meed-logo

line1 line2 line3
SIGN IN / REGISTER

Egypt outlines future rail project plans

11 April 2025

Egypt is undertaking a transformative expansion of its railway infrastructure, aiming to enhance connectivity, boost economic development and promote sustainable transportation.

According to the official website of the National Authority for Tunnels (NAT), eight key projects, including metro lines, high-speed rail and light rail transit (LRT), are currently in the study stage.

The first project entails the extension of Cairo Metro Line 1 to Shubra El-Kheima. The project involves extending the metro’s Line 1 from El-Marg north to Shubra El-Kheima, spanning about 19 kilometres (km) with 14 stations.

The second project, Cairo Metro Line 6, is a 34km-long line running parallel to Line 1. It will run north-south through the Greater Cairo neighbourhoods of Shubra El-Kheima and New Maadi, ending at the beginning of Ain El-Sokhna Road, Al-Khosos.

The third project is Line 4 of the high-speed train network extending from Port Said to Abu Qir in Alexandria.

Located in the North Delta region, the network will link Port Said and Abu Qir City in Alexandria. The line will have a total length of about 250km and 14 stations, passing through six governorates: Port Said, Dakahlia, Damietta, Kafr El-Sheikh, Beheira and Alexandria.

The line will ultimately connect with the Alexandria metro system, which is under construction. NAT and the French-Egyptian consortium of the local Orascom Construction and Colas Rail signed a €1.3bn ($1.39 bn) contract to build the Alexandria metro system.

The expansion of Cairo Metro Line 4 is part of NAT’s planned comprehensive railway programme.

Cairo Metro’s Line 4 is expected to be built in four phases, with the first phase already under construction. The first phase stretches 19km and has 17 stations, starting from the western ring road and ending in Fustat, Old Cairo. 

NAT is currently studying phases two, three and four of Line 4.

The second phase of the project will extend over 33km and include 22 stations, connecting Fustat, Nasr City and New Cairo.

The third phase aims to connect the Ashgar Gardens and Al-Hosary areas with a rail line that will span over 16km.

The fourth phase will be over 38km long and will connect the Al-Rehab area with the capital’s international airport to the east of Cairo.

The fifth project is phase five of the LRT system that links Cairo to the New Administrative Capital and 10 Ramadan City.

Construction on the first and second phases is complete, while work is progressing on phases three and four of the scheme. According to data from the regional projects tracker MEED Projects, Beijing-headquartered China Railway Group and Avic International are responsible for all the construction work.

The fifth phase of the project extends from the New Administrative Capital, crossing the Cairo-Ain Sokhna Road, to the industrial zone of the New Administrative Capital. It is about 7.8km long and has one station.

The fifth phase of Cairo Metro’s Line 3 comprises the sixth project. It will extend over 7.5km and include five stations to connect Heliopolis with Cairo International airport.

The construction works on Line 3 are largely completed. In April, NAT signed a memorandum of understanding (MoU) for package 4b of the fourth phase with a consortium led by Vinci, Bouygues, Arab Contractors and Orascom Construction to submit the initial design and the technical and financial presentation of the project.

The seventh project comprises the rehabilitation and maintenance of Cairo Metro’s Line 2. The scope involves modernising 39 Line 2 trains to reduce travel times, accommodate increasing passenger numbers and reduce maintenance costs.

The construction works on Line 2 began in 2010 and were completed in 2023.

The final NAT project comprises a line extending from the end of the second phase of Cairo Metro’s Line 4 at Al-Rehab to Cairo International airport.

It will pass through New Cairo, Madinaty, Shorouk, Badr City and New Heliopolis and end at the New Administrative Capital to connect with the light rail train at the international airport station.

According to MEED Projects, Egypt has been the most active market for the rail sector in the Mena region, with contracts worth over $34bn awarded in the past decade.

Line 6 plan 

In November last year, MEED reported that Egypt is planning to issue the tender for the construction of Cairo Metro Line 6 in 2025. The project will be constructed in two phases, and works will be completed in eight years.

In October last year, Egypt’s Ministry of Transport appointed a joint venture of French engineering consulting firms Egis and Setec as the consultants to study the second phase of Cairo Metro Line 6.

In November 2022, MEED reported that France’s Alstom had signed a framework agreement with NAT to design, build and maintain Cairo Metro Line 6.

This was followed by NAT signing a memorandum of understanding (MoU) with Alstom for Line 6 in March 2022.

At the time of the MoU signing, Alstom was expected to work in consortium with French engineering company Colas and local companies Arab Contractors and Orascom on the project. Construction is expected to require six years to complete.

The project is backed by French funding as part of agreements signed by France’s Finance Minister Brune Le Maire during a trip to Egypt in 2021.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13663119/main.jpg
Yasir Iqbal

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aldar acquires Dubai Studio City development

    14 May 2026

    Abu Dhabi-based developer Aldar has acquired a residential and community retail development in Dubai Studio City from Dubai-based developer SRG for AED1.1bn ($300m).

    The deal is part of Aldar’s long-term strategy to build a high-quality, recurring-income portfolio and to scale its presence in the city.

    Scheduled for delivery in 2028, the project comprises six mid-rise buildings with 312 homes, including one-, two- and three-bedroom apartments and duplexes. It also includes a community mall with retail, leisure and food-and-beverage offerings, as well as a 16,000-square-metre park.

    “Dubai is a priority growth market for Aldar, and this acquisition reflects our belief in the city’s residential market and the central role that institutionally owned, professionally managed rental housing plays in meeting the needs of a growing population,” said Jassem Saleh Busaibe, CEO of Aldar Investment. 

    “Dubai Studio City’s established infrastructure, vibrant community and strong connectivity make it an excellent location for a high-quality, professionally managed living environment. This transaction is the latest step in a deliberate and broadening strategy to build a diversified portfolio of income-generating assets in Dubai, one that we expect to continue growing as the city attracts increasing global interest and talent,” he added. 

    The transaction expands Aldar’s activities in Dubai across a range of property types. Aldar Investment’s recurring-income portfolio in the emirate now includes residential, commercial, logistics and mixed-use assets. Key holdings include a mixed-use joint venture with Expo City Dubai, a signature office tower in Dubai International Financial Centre, a Grade A office building on Sheikh Zayed Road, and logistics facilities in National Industries Park and Dubai South.

    On the development front, Aldar’s partnership with Dubai Holding continues to gain traction, with three master-planned residential communities already launched and a pipeline exceeding 2.3 million sq m of new gross floor area. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16832033/main.jpg
    Colin Foreman
  • Algeria awards major gas project contract

    14 May 2026

     

    The Chinese-Algerian joint venture Groupement Sonatrach-Sinopec (GSS) has provisionally awarded a major contract to upgrade the gas lift compression unit at Algeria’s Zarzaitine field.

    The $238.8m contract has been awarded to a consortium of the Chinese companies Tianchen Engineering Corporation and Shaanxi Yanchang Petroleum.

    The client on the project is a partnership between Beijing-headquartered Sinopec and Algeria’s state-owned oil and gas company Sonatrach.

    The contract uses the engineering, procurement, construction and commissioning (EPCC) model and has a 45-month term.

    The gas lift unit was first installed in 1988. It processes and injects gas into the field to help boost oil production at the Zarzaitine oil field.

    Under the terms of the contract, the unit will be upgraded to boost its performance.

    Its functions include gas separation, filtration, compression and condensate recovery.

    The latest contract award comes at a time when Sonatrach is taking advantage of concerns about global gas and crude supplies to sign deals and push ahead with major upstream projects.

    In recent weeks, the country has launched an oil and gas licensing round, taken steps to boost crude production in the short term and awarded a $1.1bn oil and gas field development project.

    This comes as shipping remains disrupted through the Strait of Hormuz, a key global oil and gas supply route. The disruption began after the US and Israel attacked Iran on 28 February 2026, triggering a regional war.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16822685/main.jpg
    Wil Crisp
  • Kuwait continues to deploy oil drilling rigs

    14 May 2026

    Kuwait is continuing to deploy oil drilling rigs despite the ongoing crisis disrupting shipping through the Strait of Hormuz, according to a statement from Kuwaiti drilling and oilfield services provider Action Energy Company (AEC).

    In a statement released on 13 May, the company’s chief executive, Ahmad Mohammad Al-Ajlan, said it had secured awards for an additional seven rigs announced in January 2026, before the US and Israel’s 28 February attack on Iran.

    He added that deployment of these rigs was “progressing in line with schedule”.

    The ongoing deployment of the rigs comes amid significant disruption to Kuwait’s oil and gas sector.

    Kuwait’s oil and gas sector has been severely impacted by the blockade of the Strait of Hormuz, through which all of its crude exports are normally shipped.

    The country recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.

    The inability to export crude has quickly filled domestic storage capacity, forcing production cuts at the country’s largest oil fields.

    Rising revenues

    Despite the ongoing crisis, AEC has reported positive financial results for the first quarter of this year, which ended on 31 March.

    The company’s revenue grew by 69.2% year-on-year, primarily driven by the expansion of the operating rig fleet from 13 rigs in the first quarter of 2025 to 20 rigs in the first quarter of 2026, including the full-quarter contribution of 10 new rigs deployed during 2025.

    The company is benefitting from a substantial multi-year contracted backlog with the state-owned upstream operator, Kuwait Oil Company (KOC).

    Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, the chairman of AEC, said: “Despite regional disturbances during the period, AEC delivered performance in line with expectations, ensured uninterrupted support to KOC operations, and continued to operate with safety as a core value.”

    In January 2026, AEC announced two contract awards from KOC.

    The first contract, worth KD4.8m ($15.6m), covers two 750-horsepower (HP) rigs, which are expected to be deployed in the second half of the year.

    The second contract, worth KD62.1m ($201.5m), covers four 1,500 HP rigs and one 1,000 HP rig.

    These are expected to start operations from the fourth quarter of 2026 and the first quarter of 2027.

    Together, these awards bring the company’s rig fleet backlog to 27 rigs once fully mobilised, according to AEC.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16822649/main5931.jpg
    Wil Crisp
  • Aramco aims to raise $10bn with real estate deal

    14 May 2026

    Saudi Aramco is considering plans to generate more than $10bn by leveraging its real estate assets, which include its headquarters and campus in the kingdom’s Eastern Province. The move could involve a sale-and-leaseback structure, which would provide the oil giant with a significant influx of capital while allowing it to retain use of the properties.

    According to Bloomberg, Aramco is working with advisers to facilitate the transaction, which is expected to attract interest from major infrastructure and real estate investment funds. The initiative follows an $11bn lease agreement signed last year with a group led by BlackRock for facilities supporting the Jafurah gas project.

    Aramco is also reportedly pursuing deals involving its gas-fired power plants, water infrastructure, and stakes in oil export and storage terminals.

    These efforts to unlock capital come as the firm supports the kingdom’s economic transformation under Vision 2030 amid rising costs and regional conflict.

    Aramco reported $12bn of capital expenditure in the first quarter of this year, which it said supports its growth objectives. It previously guided for capex of $50bn to $55bn for the full year.

    Aramco’s capex in Q1 2026 was down 4% from the same period last year. The company spent $13.37bn in Q4 2025 and $52.2bn for the full year.

    Offshore oil and gas projects are understood to have accounted for a significant share of Aramco’s first-quarter capex.

    The company reported a sharp rise in profit in Q1 2026, beating analyst expectations as higher oil prices and increased crude sales offset geopolitical disruptions linked to shipping constraints in the Strait of Hormuz.

    Aramco’s adjusted net income rose nearly 26% to $33.6bn in Q1 2026, from $26.6bn a year earlier.

    Net income rose more than 25% year-on-year to $32.04bn, compared with $25.51bn in Q1 2025, driven by higher crude oil prices and increased sales volumes.

    Revenue increased 7% to $115.49bn, supported by higher prices for crude oil, refined products and chemicals, as well as higher sales volumes of crude and chemical products.

    On a quarterly basis, net income jumped 72.9% from Q4 2025, rising from $18.53bn to $32.04bn, helped by stronger margins and lower operating costs despite higher taxes and zakat payments.

    Cash flow from operating activities totalled $30.7bn, while free cash flow came in at $18.6bn, down slightly from $19.2bn a year earlier. This reflected a strategic $15.8bn increase in working capital aimed at ensuring business continuity.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16821588/main.gif
    Colin Foreman
  • GCCIA appoints contractor for Saudi substation expansion

    14 May 2026

    France-headquartered Cegelec has won an engineering, procurement and construction (EPC) contract to expand the Salwa 400kV substation in Saudi Arabia.

    The project is being developed under the Gulf Cooperation Council Interconnection Authority (GCCIA) with local firm Ekbart Engineering Company (EECC) serving as the civil sub-contractor.

    The GCCIA previously awarded a contract to Omexom for the construction of a 400kV overhead transmission line linking the Salwa substation with the Al-Silaa substation in Abu Dhabi.

    Cegelec and Omexom are both engineering subsidiaries of France’s Vinci Energies, part of the wider Vinci Group.

    The wider $230m project involves the construction of a 96-kilometre, double-circuit 400kV overhead line, the expansion of three key substations in Gonan, Al-Silaa and Salwa, and the installation of upgraded 400kV switchgear, circuit breakers and reactors.

    As MEED previously reported, the project is being financed by the Abu Dhabi Fund for Development, which signed a $205m financing agreement with the GCCIA last July.

    France’s EDF is acting as the main consultant on the project.

    The interconnection is intended to strengthen power grid connectivity between the UAE and Saudi Arabia. It forms part of wider GCC grid expansion plans, including the $700m Oman power grid interconnection, which began implementation in February.

    This project marks one of the largest expansions in the authority’s history and involves building a 400kV double-circuit transmission line extending about 530km between the two countries.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16818074/main.jpg
    Mark Dowdall