meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia and Qatar sign high-speed rail link agreement

9 December 2025

Saudi Arabia and Qatar have signed an agreement to build a proposed high-speed rail line connecting Riyadh and Doha.

The agreement was signed by Saudi Arabia's Transport & Logistics Services Minister, Saleh Al-Jasser, and Qatar's Transport Minister, Sheikh Mohammed Bin Abdulla Bin Mohammed Al-Thani.

The high-speed railway line will cover 785 kilometres (km) and will pass through Hofuf and Dammam, while also linking King Salman International airport and Hamad International airport.

The train's speed will exceed 300 kilometres an hour, reducing travel time between the two capitals to about two hours.

The project is slated for completion in six years. The project is expected to serve over 10 million passengers annually and create more than 30,000 direct and indirect jobs.

Riyadh and Doha relaunched a proposed rail link connecting the two countries in 2022, after agreeing to set a date to begin studying the connection. 

In July of that year, France’s Systra was selected to conduct a feasibility study on the proposed scheme, as MEED reported.

A rail link connecting Saudi Arabia and Qatar was planned before the diplomatic dispute that froze relations between Riyadh and Doha from 2017 until the Al-Ula Declaration was signed in January 2021.

In 2016, Qatar Railways Company (Qatar Rail) was planning to tender the design-and-build contract for the construction of regional railways in Qatar, including the link connecting to the Saudi border.

READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

> BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/15217463/main.gif
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Riyadh prepares Qiddiya National Athletics Stadium tender

    9 December 2025

     

    Saudi gigaproject developer Qiddiya Investment Company (QIC) is expected to float a tender soon for the construction of the estimated SR7bn ($1.8bn) National Athletics Stadium at its Qiddiya entertainment city development.

    MEED understands that the prequalification process has reached an advanced stage and the tender for the main contract is likely to be issued within a few weeks.

    The multipurpose stadium will cover an area of approximately 182,000 square metres and its design is inspired by the London Olympic Stadium.

    In September, MEED exclusively reported that QIC had begun the procurement process for the kingdom’s next major sporting destination, having received expressions of interest from contractors for the project.

    UK-based HOK is the project’s lead design consultant. It is supported by Canadian engineering firm WSP and Germany’s Schlaich Bergermann Partner.

    UK-headquartered WT Partnership is serving as the project’s cost consultant.

    The stadium will be located within the Qiddiya Sports Park cluster and is expected to be completed by 2030.

    In December 2020, Saudi Arabia was selected to host the 2034 Asian Games. The 22nd edition of the event will be held in Riyadh from 29 November to 14 December 2034.

    Saudi Arabia is also set to host the Asian Winter Games in 2029. In October 2022, the Trojena development at Neom, in the northwest of the country, was selected to host the ninth edition of the event.

    The National Athletics Stadium is one of several major projects within the wider Qiddiya development. Others include an e-games arena, Prince Mohammed Bin Salman Stadium, a performing arts centre, a motorsports track, Dragon Ball and Six Flags theme parks and Aquarabia waterpark.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    Domestic leisure tourism trips increased to 33.76 million in 2023, up from 16.74 million in 2018. International tourist arrivals for recreational purposes increased by 600% from 2018 to 2023.

    Image: Buro Happold

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15217660/main.jpg
    Yasir Iqbal
  • Oman green hydrogen projects cancelled

    8 December 2025

    Hydrogen Oman (Hydrom), France’s Engie and South Korea’s Pohang Iron & Steel Company (Posco) have cancelled plans to move forward with the $6.7bn HyDuqm green hydrogen project.

    In a joint statement, the firms said they had reached a decision to end the scheme by mutual consent following an “in-depth assessment” of global renewable hydrogen offtake dynamics and investment frameworks.

    The HyDuqm scheme was one of the largest green hydrogen projects awarded under Oman’s first auction round in 2023.

    The proposed development included around 5GW of combined solar and wind capacity, supported by battery energy storage, to power an electrolysis plant producing hydrogen for conversion into green ammonia.

    The facility was expected to deliver up to 1.2 million tonnes of green ammonia a year by 2030, with Posco as the main offtaker to support the decarbonisation of its steel operations.

    The consortium, led by Posco (28%) and Engie (25%), had secured a 47-year concession with the state-owned Hydrom to develop a 320-square-kilometre site near the Port of Duqm.

    Samsung Engineering, Korea Southern Power and Korea East-West Power had a 12% stake, with Thailand’s PTTEP holding the remaining 11%.

    As recently as May, the partners were still targeting a final investment decision in 2027, subject to detailed economic and technical feasibility assessments.

    Separately, a second Hydrogen project in the same area, owned by the UK’s BP, has also been cancelled. BP withdrew its plans for the Duqm green hydrogen project, which had secured land rights for the 1.5GW facility.

    Hydrom managing director, Abdulaziz Al-Shidhani, told the 2025 Green Hydrogen Summit in Oman last week that only seven of the nine original projects that won land tenders were progressing.

    Wider slowdown

    The cancellations come amid a broader slowdown in green hydrogen development globally. Several major schemes have been postponed, scaled back or withdrawn as project economics have tightened.

    In Europe, more than one-fifth of planned hydrogen projects had been stalled or cancelled by the end of 2024, according to research and consultancy firm Westwood Global Energy, largely due to high costs, uncertain demand and slow progress securing long-term offtake.

    A similar trend has emerged in the GCC, where Saudi Arabia’s flagship Neom green hydrogen project has also faced offtake and market pressures despite reaching an $8.4bn financial close in 2023.

    The 4GW scheme, designed to produce about 1.2 million tonnes a year of green ammonia, has reportedly struggled to secure multiple international buyers, with only limited offtake confirmed to date.

    Hydrogen production costs

    Global green hydrogen production costs also remain significantly higher than conventional alternatives, typically in the range of $3-$8 a kilogram compared with roughly $0.5-$2/kg for hydrogen produced from fossil fuels, leaving large export-oriented projects exposed to pricing and demand uncertainty.

    The combination of elevated capital costs, slow offtake development and evolving policy frameworks has created headwinds for investment decisions across the sector.

    In the joint statement, however, Hydrom said it is committed to “developing a competitive hydrogen-centric economy” aligned with Oman’s Vision 2040.

    It added that projects awarded in the first two auction rounds are progressing on schedule towards the country’s target of producing more than one million tonnes a year of green hydrogen by 2030.

    The company also highlighted continued international interest in the sector, noting that the third auction round is under way with strong foreign participation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15214080/main.jpg
    Mark Dowdall
  • Regional rail industry emerges

    8 December 2025

    Commentary
    Colin Foreman
    Editor

    Read the December issue of MEED Business Review

    The GCC is experiencing a fundamental shift in its approach to rail infrastructure, as it moves from standalone projects to a self-sustaining regional industry. The transition is evident as local, national and regional projects advance across the region.

    The first wave of metro systems, in Dubai, Doha, and most recently, Riyadh, have reported stronger-than-expected ridership and demonstrated the viability of mass transit in the Gulf.

    Extensions to those networks are planned or under way, including Dubai’s Blue and Gold lines and Riyadh’s Line 2, alongside planned metros elsewhere such as Muscat and Bahrain.

    Projects are also planned and already being delivered at the national level. The UAE’s Etihad Rail and Saudi Arabian Railways are leading most of these efforts. The region’s first cross-border project is also progressing with the Hafeet Rail scheme linking the UAE and Oman.

    Other cross-border schemes are planned, including high speed links connecting Riyadh with Doha and Kuwait City, and rail links for Bahrain across causeways to Saudi Arabia and Qatar. The ultimate ambition is a GCC Rail network – a project that was reinvigorated by the Al-Ula accords in 2021.

    Sustained, simultaneous activity across the GCC is fostering the development of an indigenous regional rail industry. Rather than being executed as isolated endeavours, projects are creating ongoing demand for expertise, personnel and resources within the region.

    Project delivery capability will be complemented by the establishment of crucial ancillary services, including fabrication and servicing facilities.

    These operations will shift the GCC from a lucrative market for international contractors to a regional hub for the rail industry, capable of servicing and sustaining its growing network.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213797/main.gif
    Colin Foreman
  • Aldar and Mubadala plan $16bn financial district expansion

    8 December 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, and local developer Aldar have established a joint venture to deliver an expansion of the financial district on Al-Maryah Island with a gross development value of AED60bn-plus ($16bn-plus).

    The development will be built on the undeveloped land bank on the north side of Al-Maryah Island, covering about 500,000 square metres (sq m), and will support the next phase of growth for Abu Dhabi Global Market (ADGM).

    The masterplan encompasses 1.5 million sq m of new office, residential, retail and hospitality floor space.

    In an official statement, the firms said that the core objective of the project is to support the continued expansion of ADGM, Abu Dhabi’s international financial centre. ADGM now has more than 11,000 active licences registered in the free zone and is among the fastest-growing financial hubs globally.

    "Nearly 40,000 people are already based within the district, and demand for space remains strong," the statement added.

    The Al-Maryah Island expansion will add over 450,000 sq m of Grade A office space, doubling the island’s current office inventory.

    The expansion will add over 3,000 residences on the waterfront.

    The next phase will also add a further 40,000 sq m of retail and dining spaces.

    A central feature of the expansion is the Al-Maryah Waterfront enhancement project. This will include a bay fountain capable of water displays up to 75 metres high, forming the focal point of a reconfigured waterfront with additional dining, leisure and event spaces designed to complement existing assets on the island.

    Three new bridges are proposed to link the north side of Al-Maryah Island with Reem Island and the Abu Dhabi mainland, reducing travel time to Saadiyat Island to under 10 minutes.

    The enabling works on these projects are due to begin in 2026.

    The new joint venture is owned 60% by Aldar and 40% by Mubadala.

    "The two organisations are close to completing the legal work on a retail joint venture that will own and operate several of Abu Dhabi’s leading retail destinations, including The Galleria Al-Maryah Island, Yas Mall and the planned Saadiyat Grove Mall," the statement added.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213568/main.jpg
    Yasir Iqbal
  • Contractors get more time for Dorra gas development projects

    8 December 2025

     

    Saudi Arabia and Kuwait are pressing ahead with their ambitious plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field, located in the waters of their shared Neutral Zone.

    Three major, multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field have gathered pace this year.

    Saudi Arabia and Kuwait have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, both countries have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.

    Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

    KJO offshore and onshore facilities

    Al-Khafji Joint Operations (KJO), which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company (AGOC) and KPC subsidiary Kuwait Gulf Oil Company (KGOC), is moving forward with its Dorra gas field facilities project. KJO has divided the project’s scope of work into four engineering, procurement and construction (EPC) packages – three offshore and one onshore.

    Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has won package 1 of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract awarded by KJO to L&TEH is estimated to be valued between $140m and $150m, MEED reported in October.

    Contractors are preparing to submit bids by 22 December for the remaining three packages — offshore packages 2A and 2B, and onshore package 3, sources told MEED. KJO has extended the bid submission deadlines for these packages multiple times.

    The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables. Package 3 includes the EPC of onshore gas processing facilities.

    AGOC onshore Khafji gas plant

    Meanwhile, AGOC has extended the bid submission deadline for seven EPC packages as part of a project to construct the Khafji gas plant, which will process gas from the Dorra field onshore Saudi Arabia, until 22 December.

    MEED previously reported about AGOC issuing main tenders for the seven EPC packages earlier this year. Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for commercial bids.

    The seven EPC packages cover a wide range of works, including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems, and main operational and administrative buildings.

    France-based Technip Energies has carried out concept study and front-end engineering and design (feed) work on the entire Dorra gas field development programme.

    Progress has been hampered by a geopolitical dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.

    In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

    Since that show of strength and unity, projects targeting production and processing of gas from the Dorra field have gained momentum.

    KGOC onshore processing facilities

    KGOC has initiated early engagement with contractors for the main EPC tendering process for a planned Dorra onshore gas processing facility, which is to be located in Kuwait.

    KGOC is in the feed stage with the project, which is estimated to valued as high as $3.3bn, and is expected to issue the main EPC tender in January, MEED recently reported.

    The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.

    The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).

    A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility, and discussions regarding survey work are ongoing. The site may require shoring, backfilling and dewatering.

    The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company (KOC), for possible injection into its oil fields.

    Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.

    ALSO READ: Firms prepare proposals for Dorra gas programme project management consultancy
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213488/main.jpg
    Indrajit Sen