United Arab Emirates (UAE) is currently the world’s eighth largest in proven reserves for oil and natural gas. Due to its fast economic and population growth in recent years, the demand of energy in UAE is climbing rapidly. UAE power generation comes largely from natural gas, and this contributes to a large portion of the country’s CO2 emissions. Part of this energy is also used to produce potable water due to the scarcity of freshwater in this region. The challenges faced by UAE would be more complicated in view of the interlinkage between power and water. Balancing sustainability growth of the nation’s development and the risk on climate change is the focus of this chapter. A multi-period planning strategy through 2050 is adopted for UAE’s power generation.