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
  • Egypt’s Obelisk equity move merits attention

    27 February 2026

    Commentary
    Mark Dowdall
    Power & water editor

    The first phase of Africa’s planned largest hybrid solar and battery installation project reached commercial operations this week. While the 1.1GW Obelisk facility in Egypt is significant in capacity terms, the more interesting detail may lie in its ownership structure.

    Scatec secured the 25-year US dollar-denominated power purchase agreement in 2024 and moved the project into construction as majority shareholder with Norwegian Investment Fund for Developing Countries (Norfund).

    In November, France’s EDF acquired a 20% equity stake to join the project as a shareholder, while discussions with additional equity partners are at an “advanced” stage.

    With the development risk largely already absorbed and revenues secured under a long-term, dollar-denominated contract, the question arises: how are developers approaching capital allocation in the renewables market?

    Especially in emerging markets, sponsors must consider currency convertibility, sovereign exposure and overall balance sheet concentration. Bringing in partners after key milestones reduces that exposure without abandoning the asset.

    However, risk mitigation is not the only driver behind these decisions.

    This week, Masdar agreed to sell a 60% stake in a portfolio of wind assets in Portugal, a more mature European market with stable regulation and limited currency risk.

    Given the developer’s 100GW global target, this would seem a prudent way to recycle capital as part of an aggressive growth strategy.

    Meeting global climate targets will require sustained and rapid expansion of renewable capacity. Estimates suggest the world must add more than 1,100GW of renewables annually through 2030 to remain on track.

    Increasingly, as pipelines expand and capacity targets rise, developers are likely to weigh carefully when to hold assets and when to release capital.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15798541/main.jpg
    Mark Dowdall
  • Petrokemya awards contract for ethylene oxide project

    27 February 2026

    Register for MEED’s 14-day trial access 

    Petrokemya, an affiliate of Saudi Basic Industries Corporation (Sabic), has awarded China National Chemical Engineering Group Corporation (CNCEC) the main contract for an ethylene oxide catalyst project.

    The project covers engineering, procurement and construction (EPC) of a new 4,000-tonne-a-year (t/y) ethylene oxide catalyst production unit, encompassing multiple units for catalyst carrier washing and drying, as well as supporting utilities.

    Ethylene oxide catalysts are the core technology of the ethylene oxide industry chain, directly determining production efficiency, product quality and energy consumption of the process unit.

    Petrokemya is a wholly owned affiliate of Sabic, with its main petrochemical production complex located in Jubail Industrial City, in Saudi Arabia’s Eastern Province.

    The ethylene oxide catalyst project is the ninth contract awarded by Petrokemya to CNCEC since 2015. Previous jobs cover EPC works on seven specialty chemical projects and a project to upgrade and expand output capacity at Petrokemya’s main methyl tert-butyl ether (MTBE) production unit.

    Petrokemya awarded CNCEC the contract for the MTBE plant expansion project in November 2022, with the contractor starting work the following month.

    Through the project, the output potential of Petrokemya’s MTBE unit will increase from 700,000 t/y to 1 million t/y, purportedly making it the world’s largest single-unit MTBE plant.

    CNCEC achieved mechanical completion of the MTBE plant expansion project in August last year, and the project is now understood to have been commissioned.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15797372/main4837.jpg
    Indrajit Sen
  • Regulatory environment shifting for Kuwait oil and gas tenders

    27 February 2026

     

    Changes to the way key contracts are tendered in Kuwait have increased expectations that the country is shifting to a new regulatory environment for oil and gas projects.

    Contractors interested in bidding for Kuwait’s planned tender for a $3.3bn gas processing facility have been briefed that the country’s Central Agency for Public Tenders (Capt) will not be involved in the tender process.

    The exclusion of Capt from participating in the tender process has come at a time of increasing concerns surrounding the role of the agency, and has sparked speculation that it could be excluded from an increasing number of strategic tenders in future.

    Capt is responsible for reviewing technical and commercial evaluations of bids and verifying that bidding is competitive.

    Prior to its suspension in May 2024, Kuwait’s parliament was often blamed for blocking projects and halting the initiatives of Kuwait Petroleum Corporation (KPC).

    However, the suspension of parliament has not triggered an uptick in project activity at KPC, indicating that other problems are holding back decision-making.

    As time has passed, many stakeholders have started to view Capt as a key sticking point in the tendering process.

    One source said: “There is a lot of frustration within some parts of the country’s oil and gas sector about the time it takes for Capt to review everything and approve a tender.”

    Although this is not completely unheard of for small contracts tendered by Kuwait Gulf Oil Company (KGOC) to bypass Capt, it is unusual to see very large contracts bypass the agency.

    “A lot of people were very surprised when they heard that Capt would not be involved in this process,” said one source.

    “While the agency is resented by many in the sector that see it as a big reason for a lot of delays, it’s also highly respected for stopping corruption and bad practices.

    “If you look historically at which large contracts avoided a review by Capt or its predecessor, it was only the most critical and urgent projects.

    “The fact that this project is being permitted to side-step the agency’s process seems to mark a shift – and we could well see more big contracts following the same route in the future.”

    Past exceptions

    An example of a time period when key contracts were allowed to bypass Kuwait’s Central Tenders Committee (CTC), the predecessor to Capt, was in 1991.

    During this time, in the wake of the Gulf War, urgent contracts needed to be tendered by Kuwait Oil Company (KOC), including some related to extinguishing fires at oil wells, which were lit by retreating Iraqi troops.

    One source said: “I think the early nineties was the last time that large contracts were tendered by KOC without going through the relevant agency.

    “It is easier to bypass Capt when it is a KGOC contract, but it’s still very surprising to see it with a contract of this size.”

    If more contracts in the future are “fast-tracked” in the same way, it is likely that many stakeholders will welcome the effort to speed up tendering.

    However, some are worried that if the streamlined tendering model is replicated too widely, it could undermine checks and balances that stop corruption.

    “Kuwait is lucky as it has a system that makes corrupt practices very difficult to participate in,” said one source.

    “The country needs to be careful and make sure that it doesn’t undermine the rigour of the system by prioritising convenience.”

    Direct awards

    Another factor that has impacted expectations about the future of project tendering in Kuwait’s oil and gas sector is that the methods used for several large contracts have been recently tendered in other sectors.

    Key tenders that are impacting the discussions surrounding Kuwait’s oil and gas sector are the award of the $4bn Grand Mubarak Port contract to China Harbour Engineering Company in December and the award of a $3.3bn wastewater treatment plant contract to China State Construction Engineering Corporation in January.

    Both of those direct contract awards were government-to-government agreements that did not have an open tender process in Kuwait and were not approved by Capt.

    One source said: “These huge contract awards to Chinese companies without open tenders in Kuwait were extremely surprising.

    “If you had asked me at the start of last year whether this kind of thing would be signed off, I would have told you it’s highly unlikely.

    “I think there is no reason why we couldn’t see similar contract awards coming in the future in Kuwait’s oil and gas sector.”

    Another source said: “Just like the gas processing contract, these contracts awarded to Chinese firms seem to have side-stepped Capt in a way that is very surprising.”

    The planned $3.3bn gas processing facility is not the first time that KPC has tried to reduce its reliance on Capt for processing tenders.

    In April 2024, KPC launched its own tendering portal in an effort to streamline the tendering process for projects in the oil and gas sector.

    The portal was named the “KPC and Subsidiaries K-Tendering Portal” and is referred to as “K-Tender” by contractors.

    The portal gave KPC a way of tendering and communicating with contractors without relying on the Capt website.

    “The K-Tender portal was a step towards reducing reliance on Capt and gave KPC the flexibility to tender projects without Capt, even though, at the time, KPC made it clear that it intended to list all tenders both on the Capt website and its own portal.”

    The recent direct contract awards to Chinese contractors and the tendering process for the $3.3bn gas processing facility have sent a signal to contractors in the Kuwaiti market that more unusual tenders could be in the pipeline.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15791028/main.gif
    Wil Crisp
  • Kuwait awards oil pier contract

    27 February 2026

    Kuwait National Petroleum Company (KNPC) has awarded local firm Gulf Dredging & General Contracting Company a $172m contract to help develop a new south arm facility at the Shuaiba oil pier.

    The scope of the contract covers civil, marine, mechanical and electrical work, according to a statement.

    Gulf Dredging & General Contracting Company is a subsidiary of Kuwait-headquartered Heisco.

    The main contractor on the Shuaiba oil pier project is the Greek construction firm Archirodon. In October last year, KNPC awarded Archirodon a KD160m ($528m) contract to develop the new south arm facility.

    The Shuaiba oil pier comprises several structures, including the approach trestle, the north arm facility and the south arm facility. A number of planned projects are to be developed at the Shuaiba port facilities.

    The north arm facility consists of two berths, 31 and 32. When operational, it loads refined products for both KNPC and state-owned Petrochemicals Industries Company.

    The north arm facility is currently not operational and will be upgraded as part of a separate project.

    KNPC is a subsidiary of Kuwait Petroleum Corporation (KPC).

    Last year, KPC chief executive Sheikh Nawaf Al-Sabah reiterated that the company plans to increase its oil production capacity to 4 million barrels a day by 2035.

    About 90% of Kuwait’s oil production comes from Kuwait Oil Company, which also plans to achieve a daily gas production capacity of 1.5 trillion cubic feet by 2040.

    Kuwait is estimated to have 100 billion barrels of oil reserves.

    Under KPC’s 2040 strategy, it plans to invest $410bn, sourced from cash flow, debt and joint ventures with other businesses.

    Of the $410bn, KPC and its subsidiaries intend to invest $110bn to accomplish the group’s energy transition targets.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15791026/main.jpg
    Wil Crisp
  • Local firms win $378m Qatar project contracts

    27 February 2026

     

    Qatar’s Public Works Authority (Ashghal) has awarded construction contracts for two major projects in Doha to a pair of local contractors.

    According to the results of the tender published on Ashghal’s website, a joint venture of Imar Trading & Contracting and Al-Sraiya Trading & Contracting won a QR1.1bn ($323m) contract for the redevelopment of Hamad General Hospital.

    Qatar Building Engineering won the other QR198.5m ($55m) contract for the design and build of the new Q-Post headquarters building and sorting facility.

    The two projects are part of 12 newly signed contracts announced by Ashghal earlier in February.

    The other projects awarded include the renovation of the Qatar Racing & Equestrian Club and the Qatar Equestrian Federation, as well as the implementation of phase four of the Al-Uqda Equestrian complex development.

    In the roads and infrastructure sector, four projects have been awarded, led by packages one and two of the road and infrastructure development works in Izghawa and Al-Thumaid.

    The awards also include a project covering landscaping and an air-conditioned walkway at Qatar University, as part of broader public facilities improvement initiatives.

    Mohammed Bin Abdulaziz Al-Meer, president of Ashghal, said that the projects have been awarded to Qatari firms, reflecting Ashghal’s commitment to strengthening the role of local companies.

    According to UK analytics firm GlobalData, Qatar’s construction industry is expected to expand by 4.3% in 2026, supported by investments in renewable energy and transportation infrastructure.

    According to the Planning & Statistics Authority, Qatar’s construction value-add grew by 6.6% year-on-year in the first half of 2025. 

    GlobalData expects the industry to grow at an annual average growth rate of 4.6% in 2027-29, supported by investments in construction, energy and infrastructure projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15795459/main.jpg
    Yasir Iqbal