meed-logo

line1 line2 line3
SIGN IN / REGISTER

GCC’s ambitious railway project gains momentum

17 July 2023

 

Register for MEED's guest programme 

The GCC railway project has continued to make progress in 2023. After an official announcement by the GCC secretariat in January 2021 that effectively restarted the project, a string of recent moves and statements have meant all six members of the bloc have either declared or signalled their plans for their sections of the rail network.

In early July, officials from Bahrain's Ministry of Transportation and Telecommunications met with a delegation from the GCC Rail Authority led by Nasser Hamad al-Qahtani and Abdullah bin Abdulaziz al-Samaani.

The two sides discussed the railway connecting Saudi Arabia and Bahrain across the proposed King Hamad Causeway and reviewed the progress of the new crossing. The meeting also included the exchange of information regarding engineering designs and contact points between the two countries.

The railway crossing the King Hamad Causeway will extend inland by another 21 kilometres into Saudi Arabia and 24km into Bahrain. It is understood the railway route extending inland into Bahrain will eventually link up with the planned GCC railway network.

In November 2019, the Netherlands' KPMG, US-based Aecom and Germany-headquartered CMS were appointed as advisers for the project.

Kuwait advances

The meeting between the two countries follows developments elsewhere in the GCC. In May, Saudi Arabia’s King Salman bin Abdulaziz al-Saud authorised the minister of transport and logistics services as his representative to discuss a draft agreement with Kuwait regarding a rail link connecting the two countries.

MEED reported in early May that Saudi Arabia Railways (SAR) and the Saudi Public Transport Authority had appointed France’s Systra to complete the feasibility study for a high-speed rail link connecting the kingdom and Kuwait.

Bid submission is currently in progress for study and detailed design services for the rolling stock and civil works packages 1 and 2.

Kuwait is also pushing ahead with the Kuwait National Rail Road (KNRR) project. The scheme is seen as a significant component of the country's contribution to the GCC railway. The project owner, Kuwait’s Public Authority for Roads and Land Transportation (Part), through the Kuwait Authority for Partnership Projects (Kapp), issued a request for proposals (RFP) in January this year. The original closing date was 21 February and the deadline was then extended to 11 July.

Oman links

Progress is also being made on the railway linking the UAE and Oman. In September 2022, the two countries established Oman-Etihad Rail Company to implement the 303-kilometre network. The project received a further boost after Oman-Etihad Rail Company inked a strategic agreement with Abu Dhabi-based Mubadala Investment Company to support its development.

The prequalification process is underway for the UAE Civil Package A, Oman Civil Package B and Oman Civil Package C projects, and is expected to be completed in the third quarter of 2023. Contractors based in the UAE, Oman, Turkiye, Greece, India and China have started seeking to qualify for the packages on the $3bn rail connection.

“The prequalification process is currently under way, and we hope to award [the project] on schedule as planned,” said UAE Minister of Energy and Infrastructure, and Oman-Etihad Rail Company chairman of the board of directors, Suhail Mohamed Faraj al-Mazrouei, in an interview with MEED.

Oman-Etihad Rail Company also signed a memorandum of understanding (MoU) with Brazilian mining company Vale to explore using rail to transport iron ore and its derivatives between Oman and the UAE. Railways could connect Vale’s industrial complex in Oman’s Sohar Port and Freezone and its planned development, known as a Mega Hub, at Khalifa Economic Zones Abu Dhabi (Kezad).

Oman is also collaborating with Saudi Arabia for the establishment of a railway link connecting Duqm with Riyadh through the Ibri border. The railway line aims to serve the upcoming economic zone that the two countries are planning to build in the Al-Dhahirah area.

Qatar connection

Meanwhile, GCC railway projects have been progressing with renewed impetus following the Al-Ula declaration signed by the six member states in January 2021. Under the declaration, Saudi Arabia and Qatar agreed to restore their diplomatic ties and restart the rail link connecting the two countries.

In July 2021, Systra was selected to conduct a feasibility study on the proposed high-speed rail line connecting Riyadh and Doha, which could use maglev technology. The study works are still ongoing on the project. The railway line could be about 550 kilometres long. As well as maglev, the study will also evaluate using other high-speed rail technologies.

The restoration of diplomatic ties between Qatar and Bahrain in mid-April will improve the prospects of the $4bn Qatar-Bahrain Causeway. In March 2022, Manama called for work to restart on the causeway, which is a key link for the GCC rail network.

Rail authority

GCC leaders approved the establishment of the GCC Rail Authority in January 2022. The company was entrusted with the overall policymaking and coordination among member states to ensure smooth delivery and operations of the overall scheme.

With high project activity levels, governments in spending mode, and the agreements under the Al-Ula declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If the railway is finally completed, it could prove transformative for a region that feels connected to the world but divided between its constituent parts.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11013015/main.gif
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Egypt approves plans for 869MW wind power plant

    22 June 2026

    Egypt’s Cabinet has approved plans for French renewable energy developer Voltalia to develop an 869MW wind power project.

    The scheme will be built on land allocated by the New & Renewable Energy Authority (NREA), according to a statement posted by the Cabinet following its most recent weekly meeting.

    Voltalia will make an initial investment of $53m and has committed to achieving commercial operations by December 2028.

    Voltalia already operates the 32MW Ra solar plant at the Benban solar complex in Aswan and is expanding its renewable energy portfolio in Egypt.

    Previously, in 2024, it signed a framework agreement with Egypt’s Taqa Arabia to develop a green hydrogen and renewable power cluster near the Ain Sokhna port in the Suez Canal Economic Zone.

    The green hydrogen development is planned in two phases, each centred on a 500MW electrolyser powered by more than 1.3GW of renewable generation capacity. The project, still in its early stages, is expected to produce up to 350,000 tonnes of green ammonia a year.

    Voltalia’s partnership with Taqa Arabia also includes plans for a 3.2GW hybrid wind and solar project to repower the existing 545MW Zafarana wind farm in Suez Governorate. The Cabinet statement did not indicate whether the newly approved 869MW wind project forms part of that proposal.

    Meanwhile, the developer won another contract, earlier this year, to develop a 132MW solar power project in Tunisia’s Gabes region.

    The project, known as Wadi, marked Voltalia’s third major solar award in the country after the Sagdoud and Menzel Habib projects awarded in 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17376730/main.jpg
    Mark Dowdall
  • Local firm signs Jeddah drainage contracts

    22 June 2026

    Local contractor Alkhorayef Water & Power Technologies (AWPT) has announced it has signed two contracts with Jeddah Municipality to operate and maintain stormwater and surface water drainage networks across the city.

    The contracts have a combined value of SR202.06m ($53.9m), and each will run for five years.

    The first contract, valued at SR108.46m ($28.9m), covers the operation and cleaning of stormwater and surface water networks in the South and Al-Malisa sub-municipalities.

    The second contract, worth SR93.59m ($25m), covers similar services for the Airport Sub-Municipality.

    In March, MEED reported that the firm had won a long-term contract to carry out work in the airport’s sub-municipality area. The agreement was signed on 16 June.

    Elsewhere, construction has yet to begin on phases one and two of the King Abdullah Road-Falasteen Road tunnel project, each valued at about $175m.

    According to sources, Jeddah Municipality selected Saudi contractor Thrustboring Construction Company to build the large-diameter stormwater drainage tunnels in 2025. However, an official agreement has yet to be signed.

    The municipality was also previously planning to rehabilitate the existing Al-Zahra pumping station. Prequalification for the project began in 2020; however, it is understood that the main contact tender was cancelled last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17376097/main.jpg
    Mark Dowdall
  • Qiddiya seeks contractors for indoor arena project

    22 June 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian gigaproject developer Qiddiya Investment Company (QIC) has invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.

    The invitation was issued on 21 May, with a submission deadline of 28 June.

    The multipurpose arena is designed to International Olympic Committee standards.

    It will be located in District 18, in the Uptown South area of Qiddiya.

    Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.

    The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.

    It will have a seating capacity of 18,000 spectators.

    The project is scheduled for completion by 2030.

    QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17375504/main.jpg
    Yasir Iqbal
  • Egypt signs gas deal with Harbour Energy

    22 June 2026

    Egypt’s Ministry of Petroleum & Mineral Resources has signed a new agreement with London-headquartered Harbour Energy.

    Under the scope of the agreement, Harbour Energy will drill two new exploration wells and carry out maintenance work for one of the existing wells within the Dsouq-1 development contract.

    Harbour Energy committed an initial $6m investment and a $1m signing bonus for the Dsouq concession. Total investment could rise to $18m if commercial discoveries are made.

    The signing was witnessed by Egypt’s Minister of Petroleum, Karim Badawi.

    He said that his ministry is continuing to implement a package of investment measures and incentives aimed at encouraging partners to increase investments and intensify exploration, development and production activities.

    The agreement was signed by Syed Saleem, a member of the executive branch of the state-owned Egyptian Natural Gas Holding Company (EGAS), and Samah Sabry, the executive director of Harbour Energy for the Middle East and North Africa region.

    Harbour Energy drilled two new wells in Egypt during the fiscal year 2025/2026, resulting in the addition of reserves estimated at 35 billion cubic feet of gas.

    The company aims to drill three new exploration wells during the fiscal year 2026/2027.

    Egypt is currently pushing to boost the production of both oil and gas in its territory.

    Earlier this month, Egypt’s Ministry of Petroleum & Mineral Resources announced that it had fully settled all outstanding arrears owed to oil and gas companies.

    Two years ago, in June 2024, the country owed approximately $6.1bn to partners in the oil and gas sector.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17374536/main4731.jpg
    Wil Crisp
  • Iran invites companies to register for Kharg Oil Terminal development

    22 June 2026

     

    Iran has invited companies to participate in a project to develop the existing Kharg Oil Terminal, according to documents released by the state-owned National Iranian Oil Company and Iranian Oil Terminals Company.

    The project focuses on developing units capable of receiving, storing and exporting extra-heavy West Karun crude oil at a rate of 700,000 barrels a day.

    The scope of the project includes design, purchase, installation and commissioning of the new facility.

    The contract will use the engineering, procurement and construction (EPC) model, according to the tender documents.

    The project aims to use existing oil storage tanks and reconstruct the deepwater crude oil export berth known as Berth Number One.

    The berth known as Berth Number Three will serve as a backup berth for the project.

    The winning bidder for the contract will be responsible for a range of works, including:

    • Carrying out all stages of verification of the project’s basic design, design and engineering
    • Supply and procurement of goods and materials
    • Execution and installation
    • Pre-commissioning and commissioning

    The project is expected to take 30 months to complete, and the winning contractor will also be responsible for maintaining the facility for a further 12 months.

    Companies that wish to submit bids need to do so through Iran’s Government Electronic Procurement System (Setad).

    Companies interested in participating in the tender have seven days from the publication of the tender notice to receive the documents.

    They then have a further 14 days to upload the required documents into the government procurement system.

    Iran exports most of its oil via the Kharg Oil Terminal on Kharg Island.

    US President Donald Trump said strikes in mid-March “obliterated” Kharg’s military assets but did not target the island’s oil infrastructure.

    He warned that if Iran continued disrupting traffic through the Strait of Hormuz, he would reconsider the decision to spare energy targets on the island.

    Trump has threatened several times to take “control” of Kharg Island, but he has not yet followed through on this threat.

    The small coral island is located 33 kilometres from Iran’s coast and has strategic importance because Iran’s coastline is mostly too shallow for large tanker ships to dock.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17374518/main.jpg
    Wil Crisp