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
Related Articles
  • Azerbaijan seeks interest for wastewater PPP

    29 July 2026

    Azerbaijan has invited developers to submit expressions of interest (EoIs) for a public-private partnership (PPP) project to rehabilitate the Hovsan wastewater treatment plant (WWTP) and develop new wastewater recycling facilities.

    The scheme will be Azerbaijan’s first wastewater PPP. The Asian Development Bank (ADB) is advising the government on the project.

    The Hovsan WWTP is Azerbaijan’s largest wastewater treatment plant with a design capacity of 640,000 cubic metres a day (cm/d).

    The project comprises two components. The first covers the rehabilitation, financing, operation and maintenance of the existing Hovsan plant to improve discharge quality and sludge management.

    The second component covers the design, construction, financing, operation and maintenance of a new wastewater recycling facility with a capacity of 100,000 cm/d. The facility will supply recycled water for irrigation.

    The overall project is expected to serve up to 2.5 million people in Baku.

    ADB’s Office of Markets Development and PPP (OMDP) is acting as transaction adviser. Its role includes supporting project concept development and structuring, preparing and executing the competitive tender process, and assisting the government in achieving financial close.

    The deadline for interested firms to submit EoIs is 21 August.

    Azerbaijan has previously used the PPP model to attract private investment into large infrastructure projects, including in the water and renewable energy sectors.

    The country’s first PPP tender in the water sector was for a seawater reverse osmosis desalination plant at Sumgayit Industrial Park, northwest of Baku.

    As previously reported, a consortium of Saudi Arabia’s Acwa and Turkiye’s IC Ictas Insaat Sanayi ve Ticaret won the contract to develop the $400m plant, which will have a capacity of 300,000 cm/d.

    In September 2025, Acwa signed agreements with the government of Azerbaijan covering a public‑private partnership agreement, a land lease, a sovereign undertaking, and a product water sale and purchase agreement.

    The plant has a 27.5-year project term, with early commercial operations scheduled for the second half of 2028.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17805572/main.jpg
    Mark Dowdall
  • Kuwait construction holds up despite regional strife

    29 July 2026

     

    Kuwait’s construction and transport sectors are emerging from one of their strongest periods on record, with contract awards totalling $5.5bn last year, close to the record $5.6bn set in 2024.

    Against that backdrop, momentum has held up better than expected in 2026. Awards in the construction and infrastructure sectors reached about $1.2bn in the period to 27 July, only marginally down from the $1.6bn recorded over the same period last year. Given the disruption to investor confidence and tender timelines across the Gulf caused by regional conflict, the near-flat comparison points to a market that has held its footing rather than stalled.

    That steadiness reflects a broader push to keep major projects moving even as the region navigates a more uncertain operating environment. Underpinning the momentum is the $4bn engineering, procurement and construction (EPC) contract awarded to China Communications Construction Company (CCCC) in late December for the remaining phases of Mubarak Al-Kabeer Port on Boubyan Island, covering dredging, marine works and terminal infrastructure.

    Although the deal predates the current period of regional disruption, it helped establish momentum that has carried into 2026, with Kuwait continuing to advance large-scale schemes across ports, roads and utilities.

    This marks a notable shift for a market that, prior to its recent run, had a reputation for slow decision-making and a thin pipeline relative to regional peers. Contractors and consultants point to a steadier flow of tenders reaching the award stage this year, even with overall values marginally below last year’s pace – a gap narrow enough to suggest Kuwait’s pipeline has proven more insulated from regional volatility than many expected.

    Infrastructure pipeline

    Kuwait’s infrastructure pipeline is now approaching $16bn, spanning ports, roads and utilities projects at various stages of tendering and execution. The most recent addition came at Shuaiba Port, Kuwait’s oldest and principal industrial gateway, where the Kuwait Ports Authority (KPA) received bids in July for infrastructure and electrical modernisation works.

    The package sits alongside longer-term plans for Shuaiba. Since December, KPA has been in talks with Abu Dhabi’s AD Ports Group over a possible concession to develop a new container terminal, adding to a pipeline that already includes upgrade works at Shuwaikh and Doha ports under KPA’s wider tender programme.

    Elsewhere, Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City. Local firm United Buildings Company has emerged as the lowest bidder on both, with combined offers worth KD44m covering the construction, completion and maintenance of services, infrastructure and public buildings across different district centres.

    Tendering is also under way for the estimated KD222m ($718m) rainwater drainage networks serving Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra. The works comprise a major concrete sewer, three collection basins and an extensive stormwater drainage network, with collection tanks linked through an independent system that discharges to sea via the Nuwaiseeb outlet.

    Construction gains pace

    This infrastructure momentum has been mirrored in the construction sector, where Kuwait awarded an estimated $232m contract to China State Construction Engineering Corporation (CSCEC) in mid-July to construct the new headquarters of the Kuwait Direct Investment Promotion Authority (KDIPA). The contract covers a 275-metre, 55-storey office tower in Kuwait City’s Sharq district, targeted for completion in the second quarter of 2028.

    Beyond the KDIPA award, several schemes forming part of Kuwait’s estimated $36bn construction pipeline are expected to progress in the coming months.

    The largest is the first phase of the planned $22bn Sabriya City project, for which Beijing- and Shanghai-listed Metallurgical Corporation of China (MCC) is expected to sign one of the main contracts. MCC presented a fully funded proposal to Kuwaiti ministers for the city last year. The project is expected to include 52,000 housing units, alongside a power plant, hospital and marina.

    Consultants are meanwhile bidding for the design and supervision of the estimated $580m service hub buildings at Al-Mutlaa Health City, a project spanning more than 351,000 square metres.

    The Kuwait Authority for Partnership Projects (Kapp) has also awarded two landmark public-private partnership (PPP) deals this year.

    In January, it awarded an estimated $252m contract to develop the Al-Muthanna Complex real estate project to a local consortium comprising Real Estate House, National Investments Company, Arkan Kuwait Real Estate Company, Beyout Holding Company and Osoul Investment Company. The contract covers the rehabilitation, development, operation and management of the complex under a 15-year usufruct arrangement.

    In February, United Real Estate Company was awarded the third phase of a waterfront real estate project in Sharq, Kuwait City, under a similar 15-year arrangement covering rehabilitation, development, operation and management.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17805093/main.gif
    Yasir Iqbal
  • Events put Saudi Arabia on the world stage

    29 July 2026

    Commentary
    Colin Foreman
    Editor

    The Expo 2030 and the 2034 World Cup will not transform Saudi Arabia’s economy on their own, but the momentum they generate and the international profile they bring underline their importance.

    Over the past decade, Saudi Arabia has taken great strides in changing the international perception of the kingdom. Futuristic projects and investment in football and other sports, combined with social reforms such as opening cinemas and allowing women to drive, have helped foster a new image for the country.

    This year, those efforts have been dented as the rest of the world once again sees a region blighted by conflict. Saudi Arabia will need to correct the course of public perception once the conflict draws to a close, and Expo 2030 Riyadh and the 2034 Fifa World Cup are well timed to help the kingdom maintain its modernisation drive.

    Both are truly global events that will attract millions of visitors. More than 40 million visits are anticipated at the Expo, and the World Cup final in Qatar in 2022 was watched by some 1.5 billion people.

    Both are truly global events that will attract millions of visitors

    Locally, the impact has already begun. Flying into Riyadh’s King Khalid International airport from the south, one can clearly see earthworks and infrastructure progressing at the Expo site. To the east of the city, construction work on King Fahd Sports City Stadium is well advanced.

    Expo Riyadh 2030 Company expects the construction phase and legacy development to contribute around $64bn to Saudi GDP and generate some 171,000 jobs. Fifteen stadiums are planned across five cities.

    Construction activity is ramping up. Tendering is starting for the first buildings at the Expo site, including the KSA Pavilion. Meanwhile, work is beginning on more stadiums and other related infrastructure projects that will support the World Cup.

    In the build-up to Expo 2030 and World Cup 2034, construction will be the main event.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17794600/main.gif
    Colin Foreman
  • Read the August 2026 MEED Business Review

    29 July 2026

    Download / Subscribe / 14-day trial access

    Saudi Arabia’s biggest event and infrastructure programmes are moving into a new phase of delivery.

    Construction activity at the Expo 2030 Riyadh site is accelerating, with some of the largest packages set to be awarded before the end of this year. Infrastructure works are gathering pace and preparations are intensifying for an event that is expected to reshape the capital long after its six-month run comes to an end.

    At the same time, the lessons emerging from this summer’s expanded Fifa World Cup provide an early guide to the opportunities – and challenges – Saudi Arabia will face as it prepares to host football’s biggest tournament in 2034.

    August’s Market Focus turns to the Maghreb, where four economies are following increasingly divergent paths. While Morocco is benefiting from World Cup-driven investment and a booming tourism sector, Algeria is deploying record public spending, Tunisia is pressing ahead with strategic power investments despite fiscal constraints, and Libya is seeing sustained interest from oil and gas investors undeterred by ongoing political disputes. The report examines what is driving this divergence and where the region’s strongest opportunities now lie.

    This edition also includes MEED’s annual ranking of the Top 50 GCC banks, exploring how regional lenders have demonstrated remarkable resilience through recent geopolitical turbulence, supported by strong funding, capital buffers and government backing.

    In the latest issue, we speak to renewable energy consultancy SgurrEnergy about why developers are increasingly moving beyond standalone solar towards hybrid renewable energy projects that combine battery storage and other technologies to deliver round-the-clock power.

    We also examine how geopolitical tensions, shifting trade routes and supply chain disruption are driving a new wave of global investment in port infrastructure, and consider what Saudi Arabia must do to unlock greater pools of private capital as sovereign funding gives way to a more institutionally financed infrastructure model.

    Finally, we congratulate the winners of the Mena Banking Excellence Awards 2026, recognising the retail, digital and SME institutions that are setting new benchmarks for innovation, customer experience and business banking across the region.

    We hope our valued subscribers enjoy the August 2026 issue of MEED Business Review

     

    Must-read sections in the August 2026 issue of MEED Business Review include:

    AGENDA: Expo 2030 Riyadh construction gathers pace

    > FOOTBALL: What the 2026 World Cup means for Saudi Arabia 2034

    INDUSTRY REPORT:
    Top 50 Gulf banks
    GCC banks prove resilient amid turmoil

    > AWARDS: Mena Banking Excellence Awards reveals retail, digital and SME winners

    > LEADERSHIP: Private capital and the GCC infrastructure inflection

    > PORTS: Geopolitical risk shapes $513bn of global ports projects

    > INTERVIEW: Developers look beyond standalone solar

    > MAGHREB MARKET FOCUS
    > COMMENT: Maghreb fortunes diverge
    > GOV'T & ECONOMY: Elections fail to change the Maghreb's political realities

    > PAYMENTS: Morocco’s payments shift remains cash-led
    > OIL & GAS: Morocco strives to work out feasible energy strategy
    > OIL & GAS: Libya’s oil and gas project market has grown by 48%
    > OIL & GAS: Value of Algerian extractive projects more than doubles
    > POWER & WATER: Tunisia drives Maghreb power investment with $1.4bn electricity link
    > CONSTRUCTION: Morocco is bright spot in Maghreb construction
    > CONSTRUCTION: Algeria’s record budget sets stage for construction comeback
    > TOURISM: Morocco tourism hits record highs
    > TOURISM: Tunisia's tourism sector eyes record growth

    MEED COMMENTS: 
    I Squared deal is latest sign of PIF's new playbook

    Projects market holds its nerve
    Saudi water sector awaits next catalyst
    Gulf IWPPs risk becoming a two-horse race

    > GULF PROJECTS INDEX: Gulf index maintains growth run

    > JUNE 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINIONThe moving finger of time

    BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17726746/main.gif
    MEED Editorial
  • Bahrain tenders Tashan sewer scheme

    29 July 2026

    Bahrain’s Ministry of Works (MoW) has issued a tender for the construction of a sewer network in Tashan, on the outskirts of Manama.

    Contractors have until 20 September to submit bids.

    The scheme covers blocks 405, 419 and 421, administrative areas covering Tashan and surrounding communities. It will expand the local wastewater collection network and provide connections for existing and planned properties.

    The scope includes about 2 kilometres of 150mm-diameter lateral sewers and 4.8km of main sewer lines ranging from 200mm to 400mm in diameter.

    The contract also covers house connections and future connections for planned properties.

    A pressure station with a capacity of 75 litres a second will be built as part of the scheme. It will be supported by about 834 metres of 250mm-diameter rising main and a discharge chamber.

    Other works include the construction of manholes and associated infrastructure, as well as the decommissioning of an existing lift station.

    The project is part of Bahrain’s wider programme to develop and expand its sewerage networks and treatment infrastructure.

    In June, MoW issued a tender for another sewer network project in A’ali, southwest of Manama, covering Block 730 and part of Block 740.

    The scheme will connect 232 plots to the public sewer network. It includes 5.2km of sewer mains with diameters ranging from 200mm to 300mm and about 3.4km of 150mm-diameter lateral sewer lines.

    The scope also includes house connections, new manholes and connections to the existing sewer network.

    The bid submission deadline for the A’ali project is 5 August.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17800238/main.jpg
    Mark Dowdall