🧃 Gulf-Owned Farms Are Draining the US Southwest

If you've ever wondered what it feels like to be ghosted by your own groundwater, just ask Arizona.

Wells Drying Up While Profits Pour In

In Arizona’s La Paz County, water is running out. Wells are drying, aquifers are depleting, and locals are left wondering why Saudi and Emirati-owned farms can pump as much water as they like. Companies like Saudi Arabia’s Fondomonte and the UAE’s Al Dahra have been snapping up land and drawing groundwater to grow thirsty crops like alfalfa—only to ship it back home to feed their dairy industries.

The numbers are eye-watering. Fondomonte alone is estimated to use 18,000 acre-feet of water annually—enough to supply 54,000 homes—while paying just $25 an acre, way below market price. That’s a $3 million water bill they're avoiding. Meanwhile, the 16,000 residents of La Paz are left high and dry.

Virtual Water Leaves Real Damage

Saudi Arabia banned domestic alfalfa farming in 2018 to conserve water, but exporting the problem isn’t an issue. It’s a classic case of "virtual water"—shipping crops embedded with massive water footprints overseas. For the drought-stricken southwest, it’s a one-way drain on already stressed resources.

And it's not just the Saudis. Emirati company Al Dahra farms 30,000 acres in Arizona and California, also pumping water with minimal oversight. The environmental cost stays local while profits head abroad.

Worse still, many of these aquifers are considered “fossil water,” meaning once they’re gone, they’re gone for good.

Loopholes That Leave Locals Parched

How is this happening? Groundwater laws in parts of Arizona are practically non-existent. Some counties don’t require any measurement or restrictions on how much water farms can pump. Local leaders like La Paz’s Holly Irwin are pushing for change, but legislative efforts to regulate groundwater have been stuck for years.

With little political momentum, Gulf-owned farms continue to drain local resources with minimal costs or oversight.

Takeaway: While local families in the US southwest watch their wells run dry, foreign investors are cashing in on cheap, unrestricted water. Until laws catch up, Arizona's aquifers are open season for anyone with a checkbook.