The region’s most ambitious causeway projects
8 February 2023

The submission of feedback questionnaires and meetings with contractors for the planned second causeway connecting Saudi Arabia and Bahrain is the latest sign of potential progress on one of the region’s largest infrastructure projects.
Causeways have a chequered history in the region. The first causeway connecting Saudi Arabia and Bahrain was completed during the 1980s, and since then, it has had a transformative impact on the Bahraini economy.
The project’s success has inspired other causeways. But while these schemes remain ambitions for many in the region, construction progress has been limited. The hope is that a successful second causeway linking Saudi Arabia and Bahrain will foster the delivery of other longstanding causeway plans.
These are the most ambitious causeway schemes that the region has planned:
| Second Saudi Arabia-Bahrain causeway |
The second causeway between Saudi Arabia and Bahrain is the most likely to proceed. Planned by the King Fahd Causeway Authority, the $3.5bn project, which has been called the King Hamad Causeway project, is moving towards construction.
In 2021, senior government officials in Bahrain told MEED that the project was progressing towards tendering as financial studies had been completed.
The project was included in Bahrain’s $30bn Strategic Projects Plan that was announced later in 2021. As well as the causeway, the plan includes building new urban areas on five reclaimed islands to increase the country’s total land area by 60 per cent. It also comprises plans for a new airport.
The second causeway involves building a 25-kilometre road and rail crossing linking Saudi Arabia and Bahrain. It will follow the same alignment as the existing King Fahd Causeway.
It has been earmarked for delivery on a public-private partnership (PPP) basis. The King Fahd Causeway Authority appointed a consortium to provide transaction advisory services in late 2019.
The $8.9m consultancy agreement was signed with a consortium of Netherlands-headquartered KPMG, US-based Aecom and UK-based CMS. The team was tasked with working on developing the financing model, the required engineering specifications and design, as well as helping with the assessment and selection of the project’s developers.
Canada-based SNC Lavalin and UK-based consultancy firm PwC conducted the project due diligence study in 2017.
The existing King Fahd Causeway is operating at capacity. About 11.5 million cars cross the causeway every year, and the growth has been 6 per cent per annum over the past 10 years.

| Qatar-Bahrain causeway |
There have also been suggestions that the proposed causeway bridging Bahrain and Qatar may be revived. In March 2022, Manama called for work to restart on the causeway joining the two countries.
“We in the Kingdom of Bahrain renew the call for the start of bilateral talks between the two sides in accordance with the mechanisms agreed upon in the Al-Ula statement,” said Bahrain’s undersecretary for land transportation and post in an official statement published by the official Bahrain News Agency.
The estimated $4bn Qatar-Bahrain causeway project was put on hold and the contracting consortium demobilised in 2010.
A joint venture of state-owned developer Qatari Diar Real Estate Investment Company and French contractor Vinci Construction Grand Projets led the consortium. The other consortium members were Germany’s Hochtief, Athens-based Consolidated Contractors Company (CCC), Dredging International from Belgium and the local Middle East Dredging Company (Medco).
The planned 40km bridge includes a four-lane motor crossing scheduled for completion in 2013 and two railway lines forming part of the GCC rail network.
The project also comprises 22km of bridges and viaducts, 18km of embankments and two 400-metre cable-stayed bridges. The causeway connects Ras Ashairij on the west coast of Qatar to Askar on the east coast of Bahrain.
The project was also known as the Friendship Bridge and was to be jointly funded by the Qatari and Bahraini governments, which intended to recover some of the construction costs by implementing a toll system on the bridge.
The crossing would cut the journey time between the two countries, which currently involves a detour through Saudi Arabia, from five hours to just 30 minutes.
| Saudi Arabia-Egypt causeway |
The prospects for the causeway connecting the $500bn Neom project in Saudi Arabia and Egypt’s Sinai Peninsula across the Straits of Tiran improved last year after US President Joe Biden’s visit to Saudi Arabia.
After the visit, a joint communique issued by Washington and Riyadh referred to the development of Tiran Island.
“President Biden welcomed the arrangements by Saudi Arabia to remove the Multinational Force & Observers (MFO) from the Island of Tiran, including the removal of US troops there as part of the MFO mission, while preserving and continuing all existing commitments and procedures in the area,” it said.
“This area of the Red Sea will now be developed for tourism and economic purposes, contributing to a more secure, peaceful and prosperous region.”
The US-Egyptian-Israeli-backed MFO was founded in 1981 to oversee the terms of the 1978 Camp David Accords, which included the full Israeli withdrawal from the Sinai Peninsula.
In 2016, Egypt and Saudi Arabia agreed during a state visit to Cairo by King Salman bin Abdulaziz al-Saud to develop a causeway linking the two countries across the Red Sea.
The agreement was made as part of a broader deal that would also involve Egypt ceding the sovereignty of the two Tiran islands to Saudi Arabia.
While details of the proposed crossing were never revealed at the time, it was understood to be a revival of a $4bn project announced in 2011. That scheme involved building a 32km crossing stretching over the Straits of Tiran from Ras Humaid in Tabuk, in the northern region of Saudi Arabia, to Ras Nasrani, close to the Egyptian resort of Sharm el-Sheikh.
Plans to link Saudi Arabia and Egypt are far from new. The development of a causeway was first mooted as far back as 1988. However, the idea has received additional focus in recent years following the launch of the Neom development in northwestern Saudi Arabia, which includes Ras Humaid. Part of the Neom scheme, the 170km-long linear city known as The Line, will extend from the promontory inland to the city of Tabuk.
UK-based Arup was reported to have been selected in 2019 for the next stage of the feasibility study for the causeway.
Saudi Arabia was understood to be considering using a public-private partnership (PPP) model for the scheme, similar to other transport projects planned in and around the kingdom.
| Yemen-Djibouti causeway |
A 28.5km causeway was planned to connect Yemen and Djibouti before the scheme was put on hold in 2010 until the governments of both countries signed the framework agreement for the project. The civil war in Yemen means it is unlikely the scheme will make any progress soon.
The estimated $20bn first phase involved building the link between the Yemeni mainland to the island of Perim in the Red Sea. Phase two would have then connected Perim with Djibouti.
The wider project also involves building two cities at each end of the link. The total investment required to construct the cities and the bridge is $200bn.
Dubai-based Al-Noor Holding Investment Company was developing the project.
In 2009, the company said it expected to award a build-operate-transfer contract for the first phase of the bridge and that three companies had expressed interest in funding and building the road and rail link. Denmark’s Cowi prepared the preliminary design for the crossing.
| UAE-Qatar causeway |
In 2005, Abu Dhabi and Doha were reported to have been setting up a joint company to oversee the implementation of the proposed UAE/Qatar causeway.
The 40km causeway was expected to start near Sila in Abu Dhabi emirate and extend to the south of Doha.
The estimated $13bn crossing would have significantly cut journey times. At present, traffic between Qatar and the UAE has to pass through 125km of Saudi Arabian territory.
The scheme stalled shortly afterwards. Problems included difficulties with the route, which ran through Saudi Arabian territorial waters.
Exclusive from Meed
-
Oman awards exploration blocks to state upstream firm28 September 2026
-
Saudi Arabia qualifies firms for gas-fired IPPs28 September 2026
-
Dewa completes $2.7bn refinancing of Noor Energy 128 September 2026
-
BP to drill new well in Egypt as part of $700m campaign28 September 2026
-
Oil company talks shape Libya licensing round28 September 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
-
Oman awards exploration blocks to state upstream firm28 September 2026
Oman’s Ministry of Energy & Minerals (MEMR) has awarded state-owned upstream firm OQ Exploration & Production (OQEP) exploration rights for three hydrocarbon blocks in the sultanate.
OQEP, which is 75% owned by Omani state energy group OQ, has secured rights for Blocks 36, 43A and 66.
Under the agreements, OQEP will conduct geological and geophysical surveys, analysis and modelling, and drill exploratory wells at the three blocks, with the aim of developing recoverable reserves.
Neither MEMR nor OQEP disclosed the blocks’ locations, areas or prospective reserves in their statement.
OQEP’s portfolio comprises 14 upstream oil and gas exploration and production assets in Oman, covering onshore and offshore operations and assets held under service contracts.
Formerly known as Oman Oil Company Exploration & Production, OQEP’s flagship assets include Block 60, which contains the Abu Tubul and Bisat oil fields, and Block 48. The company also holds strategic interests in gas-producing Blocks 9, 10 and 61.
Offshore expansion
OQEP has been expanding its offshore exploration portfolio. In February, the company acquired a 30% participating interest in offshore Block 18, following MEMR’s award of exploration rights to a joint venture between OQEP subsidiary OQ Exploration & Production Al-Batinah Offshore and PC Oman Ventures, a wholly owned subsidiary of Malaysia’s Petronas.
Located off Oman’s northeastern coast, Block 18 covers more than 21,000 square kilometres in the Sea of Oman, with water depths ranging from 50 metres to 3,000 metres. No confirmed discoveries have previously been reported in the block.
ALSO READ: Concession deals boost momentum in Oman mining
Under the concession agreement, Petronas holds a 70% participating interest and operatorship, while OQEP holds the remaining 30%.
OQEP has also expanded its producing portfolio through the acquisition of a 35% interest in onshore Block 27 from Japan's Mitsui E&P Middle East in April. The transaction was valued at RO28.8m ($75m).
Block 27 is operated by US-based Occidental Petroleum, which holds a 65% participating interest under an exploration and production-sharing agreement valid until 2035.
OQEP expects its interest in the block to contribute approximately 3,500 barrels of oil equivalent a day (boe/d) in additional net production this year.
In June, MEMR signed an with OQEP and state-owned Turkiye Petroller AO (TPAO), granting the companies exclusive exploration, appraisal, development and production rights for offshore Block 80.
The block covers approximately 5,737 sq km in the Gulf of Oman, near the Strait of Hormuz and off Musandam governorate. It includes the producing Bukha and West Bukha oil and gas fields.
The agreement stipulates a minimum exploration investment commitment of $90m over an initial eight-year exploration period. The work programme is divided into two phases to evaluate the block’s hydrocarbon potential.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20063097/main2825.jpeg -
Saudi Arabia qualifies firms for gas-fired IPPs28 September 2026
Register for MEED’s 14-day trial access
Principal buyer Saudi Power Procurement Company (SPPC) has qualified 13 companies to bid for the third round of Saudi Arabia’s combined-cycle gas turbine (CCGT) independent power producer (IPP) programme.
The projects will comprise new CCGT plants developed on a build-own-operate basis. Each project will be implemented through a special-purpose project company wholly owned by the successful bidder.
The qualified firms are:
- Abu Dhabi National Energy Company [Taqa] (UAE)
- Acwa (Saudi Arabia)
- Al-Bawani Capital (Saudi Arabia)
- Al-Jomaih Energy & Water (Saudi Arabia)
- EDF (France)
- Etihad Development Company (UAE)
- Kepco (South Korea)
- Marafiq (Saudi Arabia)
- Mitsubishi Power (Japan)
- Nesma Renewable Energy (Saudi Arabia)
- PowerChina (China)
- Saudi Energy (Saudi Arabia)
- Sumitomo Corporation (Japan)
Developers submitted statements of qualification for the round on 23 August, as exclusively reported by MEED.
Some have already begun “the process of forming consortiums to bid” for the project, with up to three or four groups likely to make offers.
Also in September, MEED exclusively reported that US-based GE Vernova was close to finalising a turbine reservation agreement with SPPC for the plants.
The new plants will use advanced H-class or J-class gas turbine technology. Each IPP is expected to comprise two or three gas turbine generators, corresponding heat recovery steam generators with duct firing, and one or two steam turbine generators.
The request for qualifications released by SPPC in July did not specify the number, locations or capacities of the projects, which mark the next stage of its CCGT IPP programme.
The first round comprises Taiba 1, Taiba 2, Qassim 1 and Qassim 2, with a combined capacity of 7,200MW.
The second round comprises Rumah 1, Rumah 2, Nairyah 1 and Nairyah 2, also with a combined capacity of 7,200MW.
Saudi Arabia’s Acwa recently said it had begun initial commercial operations at the Taiba 1 and Qassim 1 CCGT power plants.
US/India-based Synergy Consulting is the financial adviser for the procurement; Germany’s Fichtner is the technical adviser; and UK-headquartered Eversheds Sutherland is the legal adviser.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20055392/main.jpg -
Dewa completes $2.7bn refinancing of Noor Energy 128 September 2026
Dubai Electricity & Water Authority (Dewa) has completed a $2.7bn refinancing of the 950MW Noor Energy 1 project, the fourth phase of Dubai’s Mohammed Bin Rashid Al-Maktoum Solar Park.
Noor Energy 1 reached commercial operation in 2024. The project company was established to design, build and operate the plant. It is owned by Dewa (51%), Acwa (25%) and China’s Silk Road Fund (24%).
The project combines 700MW of concentrated solar power (CSP) with 250MW of photovoltaic (PV) capacity. The CSP component comprises a 600MW parabolic trough facility and a 100MW solar tower.
It has up to 15 hours of thermal energy storage, allowing it to supply dispatchable electricity beyond daylight hours. Dewa describes Noor Energy 1 as the world’s largest single-site CSP project.
According to Dewa, the transaction strengthens the project’s financial structure and is expected to generate savings over the operational life of the plant. Saeed Mohammed Al-Tayer, managing director and CEO of Dewa, added that the refinancing demonstrates confidence from international, regional and local financial institutions.
Abu Dhabi National Future Company (Masdar) is expected to commission the 1,800MW sixth phase of the MBR Solar Park by the end of this year.
The $1.5bn facility is being implemented by Shuaa Energy 4, a special purpose vehicle jointly owned by Masdar (40%) and Dewa (60%).
In August, MEED exclusively reported that Masdar is also likely to be awarded the contract to develop the seventh phase of the MBR Solar Park after submitting the lowest bid for the project.
Phase seven will add 2,000MW from PV solar panels and include a 1,400MW battery energy storage system with a six-hour capacity, providing a total storage capacity of 8,400 megawatt-hours.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20055739/main.jpg -
BP to drill new well in Egypt as part of $700m campaign28 September 2026
London-headquartered BP has moved the Valaris DS-12 drilling rig to a new position ahead of drilling the planned Ghorab-1 exploration well, according to a statement from Egypt’s Ministry of Petroleum & Mineral Resources.
The Ghorab-1 exploration well will be drilled in the offshore West Nile Delta (WND) concession and is part of a $700m drilling campaign that started in April this year.
The rig was moved to the new position after drilling the Fayoum-4 well.
The Ministry of Petroleum said the well had commenced production and was connected to the national natural gas grid, delivering approximately 80 million cubic feet a day of gas.
Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi held a meeting with officials from BP last week to discuss progress on the drilling campaign.
They discussed BP’s strategic direction and priorities, as well as its future business plans, according to the statement from the Ministry of Petroleum.
Increased interest
Amid the US and Israel’s ongoing conflict with Iran and the ongoing war between Russia and Ukraine, oil assets in North Africa have become increasingly appealing to international oil companies.
Disruptions to oil and gas exports through the Strait of Hormuz have severely disrupted a range of countries, including Qatar, the UAE, Saudi Arabia, Iraq and Kuwait.
London-headquartered Shell has also been pushing ahead with strategic projects in Egypt over recent months.
In August, BG Delta, a Shell subsidiary, reached the final investment decision for phase 12a of the West Delta Deep Marine (WDDM) development project.
The project will be implemented in partnership with Malaysia’s Petronas and state-owned Egyptian General Petroleum Corporation (EGPC).
Shell, Petronas and EGPC formed a joint venture called Burullus Gas Company to operate the WDDM concession.
Phase 12a includes drilling and completing three deepwater gas wells, with production expected to begin in 2028.
The wells will be tied into existing subsea infrastructure, helping accelerate development, improve capital efficiency and limit the need for additional facilities.
In April, Egypt’s Petroleum Marine Services (PMS) was awarded a contract for offshore works for phase 12 of the WDDM field development project.
The contract awarded to PMS uses the engineering, procurement, installation and construction contract model.
Under the scope of the contract, PMS will install the required electrical, hydraulic and mechanical connections in deep waters to tie three new gas wells into production as part of phase 12.
The scope also includes the installation of three final triple tie-in spool bases to complete the connection between the wells.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20050585/main4559.jpg -
Oil company talks shape Libya licensing round28 September 2026

Conversations with London-headquartered international oil companies (IOCs) are playing a key role in shaping plans for Libya’s next licensing round.
Representatives from Shell and BP travelled to Libya earlier this month as part of a Libyan British Business Council (LBBC) delegation.
During the trip, the oil companies’ representatives met with officials from Libya’s National Oil Corporation (NOC).
Peter Millett, chair of the LBBC and a former British ambassador to Libya, told MEED: “NOC is considering its next licensing round and an important part of that process is talking to IOCs like BP and Shell about what kind of terms would make blocks appealing to them.
“They are asking these oil companies what they can do differently in order to get more investment.”
Libya’s NOC chairman is Masoud Suleman, who was formally appointed in October last year after serving as acting chairman since January 2025.
Shortly after he became acting chairman, the NOC announced the results of its most recent licensing round, which was launched in March 2025 and was the country’s first in 17 years.
A total of five blocks out of 22 available were ultimately awarded in the 2025 licensing round.
One of the blocks, known as Block S4, was awarded to US-based Chevron, and the production-sharing agreement (PSA) for the block was signed in August.
Investment drive
Millett said Libya is seeking large investments from oil companies in order to boost national production.
“The way that Masoud Suleman is running NOC is impressive and technocratic,” he said. “One of his focuses is making his organisation into a partner that IOCs want to work with.”
“NOC has the ambition to produce more oil and export more oil, but they need investment in order to do this.
“They received some money from the central bank for a budget, but it is just a fraction of what they need.
“There’s a huge requirement to invest in infrastructure, such as processing facilities and pipelines, so they’re looking to outside companies to bring them investment and technology.”
Amid the US and Israel’s ongoing conflict with Iran and the ongoing war between Russia and Ukraine, oil assets in North Africa have become increasingly appealing to IOCs.
Disruptions to oil and gas exports through the Strait of Hormuz have severely affected a range of countries, including Qatar, the UAE, Saudi Arabia, Iraq and Kuwait.
Millett believes Libya’s proximity to consumer markets could help it secure investment to develop its oil and gas sector.
“Oil companies appear to be becoming increasingly willing to provide this investment in the current climate, because it is relatively easy to transport Libyan crude to customers,” he said.
“The only strait that you might need to go through is the Strait of Gibraltar, and this is easy compared to the problems that countries like Iraq and Kuwait are having shipping their crude through the Strait of Hormuz at the moment.”
Security challenges
While Libya’s location offers significant benefits in terms of ease of exports, operating in the country comes with security challenges.
Over recent weeks, both the Mellitah oil and gas complex and the Zawiya refinery in the west of the country have been disrupted by the actions of armed groups.
On top of this, a key pipeline was shut down by militants, temporarily cutting national production by 130,000 barrels a day.
While Libya has significant potential to expand its oil and gas sector, IOCs will likely watch for signs of deteriorating security before committing to large investment projects.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20050217/main.jpg
