Current water management and development models in the Southern and Eastern Mediterranean region are often not sustainable. The region is facing severe water scarcity, with one of the lowest per capita availability of freshwater in the world, which represents a serious constraint for socio-economic development and a potential cause of water-related conflicts. The Mediterranean region holds only 3% of the world's water resources but is home to more than 50% of the world's water-poor populations, or about 180 million people. The natural scarcity of water in the region is compounded by new threats such as population growth, increasing food and energy demand, pollution, transboundary competition, and the consequences of climate change such as extreme weather events. Thus, there is a clear link between water scarcity, food insecurity, and social instability, which in turn can trigger and intensify migration patterns. The World Bank reported in 2017 that in the Middle East and North Africa region, 60% of populations live in high or very high water stress areas, compared to a global average of 35%.
The COVID-19 pandemic has forced governments to rethink the linear models they have been following and consider circular growth models that build on nexus opportunities, especially between key resources such as water, energy, and agriculture. A circular growth model based on the water-energy-food nexus (WEF), or expanded to include the ecosystem nexus (WEFE), is seen as the way forward for many countries around the world. Such a model can address key issues holistically, such as the use of unconventional water resources, water losses, aging infrastructure, process controls, high operating costs, compliance costs, high unemployment, or low resource contribution to GDP. Operational resilience and economic sustainability through smart job creation became key issues after COVID. The SEMED region has specifically experienced high youth unemployment rates that can lead to civil unrest if not addressed quickly and intelligently. Digital transformation across the value chain is also seen as a key post-COVID priority due to the opportunity presented in improved operational cost efficiency and additional job creation opportunities. The Internet of Things, big data, knowledge management, and data for decision making are all seen as key future focus areas that SEMED countries will examine and begin to implement.