Why is water called an universal solvent?

Water (H${}_2$O) is a polar covalent compound. Hence, it can dissolve many compounds such as polar covalent compounds. Due to the high charge separation, it can dissolve even ionic compounds. Owing to its ability to form hydrogen bonding also, it can dissolve a number of polar covalent compounds. As such it dissolves many types of substances in it and hence is called universal solvent.