meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10571464/main.jpg
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Six groups qualify for Saudi Arabia’s Qassim airport PPP

    7 September 2026

    Saudi Arabia’s Civil Aviation Holding Company (Matarat), through the National Centre for Privatisation & PPP (NCP), has qualified five groups and one standalone company to bid for a contract to develop Prince Naif Bin Abdulaziz International airport in Qassim, Saudi Arabia.

    These include:

    1. YDA Insaat / Safari Group / Lamar Holding / Egis (Turkiye/local/Bahrain/France)
    2. Ports Projects Management & Development Company / Algihaz Holding (local/local)
    3. Mada International Holding / TAV Airports Holding (local/Turkiye)
    4. Namaya International Investment Company / Oman Airports Management Company / AlBawani Capital / Tanama (local/Oman/local/UAE)
    5. Vision Invest / Asyad Holding / DAA International (local/local/Ireland)
    6. GMR Airports (India)

    The prequalification process follows 89 firms expressing interest in the contract, as MEED reported in March.

    The project scope includes the redevelopment of the passenger terminal as well as other associated facilities such as airside infrastructure, including runway, taxiways and aprons.

    The project will be developed on a design-finance-construction-operations-maintenance-transfer basis.

    The clients issued an expression of interest notice for the project on 9 February, and companies were given until 23 February to submit responses.

    Tendering is also ongoing for the new Taif International airport project in Mecca Province. 

    The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport and will have a capacity of 2.5 million passengers by 2030.

    In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.

    The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.

    The new airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of the city of Taif and its surrounding areas, in line with the kingdom’s National Aviation Strategy.

    It is also expected to meet the needs of Umrah pilgrims, as an alternative within the region’s multi-airport system, which includes King Abdulaziz airport in Jeddah, Prince Mohammed Bin Abdulaziz airport in Medina and Prince Abdulmohsen Bin Abdulaziz airport in Yanbu.

    Previous tenders

    The Taif, Hail and Qassim airport schemes were previously tendered and awarded as public-private partnership (PPP) projects using the build-transfer-operate (BTO) model.

    Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.

    A team of Turkiye’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.

    A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.

    However, these projects stalled following the restructuring of the kingdom’s aviation sector.

    Saudi Arabia has already privatised airports including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433451/main.jpg
    Yasir Iqbal
  • Dubai sets October deadline for metro Gold Line

    7 September 2026

     

    Dubai’s Roads & Transport Authority (RTA) has set a deadline of 9 October for contractors to submit their prequalification statements for a contract to build the new Gold Line as part of the Dubai Metro network’s expansion.

    The previous deadline was 7 September.

    The RTA issued the request for qualification notice for the project in June, with an initial submission deadline of 17 August, as MEED exclusively reported.

    The prequalification notice followed the RTA’s invitation to contractors to express interest in building the new Gold Line in May.

    Dubai officially announced the launch of the new Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project will cost about AED34bn ($9.2bn).

    The Gold Line will increase Dubai Metro network’s total length by 35%.

    The project is scheduled for completion in September 2032.

    The Gold Line will be a fully underground network covering more than 42 kilometres, with 18 stations.

    It will pass through 15 areas in Dubai, benefiting 1.5 million residents.

    The project is expected to provide connectivity to over 55 under-construction real estate development projects.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.

    It will connect to Dubai Metro’s existing Red and Green lines and integrate with the Etihad Rail passenger line.

    The contractor will be responsible for the design and build of all civil works, electromechanical equipment, rolling stock and rail systems.

    The selected contractor will also be required to assist in the systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design, stage two covers preliminary design, stage three covers the preparation of tender documents, stage four encompasses construction supervision, and stage five covers the defects and liability period.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433246/main.png
    Yasir Iqbal
  • Oman power firms move closer to merger

    7 September 2026

    Oman’s Financial Services Authority has given in-principle approval for the proposed merger of Al-Suwadi Power Company and Al-Batinah Power Company.

    In a disclosure to the Muscat Stock Exchange on 6 September, Al-Suwadi said the proposed merger remains subject to legal and regulatory requirements as well as approvals from relevant lenders and shareholders of both companies.

    Al-Suwadi and Al-Batinah are independent power producers (IPPs) that operate two major gas-fired power plants in Oman. Al-Suwadi operates the 750MW Barka 3 IPP, while Al-Batinah operates the 750MW Sohar 2 IPP.

    The two companies began assessing a potential merger in May. Al-Suwadi said the companies have similar assets, business operations and founders.

    The companies recently secured new 15-year power purchase agreements (PPAs) with Nama Power & Water Procurement Company for Barka 3 and Sohar 2.

    The new PPAs will take effect on 1 April 2028 and run until 31 March 2043. They will allow the two plants to continue supplying electricity under long-term contracts after their existing PPAs expire.

    Al-Suwadi said in May that potential cost savings from a merger had been taken into account when the new PPAs were negotiated.

    The company has also started assessing potential refinancing options for its existing financing arrangements, as well as funding requirements for capital expenditure during the new PPA period.

    The refinancing assessment remains at an early stage. Any refinancing would be subject to approvals from the relevant regulatory authorities, existing lenders and Al-Suwadi’s board of directors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19433240/main.jpg
    Mark Dowdall
  • Red Sea utilities project reaches commercial operation

    7 September 2026

    The utilities system serving Saudi Arabia’s Red Sea tourism destination has reached commercial operation, marking the start of a 25-year concession for one of the world’s largest integrated off-grid utilities projects.

    The Project Commercial Operation Date was signed by Marafiq Red Sea for Energy Company, the Acwa-led project company, and The Red Sea Utilities Company, a subsidiary of Red Sea Global.

    The milestone brings into commercial service an integrated system covering power, potable water, wastewater treatment, district cooling and waste management. The system operates without a connection to Saudi Arabia’s national grid and is powered by renewable energy.

    The project, known as the Marafiq Red Sea Project or Red Sea Utilities Multi-Utilities Project, combines 340MWac of solar photovoltaic capacity with a 1,227MWh battery energy storage system. Acwa describes the battery facility as the world’s largest off-grid battery installation.

    The system currently supplies Red Sea Global’s operational hotels, Red Sea International airport, logistics hub, electric fleet, staff village and community facilities.

    The solar and battery system has been sized to meet the destination’s initial energy demand and can generate up to 760,000MWh of clean electricity a year. At full capacity, it is expected to avoid about 600,000 tonnes of carbon dioxide emissions annually.

    The utilities scope also includes three seawater reverse osmosis plants, a sewage treatment plant (STP), a waste management centre and 32,500 refrigeration tonnes of district cooling capacity.

    The STP has a treatment capacity of 16,000 cubic metres a day. Treated wastewater will be used for irrigation and to support wetland habitats at the destination.

    The integrated system has been designed to expand as further phases of The Red Sea destination come online.

    As MEED previously reported, financial close was reached in February 2022, with about $1.33bn of senior debt facilities and total investment of about $1.84bn.

    The consortium comprises Acwa, China’s SPIC Huanghe Hydropower and Saudi Tabreed. Marafiq holds the 25-year utilities concession.

    Sepco 3, the Shandong Tiejun consortium, was the engineering, procurement and construction contractor. Acwa Operations is responsible for operating and maintaining the utilities system under a long-term agreement aligned with the concession period.

    The project is the first gigaproject in Saudi Arabia to bring its complete utility systems into commercial operation powered solely by renewable energy, Acwa said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19432588/main.jpg
    Mark Dowdall
  • Iraq boosts oil exports after talks with Iran

    7 September 2026

    Iraq has boosted its oil export capacity to more than 3 million barrels a day (b/d) after holding talks with Iran, according to Oil Minister Basim Mohammed Khudair.

    In a video statement released on 5 September, he said the country has been able to ship more than 3 million b/d since the start of this month.

    He also said: “The government plans to raise export capacity to 5 million b/d after completing the strategic pipelines extending towards Fishakhpur and Banias, as well as the export outlets in the Strait of Hormuz.”

    Iraq’s oil exports rose to around 2.34 million b/d in August, according ⁠to ⁠officials.

    The increase came after Iran granted special permission for a number of Iraqi oil tankers to pass through the Strait of Hormuz in August, following repeated requests from Baghdad.

    On 22 August, Iraqi President Nizar Amidi said Iran had facilitated the passage of “some ships carrying Iraqi oil in the strait” in recent days, and Baghdad had discussed exporting Iraqi oil through Hormuz with Iranian officials.

    The details of Iraq’s agreement have not been released by officials, but Amidi said that his government “will not accept Iraqi territory being used to launch attacks against any other country”.

    The Iraqi president said attacks launched from inside Iraq against countries in the region “have no justification”.

    Prior to the deal being announced, Iraqi exports had been dramatically reduced amid fallout from the regional war that started when the US and Israel attacked Iran on 28 February 2026.

    The regional war has led to significant disruption to shipping through the Strait of Hormuz, which is a key export route for Iraqi oil.

    Iraq’s crude exports fell from more than 3.3 million b/d before the war to a low of about 330,000 b/d in April, while exports from its southern terminals were temporarily halted altogether in March.

    Tensions still remain high in the region, and some shipping is still being disrupted by the ongoing conflict.

    On 2 September, Saudi Arabia condemned an Iranian attack on an oil tanker owned by its national shipping company that resulted in the deaths of two citizens of the Philippines.

    In a statement, Saudi Arabia’s Foreign Ministry said Iran targeted the Sidr tanker, owned by national carrier Bahri, while it was transiting the Strait of Hormuz two days earlier.

    It said: “The kingdom stressed the necessity of halting escalations and respecting international maritime safety and the security of global energy supplies.”

    Kuwait and Qatar’s foreign ministries said the attack violated international law and freedom of maritime navigation.

    Qatar called the attack a “flagrant violation of the rules of international law and freedom of maritime navigation”. Doha further rejected the use of the Strait of Hormuz as a “bargaining chip”.

    Iran has repeatedly attacked and threatened tankers attempting to sail through the strategic waterway without authorisation, impeding energy exports from neighbouring oil-rich Gulf countries.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19424826/main.jpg
    Wil Crisp