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
-
Kuwait tenders two Al-Mutlaa City construction packages2 September 2026
-
Preferred bidders emerge for Zatca residential PPP2 September 2026
-
NWC confirms $347m Saudi sewage treatment plant deal2 September 2026
-
Egypt signs PPA for 1GW Ras Shokeir wind farm2 September 2026
-
Iraq looks to accelerate oil pipeline projects2 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
-
Kuwait tenders two Al-Mutlaa City construction packages2 September 2026
Register for MEED’s 14-day trial access
Kuwait’s Public Authority for Housing Welfare (PAHW) has tendered two contracts covering the construction of public buildings across five districts at its Al-Mutlaa City residential project.
The first tender covers construction in the N5 and N6 districts, while the second covers N1, N3 and N4.
The tenders were issued on 30 August, with a bid submission deadline of 30 September.
The project is a housing scheme located 38.3 kilometres northwest of the Kuwait metropolitan area.
It covers approximately 104 square kilometres and is expected to house up to 400,000 people.
The mixed-use development will include residential, social, commercial and light industrial areas.
In March 2023, MEED reported that PAHW had appointed France-based Egis as a project management consultant for the Al-Mutlaa City development.
Under the agreement, Egis is providing programme-level service management, construction logistics and interface management services.
The scope of work also includes cost management, a digital programme management system and a project management information system for the scheme.
Al-Mutlaa City is one of the largest housing infrastructure projects being developed by the government as part of Kuwait’s Vision 2035.
UK analytics firm GlobalData expects Kuwait’s construction industry to grow at an average annual rate of 7.1% in 2025-28, supported by investment in renewable energy, transport and oil and gas projects, as well as spending under the New Kuwait 2035 National Development Plan.
Under this strategy, the government plans to invest KD350m ($1.1bn) to develop several sports projects in the country.
The residential construction sector is expected to register average annual growth of 3.8% in 2025-28, supported by the government’s plan to build 65,500 housing units by 2029 through five projects.
MEED’s September 2026 report on Kuwait includes:
> COMMENT: Kuwait keeps dealmaking alive under fire
> GOVERNMENT: Kuwait shows tentative signs of economic development
> BANKING: Necessity is the mother of invention for Kuwaiti lenders
> OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
> POWER & WATER: Kuwait utilities investment shifts towards water
> CONSTRUCTION: Kuwait construction holds up despite regional strife
> MARKET TALK: Kuwait stands resilient amid regional tensionsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19245517/main.png -
Preferred bidders emerge for Zatca residential PPP2 September 2026

Saudi Arabia’s Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), has selected preferred bidders to develop residential buildings at various land ports across the kingdom.
The project covers developments across nine land ports, separated into two packages.
Local firm Saudi Arabian Trading & Construction Company has been selected as the preferred bidder for the first package, which includes the Al-Batha, Salwa, Al-Raqi, Jadidat Arar, Al-Wadiah and Empty Quarter sites.
Bahrain-headquartered Lamar Holding is the preferred bidder for the second package, which includes land ports at Al-Hadithah, Halat Ammar and Al-Durrah.
The project will be implemented as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 23 years, including the construction period.
The contract covers the construction and management of new residential buildings and associated facilities at the land ports, as well as the rehabilitation of existing facilities.
The project is the latest scheme in the kingdom’s PPP pipeline. In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.
Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.
In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19244076/main.jpg -
Egypt signs PPA for 1GW Ras Shokeir wind farm2 September 2026
Register for MEED’s 14-day trial access
A joint venture of the local Hassan Allam Utilities Energy and Infinity Power has signed a power purchase agreement (PPA) with Egyptian Electricity Transmission Company (EETC) for the development of the 1GW Ras Shokeir wind project in Egypt.
The project is located in Egypt’s Red Sea Governorate, within the Gulf of Suez wind corridor. It will cover approximately 143 square kilometres.
The PPA has a 25-year term. The project will supply electricity to Egypt’s national grid.
Ras Shokeir is expected to generate enough electricity to power more than 1.2 million Egyptian homes. It is also expected to avoid more than 1.36 million tonnes of CO2 emissions annually.
The PPA was signed by EETC chairperson Mona Rizk and Infinity Power co-founder and CEO Nayer Fouad, representing the Infinity Power-Hassan Allam consortium.
The signing brings the project closer to development as Egypt seeks to expand its renewable energy capacity. Egypt has set a target for renewable energy to make up 42% of the electricity mix by 2030 and 65% by 2040.
This includes the 500MW Amunet 2 wind project, which is being developed by UAE-headquartered Amea Power following the commissioning of the first Amunet wind project in June 2025.
Hassan Allam Utilities Energy and Infinity Power are also developing Egypt’s $560m West Minya solar plant, which will combine 1,000MWac of solar photovoltaic capacity with a 600MWh battery energy storage system.
In June, MEED reported that a joint venture of Hassan Allam Construction and India’s Sterling & Wilson Renewable Energy had won the engineering, procurement and construction contract for the project.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19242701/main1603.jpg -
NWC confirms $347m Saudi sewage treatment plant deal2 September 2026
Saudi Arabia’s National Water Company (NWC) has signed a contract worth more than SR1.3bn ($347m) with a Saudi-Chinese consortium to rehabilitate, operate and maintain nine sewage treatment plants (STPs).
The 15-year contract covers plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces. The plants have a combined treatment design capacity of more than 337,000 cubic metres a day (cm/d).
MEED exclusively reported in January that the consortium comprising China’s Jiangsu United Water Technology and Saudi-based Armada Holding had won the contract for the project.
The contract is for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10) and includes an initial three-year period for rehabilitation and upgrade works, followed by long-term operation and maintenance.
As MEED understands, United Water will be responsible for design, financing, operation and part of the construction works. Saudi Arabia’s Armada Holding will handle construction, equipment import customs clearance and local business communications. UAE-registered Prosus Holding will act as the financial investor.
LTOM packages
The same consortium is also expected to sign a contract for Package 11 of the LTOM programme in the coming months.
In April, MEED exclusively reported that the consortium won the contract for this project, which will have a combined capacity of about 440,000 cm/d.
Bids for North Western B Cluster (LTOM12) remain under evaluation. The contract covers the construction and upgrade of seven STPs with a combined capacity of about 162,000 cm/d.
NWC also tendered the Eastern A Cluster (LTOM14) package in April, covering the upgrade of six existing STPs with a capacity expansion of 30,000 cm/d at the Al-Jarodia STP.
This will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m.
The bid submission deadline is 30 September.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19242964/main.jpg -
Iraq looks to accelerate oil pipeline projects2 September 2026
Iraq’s Ministry of Oil has held talks with a delegation from Qatari company UCC on accelerating the progress of two major pipeline projects, according to a statement from Iraq’s Office of Media and Government Communication.
The first proposed pipeline route extends from Basra, in southern Iraq, to Haditha, located about 200 kilometres northwest of Baghdad, then on to Faysh Khabur, which lies on the border with Syria and near the border with Turkiye.
The second pipeline extends from Haditha to Syria’s coastal city of Baniyas.
Discussions covered the contract type, implementation timeline and “other technical matters”, according to the statement released by the Iraqi government.
During the meeting, Iraq’s Minister of Oil, Basem Mohammed Khudair Al-Abadi, emphasised the need to expedite the tendering process for the project contracts.
He said all obstacles to progress on the projects needed to be eliminated.
He also said weekly meetings will be held between relevant parties to reach agreements on the economic models for the pipelines and their routes.
The Ministry of Oil said UCC is leading a consortium of companies developing the projects.
It added that the consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.
In July, Iraq’s cabinet approved Basra Oil Company signing a heads of agreement and a non-disclosure agreement with the consortium to explore possible future oil pipeline projects.
Under the terms of the agreement, the consortium will prepare technical and financial feasibility studies for strategic export pipeline projects.
Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.
In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19241649/main.jpg
