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
  • Kuwait receives bids for Al-Khairan phase one IWPP

    2 June 2026

     

    Two developer consortiums have submitted bids for the first phase of Kuwait’s Al-Khairan independent water and power producer (IWPP) project, according to a source.

    Bids were received by the Kuwait Authority for Partnership Projects (Kapp) on 1 June.

    The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant. 

    The bidders include:

    • Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) 
    • Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)

    The Al-Khairan IWPP is being procured by Kapp in partnership with the Ministry of Electricity, Water & Renewable Energy (MEWRE).

    The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate in the tender.

    Ernst & Young, BNP Paribas, AtkinsRealis and Addleshaw Goddard are financial advisers on the project. Chadbourne & Parke is acting as legal adviser.

    The winning bidder will sign a set of public-private partnership agreements covering financing, design, construction, operation and transfer of the project. The energy conversion and water-purchase agreement is expected to cover a 25-year supply period.

    Future phases

    The Al-Khairan IWPP project is expected to run on low-sulphur fuel oil as the primary fuel and to accommodate crude oil, gas oil and natural gas as backup fuels. Future phases will further expand capacity.

    It is understood that the estimated $750m second phase of the Al-Khairan IWPP project will add a further 1,800MW of generation capacity through a combined-cycle gas-fired power plant.

    The project, first mooted over a decade ago, remains in the early development stages, with no plans currently to advance to procurement in 2026, a source said.

    According to the source, the immediate focus is on advancing plans for the 3,600MW Nuwaiseeb power and water desalination IWPP project.

    The Nuwaiseeb IWPP plant will have a desalination capacity of 75 million imperial gallons a day.

    Kapp plans to release a transaction advisory tender for the project by the end of the year.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17072685/main.jpg
    Mark Dowdall
  • Doosan confirms Saudi Jafurah 2 cogen contract

    2 June 2026

    South Korea’s Doosan Enerbility has confirmed it has signed an engineering, procurement and construction (EPC) contract worth about $556m for the second phase of the Jafurah combined heat and power (CHP) plant in Saudi Arabia.

    The project is being developed by Korea Electric Power Corporation (Kepco) in partnership with Saudi Aramco.

    Doosan said the contract covers design, equipment supply, installation, construction and commissioning of the facility.

    The Jafurah CHP phase 2 project will be built near the Jafurah gas field, about 400 kilometres east of Riyadh. Once operational, it will generate 330MW of electricity and produce 465 tonnes of steam an hour for the nearby gas field.

    According to the firm, the project’s main steam turbine will be supplied by Doosan Skoda Power, a subsidiary of Doosan Enerbility.

    WSP is acting as the project management consultant for the project, which is scheduled for completion in 2029.

    The Jafurah gas development is part of Aramco’s $3.2bn unconventional resources programme, which aims to develop shale gas in three areas. Jafurah lies southeast of Ghawar, the world’s largest conventional oil field.

    The programme is part of Riyadh’s plans under Vision 20230 to ensure the kingdom remains self-sufficient in gas supply amid rising demand from the residential and industrial power sectors.

    Jafurah phase one

    In February 2025, MEED exclusively reported that talks were under way to expand the capacity of the $500m Jafurah cogeneration independent steam and power plant (ISPP).

    Construction works were completed on the facility last November.

    At the time of its procurement, the plant’s first phase was to have a power capacity of 270-320MW, and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023.

    The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr by 2027, respectively.

    The oil giant issued the letter of award to Kepco for the contract to develop the Jafurah ISPP scheme in July 2022.

    Kepco subsequently awarded South Korea’s Doosan Heavy Industries & Construction the project’s EPC contract.

    US/India-based Synergy Consulting provided financial advisory services to Kepco on its bid.

    Sumitomo Mitsui Banking Corporation (SMBC) served as the client’s financial adviser for the project. Germany’s Fichtner Consulting Engineers is technical consultant, while the UK’s Wood Group is project management consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17072199/main.jpg
    Mark Dowdall
  • Al-Mabanee submits lowest bids for Kuwait infrastructure

    2 June 2026

    Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City.

    Local firm Al-Mabanee United Company has emerged as the lowest bidder for both contracts, submitting combined offers worth KD44m. Both packages entail the construction, completion and maintenance of services, infrastructure works and public buildings for different district centres within the city.

    The first contract covers the infrastructure and public buildings for the N3 District Centre. PAHW received proposals from eight bidders, with Al-Mabanee United Company submitting the lowest price at KD20.9m. The second-lowest offer was submitted by The Contractor General Trading & Contracting Company at KD22.4m, followed by Golden Engineering Group for General Trading & Contracting at KD22.7m, though Golden Engineering Group was flagged for not providing a bid bond.

    Al-Khonaini General Trading & Contracting Company, operating as Inshat Al-Khonaini, ranked fourth with a bid of KD22.7m, followed closely by Kuwait Industrial Centre Company at KD22.8m. Combined Group Contracting Company submitted a bid of KD23.8m, Al-Dar Engineering & Construction Company bid KD25.7m, and China’s Sichuan Road & Bridge Group Corporation submitted the highest active proposal at KD29m. 

    The second contract is for identical infrastructure and public building works at the N1 District Centre. Al-Mabanee United Company submitted the lowest bid of KD22.8m. Its closest competitor was The Contractor General Trading & Contracting Company, which submitted an offer of KD23.9m.

    Al-Khonaini General Trading & Contracting Company came in third with a bid of KD24.2m, followed by Kuwait Industrial Centre Company at KD24.4m and Golden Engineering Group for General Trading & Contracting at KD24.4m. Combined Group Contracting Company placed a bid of KD26m, Al-Dar Engineering & Construction Company bid KD26.5m, and United Construction Company, known as Al-Inshat Al-Muttahida, submitted an offer of KD 30.9m. Al-Ghanim International General Trading & Contracting filed the highest bid at KD344m and was also noted for lacking a bid bond.

    South Mutlaa Residential City is a large-scale planned development designed to accommodate around 400,000 residents in a modern, fully serviced urban environment. Once completed, it will offer contemporary housing alongside extensive logistical services and a wide range of public and commercial areas, including hospitals, schools and other social services.

    The project also includes major infrastructure works such as approximately 150 kilometres of roads and related structures, lighting and other public works, as well as integrated systems for water distribution, rainwater collection and sewage. In addition, it will provide the civil infrastructure needed for electricity distribution, telecommunications networks and traffic control to support a well-connected, functional city.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17071938/main.gif
    Colin Foreman
  • Local developer secures finance for three Riyadh projects

    2 June 2026

    Qimam Noshoz for Real Estate Development Company, a subsidiary of Saudi Arabia’s Banan Real Estate Company, has signed a sharia-compliant credit facility agreement worth SR84m ($22.4m) with Riyad Bank to fund three commercial, hospitality and sports developments in the kingdom.

    The financing agreement is split into two distinct tranches to align with the projects’ development timelines. The first tranche consists of SR49m with a maturity duration of seven years, while the remaining SR35m has been secured for an eight-year term.

    Qimam Noshoz will utilise the capital to fund construction works for the Al-Rahmaniyah Gem and Al-Wadi District Gem projects. Both of these projects are already leased to the fitness operator Armah Sports Company. The other project is an independent hotel located within the Al-Wadi District.

    The Al-Wadi development is designed as an integrated commercial complex spanning approximately 7,818.5 square metres of land, with a built-up area of about 975 square metres. It includes a men’s gym, a women’s gym and a hotel building.

    The Al-Rahmaniyah project is an integrated commercial development combining fitness facilities with retail. The asset features men’s and women’s gyms operating alongside an independent commercial zone.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17071628/main.jpg
    Colin Foreman
  • SLB wins $385m contract for Kuwait oil research centre

    2 June 2026

    Schlumberger Oilfield Eastern, a unit of the US-headquartered oilfield services company SLB, has been awarded a KD118m ($385m) contract to develop an oil and gas research centre in Kuwait.

    The contract was awarded by the state-owned upstream operator Kuwait Oil Company (KOC), according to a report by Kuwait’s Al-Rai newspaper.

    The Ahmadi Innovation Valley (AIV) project is planned as an advanced research and innovation hub equipped with specialised facilities and technical teams focused on applied research for Kuwait’s oil and gas sector.

    The contract was awarded after the Higher Purchase Committee (HPC) of Kuwait’s national oil and gas company Kuwait Petroleum Corporation (KPC) determined the bid to be compliant with the project’s technical and commercial requirements.

    In February 2025, KOC signed memorandums of understanding (MoUs) with five international oilfield service companies to support the development of the AIV initiative.

    These companies were:

    • SLB (US)
    • Baker Hughes (US)
    • Weatherford (US)
    • Halliburton (US)
    • National Energy Services Reunited (US)

    Under the preliminary agreements, each of the five companies agreed to establish a world-class research and development centre at the project site, focused on helping KOC meet challenges in the upstream sector.

    KOC’s CEO Ahmad Jaber Al-Eidan had said in February 2025 that the project will enable Kuwait to keep pace with global transformations while investing in advanced technologies to ensure the sector’s sustainability and achieve operational excellence.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17063475/main.gif
    Wil Crisp