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This paper presents a new dynamic CGE model focused on water for NMB. It assesses the impacts of water scarcity in both the short and long term (up to 2030). It considers all water users and sectors while accounting for macroeconomic constraints and intersectoral linkages, and includes a detailed representation of water sources (tap water, reused wastewater, and desalinated seawater). Our results demonstrate the model’s utility in informing policymakers about the links between water security and economic growth (and even more socio-economic variables). With a projected 17% increase in water scarcity due to population growth, climate change, and poor resource management, the CGE model predicts a 0.82% decrease in NMB’s GDP by 2030. The long-term impact varies across sectors, with water-related sectors experiencing the most significant negative effects. The results suggest that policies promoting water conservation and reducing non-revenue water may be most effective in mitigating the negative impacts of water scarcity.