Before any other development, water preservation should be number 1 priority, along with reforestation and finding a way to sustain nomadic life whilst they stay put in one location- maybe with the government making camel feed pellets and selling it to nomads.
Realistically, the most biologically friendly solution to this issue is by replanting the area with trees, because the roots help water penetrate deeper into the soil at a faster rate under and around trees. This means less surface run-off and more water storage in the soil and a canopy of leaves, branches and trunks slows down the rain before it hits the ground simply by getting in the way, it's called interception.
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