Qiddiya high-speed rail PPP is a bold but risky move
20 October 2025
Commentary
Yasir Iqbal
Construction writer
Saudi Arabia’s Qiddiya high-speed rail project is the latest GCC rail scheme to be structured as a public-private partnership (PPP). Past schemes planned as PPPs include railways serving mining assets in Oman, Bahrain’s metro network, and the Red and Green Line extensions of the Dubai Metro. However, none of these projects moved into construction as a PPP.
The Qiddiya high-speed rail scheme offers an opportunity to set a successful precedent for the region. Led by the Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, the project represents a litmus test of the kingdom’s ability to leverage private capital and expertise to deliver complex mobility infrastructure.
The project will connect King Salman International airport and King Abdullah Financial District (KAFD) with Qiddiya City, transporting passengers at speeds of up to 250 kilometres an hour and reducing travel time to just 30 minutes. Beyond its engineering appeal, it is the project’s PPP structure that makes it transformative.
It signals a maturing market increasingly willing to share risks and rewards between public and private players – a model proven globally to drive efficiency, innovation and long-term value for money.
International experience offers key lessons for the success of the Qiddiya high-speed rail project. As highlighted in a KPMG report, factors such as effective procurement and financing, political commitment and strong operational planning are critical.
The Hong Kong Mass Transit Railway system, for example, succeeded by aligning rail development with real estate value capture.
Similarly, projects such as the Nottingham Express Transit in the UK and Manila’s Mass Transit Railway demonstrate that transparent risk allocation and a robust business case can lead to financial and policy success.
Despite these successes, it is worth noting that PPPs have fallen out of favour in some countries due to cost overruns, inflexible contracts and disputes over value for money. These experiences serve as a cautionary reminder for Saudi Arabia.
While PPPs can attract private investment and accelerate delivery, they also require careful structuring, rigorous due diligence and transparent governance. The Saudi government must, therefore, maintain oversight while allowing private partners the flexibility to innovate.
For the Qiddiya high-speed rail, meticulous project planning, a credible feasibility framework and maintaining private sector confidence in regulatory stability will be vital.
If executed well, the Qiddiya high-speed rail could become a benchmark for future PPP ventures in the Gulf. The scheme stands as both a symbol and a significant challenge in Saudi Arabia’s broader drive to modernise its transport sector under Vision 2030.
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