A Preliminary Assessment of Subsidies of Water Consumption: A Case Study “United Arab Emirates”

Many countries in the world are suffering from water scarcity, especially in the Arab region. However, in the United Arab Emirates (UAE) the total quantity of water consumption is about 4654 million cubic meters in the year 2007, while the availability of renewable water is about 808 million cubic meters annually. These figures reflect the non sustainable use of water in a country that is suffering from water scarcity. This paper focuses on the economic perspective of water, subsidy polices at the macro level in United Arab Emirates. The results of this study show that the total value of subsidy in UAE is AED1 (Arab Emirates Dirham) 7168 million per year. By applying suggested policies in water subsidy, the total reduction in water use is expected to reach 675 million cubic meters per year and the total money savings between AED 2765 to 8728 million per year depending on the chosen policies.