha, widening its years-long military operations across the Middle East. 

Brent crude futures hit a session high of $67.30 at 3.01pm GMT time, before settling at $66.42. U.S. West Texas Intermediate crude futures shot to a session high of $63.58 before settling at $62.67.

Qatar said that the attack on the residential headquarters of several members of Hamas’ political bureau, was a “flagrant violation of all international laws and norms” and presented a serious threat to national security. 

White House Press Secretary Karoline Leavitt read a statement Tuesday during the press briefing in which she said that unilaterally bombing inside Qatar does not advance Israel or America's goals.

Qatari Amir Sheikh Tamim bin Hamad Al-Thani spoke with US President Donald Trump, who expressed his solidarity and assured that such a thing will not happen again on Qatari soil.

The UAE, Saudi Arabia and other Arab states, too, condemned the Israeli attack.

The oil benchmarks were already trading higher before the attacks, bolstered by a decision by producer group OPEC+ to opt for a modest output hike.

According to the World Food Program, food security is achieved when people have reliable access to sufficient, nutritious food. That might seem simple enough, but for decades, food security has meant emergency grain shipments in the 57-member Organisation of Islamic Cooperation (OIC).

Today, with climate shocks, volatile markets, and rising populations, it has become an even more pressing issue, making urgent investment essential.

The Global Food Security Index 2022 ranks most OIC states as "weak" or "very weak." While countries such as Bahrain, the UAE, and Uzbekistan are outliers with their progress, conditions have deteriorated at the other end in countries such as Somalia, Sudan, Syria, and Yemen between 2020 and 2022.

The FAO classifies 26 OIC countries as low-income food deficit states, and 22 require external assistance. Between 2020 and 2022, an average of 45% of the OIC's population faced moderate or severe food insecurity, with nearly half of the world's food crises occurring in OIC states.

Fragile systems on the brink of collapse
According to SESRIC's 2023 report, agriculture still provides livelihoods for millions and contributes more than 25% of GDP in 11 OIC member countries. But the region remains a net importer. In 2021, imports reached $292.9 billion, far outpacing exports at $188 billion, even as intra-OIC trade grew 85%.

The four pillars of food security reveal how exposed the region is. Domestic production has declined in many places, leaving states like Saudi Arabia, the UAE, and Jordan importing more than 90% of their cereals. Access to food is deeply uneven: food is affordable in the Gulf, but in sub-Saharan Africa, households spend more than their GDP-equivalent income on food, leaving them reliant on aid. 

Malnutrition is entrenched, with nearly one in five children stunted, especially in Niger and Libya, where poor sanitation compounds the crisis. Stability is the weakest pillar: wars, droughts, floods, pandemics, and market shocks repeatedly push communities to the brink. In 2022, 172,000 people in OIC states were classified as facing famine, with millions more in emergency hunger.

Financing gaps in the agriculture chain
Agriculture in OIC countries remains severely underfinanced, receiving less than 5% of total credit. Only about 39% of farmers have access to finance or insurance, leaving smallholders vulnerable to shocks.

Some relief has come from multilateral financing. The Islamic Development Bank (IsDB) has committed $8 billion through its Food Security Response Program, while its trade finance arm, ITFC, channelled $1.75 billion into food and agriculture in 2024. But more is needed.

Sporadic investment responses
Before examining each country's investments, it's important to acknowledge that food security is a complex and vast area that translates to different areas of concern depending on each country's topography and specific requirements.

With financing channels under strain, OIC governments and institutions are turning to targeted investments across key sectors:

Water and land: The UAE's Bustanica vertical farm — a $40 million Emirates Crop One venture — now supplies Emirates Airlines, while a joint venture between Plenty Unlimited Inc., a U.S.–based indoor vertical farming startup, and Mawarid Holding Investment, a subsidiary of Alpha Dhabi Holding in the UAE, is to build five indoor farms across the GCC. Morocco's OCP Group has committed $13 billion (2023–27) to expand fertilizer capacity and develop green ammonia, backed by a €350 million AFD loan.

Agro-inputs and fertilizer: Morocco's OCP is ramping up exports across Africa, while Nigeria's Dangote Fertiliser plant, with a capacity of 3 million tonnes a year, has become a key supplier. Bangladesh's 2025/26 ITFC plan allocates $2.75 billion for petroleum and fertilizers.

Poultry and livestock: Qatar's 2024–30 Food Security Strategy focuses on poultry and dairy, while Egypt, with support from ITFC and the World Bank, is expanding feed and milling capacity.

Grain and logistics: Wheat imports remain unavoidable. Saudi Arabia's SALIC bought an 80% stake in Olam Agri for $1.78 billion in 2025, securing access to origination in Asia and Africa. The UAE's ADQ owns 45% of Louis Dreyfus Company, while Egypt has shifted to private wheat contracts, supported by $1.3 billion in ITFC financing.

Technology and insurance: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) issued $1.12 billion in guarantees for food-related trade between 2022 and 2024. The OIC's dedicated agency, IOFS, has proposed a $1 billion Grain Fund to pool reserves and invest in climate-resilient crops.

Progress is beset by gaps
Progress is tangible. But gaps remain. Tariffs and weak logistics hamper intra-OIC food trade. Efficient logistics and transport infrastructure are vital for lowering trade costs and ensuring predictable food imports. While OIC trading hubs benefit from advanced systems, many smaller economies face high costs due to weak networks.

Investing in transport corridors, alongside supportive trade agreements, could reduce costs, boost trade flows, and strengthen food security. Between now and 2027, several milestones will test these strategies: the SALIC–Olam Agri integration, OCP's green ammonia rollout, and the launch of the IOFS Grain Fund.

Oman posted a fiscal deficit for the first six months of the year, as lower oil prices squeezed revenues for the GCC’s smallest economy and expenditures rose.  

The sultanate swung into deficit of $672 million (259 million Omani riyals) at the end of the second quarter, from a surplus of $1 billion (391 million Omani riyals) recorded from a year-earlier period. 

Revenues for the six months to the end of June fell 5.7% on an annual basis to $15.17 billion (5.8 billion Omani riyals), in large part due to a fall in hydrocarbon revenue, the Omani finance ministry said in its quarter bulletin. 

Net oil revenue dipped 10% to $7.8 billion at the end of Q2 2025, while net gas revenue slumped 6% to $2.3 billion. 

Average realized oil prices stood at $75 a barrel at the end of the year’s second quarter, down 8.5% from $82 per barrel from a year-earlier period. 

The sultanate’s expenditures climbed 5% year-on-year to reach $15.83 billion as the government stepped up development expenditure of ministries and government units. 

Subsidy allocations included $880 million to the electricity sector, $750 million to the social protection system, and $114 million for oil products. Public debt stood at $36.6 billion at the end of Q2 2025. 

The International Monetary Fund has projected Oman’s economy to grow at 2.4% this year and 3.7% in 2026. 

“This expected performance is driven by the phase-out of OPEC+ curbs and strong nonhydrocarbon growth, underpinned by ongoing investments in logistics, manufacturing, renewable energy, and tourism, but held back by the potential slowdown in key trading partners’ growth,” the IMF said after concluding a staff visit to Oman in May. 

The sultanate, which is the largest non-OPEC oil and natural gas producer in the Middle East, is part of the broader OPEC+ alliance. 

Inflation remains low, edging up from 0.6% in 2024 to 0.9% year-over-year during January-April 2025, the fund added. 

Oman is looking to diversify its sources of income away from oil and will impose a 5% levy on taxable income for individuals earning over $109,091 annually (42,000 Omani riyals), starting 2028.

The move supports the country's 2040 Vision under which it aims to achieve 15% of its gross domestic product from non-oil sources by 2030 and 18% by 2040. 

Syria has signed $14 billion worth of investment agreements on Wednesday in a ceremony attended by incumbent President Ahmad Al-Sharaa.

The agreements include a $4 billion deal signed with a consortium led by Qatar’s UCC Holding to redevelop Damascus International Airport and a $2 billion Damascus Metro deal with the UAE’s national investment corporation. 

Other agreements include a $2 billion deal for the Damascus Towers with Italy-based UBAKO, and other real estate projects such as Baramkeh Towers and Baramkeh Mall.  

Talal al-Hilali, Syrian Investment Authority’s direct general said that the meeting is a clear declaration that “Syria is open to investment [and] determined to build a prosperous future,” Syrian state news agency Sana reported. 

"These projects will make a qualitative shift in infrastructure and economic life in Syria” he added.

The airport project will be executed under a build-operate-transfer model in five phases, ultimately reaching a capacity of 31 million passengers annually. The initiative also includes developing the main access road to the airport, and a $250 million financing deal to purchase up to 10 Airbus A320 aircraft for the country's national carrier. 

US Special Envoy to Syria Thomas Barrack, who attended the ceremony, expressed the United States’ desire to strengthen Damascus as a center of trade and prosperity.

“The path to recovery must begin with the fits and starts of building a foundation of security and stability, then followed by government systems and ultimately enterprise and prosperity,” he wrote on social media platform X. 
 

Saudi Arabia’s sovereign wealth fund recorded a significant drop in net profit for 2024, impacted by rising interest rates, inflation and impairment losses. 

The Public Investment Fund (PIF) raked in $6.88 billion (25.8 billion Saudi riyals) in net profit last year, falling 60% from $17.18 billion (64.43 billion Saudi riyals) in 2023. 

The drop in net profit, which resulted from “adjustments to operational plans and cost estimates”, totalled less than 2% of total assets, state-run Saudi Press Agency said.  

The fund’s top line grew from $88 billion (331 billion Saudi riyals) in 2023 to $110 billion (413 billion Saudi riyals) last year.

Assets increased 18% from $977 billion (3.66 trillion Saudi riyals) at the end of 2023 to $1.15 trillion (4.32 trillion Saudi riyals)  by December 2024. 

PIF attributed revenue growth to increased earnings from several of its major portfolio companies, including Savvy Games Group, Ma’aden, STC, NCB, AviLease, and Gulf International Bank, dividend inflows from its crown jewel, Aramco, as well as returns from key projects.

Cash reserves dropped from 329.8 billion Saudi riyals in 2023 to 316 billion Saudi riyals in 2024. Loans and borrowings rose from 466 billion Saudi riyals in 2023 to 570 billion Saudi riyals to 2024.

The fund diversified its funding sources last year, including a $2 billion dollar-denominated Sukuk issuance, a £650 million debut bond issuance in British pounds, and a $15 billion refinancing of revolving credit facilities. Debt-to-asset ratio rose marginally to 13% last year.