Oman plans Salalah-Thumrait rail PPP
8 January 2026
Oman’s Ministry of Transport, Communications & Information Technology is planning to establish a new commercial railway line to transport essential supplies between Salalah and Thumrait.
The project is planned to be implemented as a public-private partnership (PPP).
The scheme comprises the construction of a railway line spanning approximately 150 to 170 kilometres (km).
It will have two main stations: Salalah Station, near the port and food storage facilities, and Thumrait Station, which will serve as a distribution hub for the surrounding areas.
The trains will be equipped with refrigerated and dry containers.
The project aims to reduce the transportation costs between the two areas by 20%-30%.
Oman plans to pitch the project to major food companies to secure long-term transport contracts.
The proposed project timeline is:
- 2025: Conduct economic, technical and environmental feasibility studies
- 2026: Launch the project for investment on a PPP basis
- 2027-30: Construction of the railway line
- 2031: Trial operations
- 2032: Full commercial operations
The project is touted as a key initiative under Oman Vision 2040, which aims to transform the sultanate into a global logistics hub.
This year, the country will begin the 11th phase of its Vision 2040 development plan five-year cycle, in which both diversification and improved performance feature strongly.
In November last year, Ministry of Economy undersecretary Nasser Rashid Al-Maawali set out the objectives of the 2026-30 plan to the State Council. Among the points he highlighted were a focus on building a diversified and sustainable economy, greater economic decentralisation and raising institutional performance.
Developing the non-oil economy remains a critical aspect of future growth, with key target sectors including trade and logistics.
In 2025, the sultanate reached a critical inflection point in its economic diversification journey, as non-hydrocarbon activity rose to account for more than 70% of GDP.
This reflects a government-led diversification agenda that has accelerated since the pandemic, with redoubled support for logistics, tourism, mining and green energy.
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The contract, titled TF-15-S1 Supervision of Stormwater Drainage System projects – Package 2, will be awarded as a single package with dedicated teams assigned to each project.
The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
The second, TF-15-C2, will deliver stormwater links along Umm Suqeim Road to serve the Al-Barsha and Al-Quoz communities.
The third project, TF-13-C1, focuses on developing a drainage system for the Al-Marmum area.
Several engineering, procurement and construction (EPC) contracts have been awarded under the Tasreef initiative, which aims to expand Dubai’s rainwater drainage capacity by 700% by 2033
In January, local firm DeTech Contracting won the main contract to construct a stormwater drainage system in Jebel Ali.
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Separately, Dubai Municipality has opened bidding for EPC contracts to expand and rehabilitate the emirate’s sewerage networks.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
These include:
DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
DP4 assets: DP4 includes 54 villas, a clubhouse and other associated infrastructure.
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DP7 assets: 120 five-bedroom villas, 230 seven-bedroom villas, 284 branded residential units and other infrastructural works.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
The contract was awarded to the local firm Orascom Construction.
The scope of the contract covers the construction of residential units, commercial facilities and a 70-key hotel.
In September, MEED reported that Modon Holding had tendered contracts for the infrastructure works for the first phase of the Ras El-Hekma project.
As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
Ras El-Hekma is on a spur of land on Egypt’s northern Mediterranean coastline, about 240 kilometres west of Alexandria.
Last year, Abu Dhabi-based holding company ADQ appointed Modon Holding as the master developer for the Ras El-Hekma project.
According to an official statement, Modon will act as the master developer for the entire development, which will cover more than 170 million sq m.
Modon Holding will develop the first phase of the project, which will cover 50 million sq m.
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In September 2024, Modon signed several memorandums of understanding (MoUs) with local and international firms to join the development. It signed a framework agreement with Orascom Construction to serve as the primary contractor for the project’s first phase.
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Commercial International Bank Egypt (CIB) has provided €58m in credit facilities to local firm Elsewedy Electric for the construction of a combined-cycle gas turbine (CCGT) power plant in Hungary.
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It was awarded by MVM Matra Energia, a subsidiary of Hungary’s state-owned power holding company Magya Villamos Muvek (MVM).
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Abu Dhabi’s AD Ports Group has signed an agreement with Jordan’s Aqaba Development Corporation (ADC) to manage and operate the Aqaba multipurpose port.
AD Ports will manage and operate the port under a 30-year concession agreement.
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AD Ports will hold a 70% stake in the joint venture, with the remaining 30% held by ADC.
AD Ports Group will also invest AED141m ($38.4m) in the joint venture.
The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
The agreement was signed by Hussein Safadi, CEO of ADC, and Ahmed Al-Mutawa, regional CEO of AD Ports Group.
Aqaba port handles about 80% of Jordan’s exports and 65% of its imports.
It serves as a key transit point for Jordan’s neighbouring countries, including Saudi Arabia and Iraq. The port has an annual handling capacity of 11 million tonnes, supported by nine berths, a quay length of 2 kilometres and a draft of 13.5 metres.
In 2025, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units of Ro-Ro imports.
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The Al-Madouneh customs centre covers about 1.3 million square metres (sq m) and was inaugurated in June last year.
The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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Chinese firm wins Ceer automotive supplier park deal
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Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
The supplier park is located next to Ceer’s electric vehicle (EV) production facility in KAEC.
The automotive supplier park will include production and ancillary facilities for various suppliers and provide the material supply infrastructure for Ceer’s EV plant.
The facilities include:
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Earlier this week, MEED exclusively reported that Ceer had awarded a contract to build the automotive supplier park to Jeddah-based construction firm Modern Building Leaders (MBL).
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Ceer retendered the project in September last year.
The latest contract award is another significant contract win for MCC in Saudi Arabia. In January, MEED reported that MCC had won a contract to undertake the steel structure works on Mohammed Bin Salman Stadium at the Qiddiya City project on the outskirts of Riyadh.
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