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.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
Read the April 2026 MEED Business Review2 April 2026
-
-
Construction to start for Egypt animal feed project2 April 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Saudi Arabia seeks firms for food testing labs PPP project
2 April 2026
Saudi Arabia’s Ministry of Municipalities & Housing, in collaboration with the National Centre for Privatisation & PPP (NCP), has issued an expression of interest (EOI) notice for a contract to develop and operate municipal food safety laboratories under a public-private partnership (PPP) framework.
The project will be delivered on an equip, operate, maintain and transfer basis, with a contract duration of five years.
The EOI was issued on 1 April, with a submission deadline of 15 April.
The project scope covers the equipping, operation and maintenance of municipal food safety laboratories across five municipalities: Hafr Al-Batin, Northern Borders, Tabuk, Qassim and Al-Ahsa.
Key objectives include upgrading laboratory equipment, expanding chemical and microbiological testing capacity for food and water products, and enhancing testing accuracy to support laboratory compliance across the value chain. The project also aims to ensure effective knowledge transfer and a structured handover to the relevant municipalities at the end of the contract term.
NCP said in a statement: “The project is intended to strengthen public health and safety standards for citizens and residents of the kingdom in alignment with Saudi Vision 2030, while developing the municipal monitoring ecosystem, optimising food and water testing services, and enabling private sector participation in accordance with global best practices.”
In October last year, NCP highlighted the scale and diversity of opportunities in the kingdom’s PPP pipeline.
“At the moment, we have around 200 projects in the pipeline with a total value of roughly $190bn,” said Salman Badr, executive vice president – infrastructure advisory, NCP, during a MEED webinar.
The projects are spread across 17 sectors. “We have a very sizable programme, and it reflects the breadth of the kingdom’s transformation agenda,” he said.
NCP was established in 2017. It serves as the central authority and catalyst for designing and implementing privatisation and PPP projects across the kingdom.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16236864/main.gif -
Read the April 2026 MEED Business Review
2 April 2026
Download / Subscribe / 14-day trial access When the first missiles and drones were fired at the GCC on 28 February, the region’s economic story pivoted abruptly, from long-term vision-building to near-term resilience.
The conflict is now the Gulf’s most consequential economic stress test in a generation. It is challenging the safe haven premium that underpins capital inflows, while disrupting the physical networks that keep the region’s economies running, from energy exports and shipping lanes to airports and tourism.MEED editor Colin Foreman asks whether the GCC can sustain investor confidence as energy assets, trade routes, airports and banks absorb the shock. Read more here.
April’s market focus is on Saudi Arabia, where the Iran war is compounding the logic behind the kingdom’s strategic pivot in its investment plans.
This edition also includes MEED’s 2026 GCC contractor ranking, in which Chinese firms have surged to the top as Saudi spending cuts and geopolitical risks weigh on GCC construction activity.
In the latest issue, we explore the region’s evolving arbitration landscape; present exclusive leadership insight from Jacobs on the future of passenger rail in the Middle East; and talk to Leyla Abdimomunova, head of real estate and construction at the Public Investment Fund’s National Development Division, about remaking Saudi construction.
We hope our valued subscribers enjoy the April 2026 issue of MEED Business Review.
Must-read sections in the April 2026 issue of MEED Business Review include:
> AGENDA: Gulf economies under fireINDUSTRY REPORT:
GCC contractor ranking
> Construction guard undergoes a shift> LEGAL: Redefining the region’s arbitration landscape
> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race
> INTERVIEW: Leyla Abdimomunova, National Development Division, PIF
> LEADERSHIP: Shaping the future of passenger rail in the Middle East
> SAUDI MARKET FOCUS:
> COMMENT: Risk accelerates Saudi spending shift
> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
> DOWNSTREAM: Saudi downstream projects market enters lean period
> POWER: Wind power gathers pace in Saudi Arabia
> WATER: Sharakat plan signals next phase of Saudi water expansion
> CONSTRUCTION: Saudi construction enters a period of strategic readjustment
> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push> MEED COMMENTS:
> Iran war erodes LNG’s image of reliability
> Dubai's real estate faces a hard test
> Energy resilience matters as much as capacity
> Drawn-out conflict may shift planning priorities> GULF PROJECTS INDEX: Gulf index rises amid tensions
> FEBRUARY 2025 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The end of the republic and the end of times
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16222272/main.gif -
Consultants submit bids for Al-Maktoum airport metro link
2 April 2026
French firm Egis has emerged as the lowest bidder for the design contract for the Route 2020 extension, which will start from the Expo 2020 metro station and connect with Al-Maktoum International airport’s West Terminal.
Egis submitted the lowest bid, priced at AED232.6m ($63.3m).
The other bidders are:
- Halcrow International (UK): $66.4m
- Parsons (US): $71.3m
- Aecom (US): $82.6m
- Surbana Jurong (Singapore): $106m
The extension to the line will run for about 3 kilometres (km) and will feature two stations.
MEED understands that the invitation to bid was issued in January with a submission deadline of mid-March.
The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
The Roads & Transport Authority (RTA) awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.
Dubai’s plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to Al-Maktoum International airport. There are long-term plans for further extensions.
Other metro projects
In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.
The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.
The other metro lines in the pipeline are the Purple Line and the Pink Line, both of which are in the early stages of development.
Firms are also bidding to update the emirate’s rail masterplan. In October 2025, MEED reported that 10 firms had submitted offers to undertake the project.
The rail masterplan study will update and modify the RTA’s rail network, which includes the Dubai Metro and Dubai Tram. These plans will support Dubai’s 2040 urban masterplan, which aims for all residents to be within a 30-minute metro or light-rail trip to their place of work.
The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.
There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services as well as a high-speed rail connection.
In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.
The Blue Line consists of 14 stations, including three interchange stations at Al-Jaddaf, Al-Rashidiya and International City 1, as well as a station in Dubai Creek Harbour. By 2040, daily ridership on the Blue Line is projected to reach 320,000 passengers. It will be the first Dubai Metro line to cross Dubai Creek, doing so on a 1,300-metre viaduct.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16233295/main.jpg -
Construction to start for Egypt animal feed project
2 April 2026
Egypt’s Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, expects to start construction for its planned animal feed manufacturing plant within three months, according to industry sources.
The facility is due to be developed at Industria Asher in Egypt’s 10 Ramadan City, on a site covering around 34,000 square metres.
On 13 March, Elsewedy Industrial Development announced that it had signed a land agreement with New Hope Egypt, part of China’s New Hope Liuhe Group, to establish the new facility.
The plant is expected to have an annual production capacity of 400,000 tonnes of poultry and aquaculture feed products.
Approximately 50,000 tonnes a year of output is expected to be exported.
The project is projected to create around 500 direct jobs and up to 10,000 indirect jobs across supply chains and supporting services, according to Elsewedy Industrial Development.
The planned facility will be New Hope’s fifth production plant in Egypt, where the group has been operating since 2011.
Financial details for the new investment were not disclosed.
New Hope has said that its total investments in Egypt have reached about E£2.7bn ($51.5m), including four existing feed production plants and a chick-hatching company.
The company added that sales in the Egyptian market reached nearly 800,000 tonnes in 2025.
MEED’s March 2026 report on Egypt includes:
> COMMENT: Egypt’s crisis mode gives way to cautious revival
> GOVERNMENT: Egypt adapts its foreign policy approach
> ECONOMY & BANKING: Egypt nears return to economic stability
> OIL & GAS: Egypt’s oil and gas sector shows bright spots
> POWER & WATER: Egypt utility contracts hit $5bn decade peak
> CONSTRUCTION: Coastal destinations are a boon to Egyptian constructionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16226686/main.jpg -
Saudi Arabia prepares to tender 2GW battery storage project
2 April 2026
Saudi Power Procurement Company (SPPC) is preparing to begin procurement for the long-awaited 2,000MW first phase of a major battery energy storage system (bess) project catering to the grid.
The project, first mooted in 2023, is likely to be tendered this quarter, according to an industry source.
SPPC plans to procure up to 10GW, equivalent to 40 gigawatt-hours (GWh), of bess capacity by 2030.
As MEED understands, the bess project will be developed using an independent power producer (IPP) model.
MEED previously reported that the principal buyer conducted a market-sounding event for the project in December 2023, in line with a plan to launch the procurement process for one-fifth of that capacity the following year.
Since then, SPPC has procured and awarded developer contracts for four solar IPP projects and one wind IPP under round six of the kingdom’s National Renewable Energy Programme (NREP).
However, the bess IPP project has yet to advance to the next stage.
The 2GW first phase of the project involves building multiple battery energy storage systems across multiple locations, with individual capacities ranging from 50MW to 300MW.
The planned bess facilities are to be built near demand centres. They will boost the electricity grid’s spinning reserves as more renewable energy enters its electricity production mix.
Bess comprises rechargeable batteries that can store and discharge energy from various sources when needed. It is one of the key solutions being considered to address the intermittency of renewable energy sources.
US/India-based Synergy Consulting is advising SPPC on the planned bess IPP.
Growing renewable capacity
In 2023, Saudi Arabia raised its renewable energy target to 130GW by 2030. To achieve this, the kingdom needs to add approximately 20GW of capacity a year.
Since then, momentum for wind and solar projects has gathered pace as Saudi Arabia advances successive procurement rounds under the NREP.
In October 2025, SPPC awarded contracts to develop and operate five renewable energy projects under round six of the NREP.
These comprise four solar PV IPP projects and one wind IPP project, with a total combined capacity of 4,500MW.
By the end of 2025, the total renewable energy capacity tendered by SPPC under the NREP had reached 64GW, with the total signed capacity, following the signing of round six contracts, standing at 43.2GW.
The renewable energy programme aims to supply 50% of the kingdom’s electricity from renewable energy by 2030.
Developers are currently preparing bids for the seventh round of the NREP, which was tendered in January and will add 5,300MW of capacity.
The round includes four solar projects – Tabarjal 2 (1,400MW), Mawqqaq (600MW), Tathleeth (600MW) and South Al-Ula (500MW) – and two wind schemes: Bilgah (1,300MW) and Shagran (900MW).
Bids for the Bilgah and Shagra wind projects are due by 14 May, while the submission deadline for the remaining projects is 30 April.
MEED’s April 2026 report on Saudi Arabia includes:
> COMMENT: Risk accelerates Saudi spending shift
> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
> DOWNSTREAM: Saudi downstream projects market enters lean period
> POWER: Wind power gathers pace in Saudi Arabia
> WATER: Sharakat plan signals next phase of Saudi water expansion
> CONSTRUCTION: Saudi construction enters a period of strategic readjustment
> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure pushTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16219505/main.jpg