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.
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Bahrain construction activity remains subdued5 November 2026

Bahrain’s construction and infrastructure sector remains subdued, with project awards still depressed despite a modest uptick this year.
Data from regional projects tracker MEED Projects shows that $737m-worth of construction and infrastructure contracts had been awarded in the kingdom by 29 October 2026. While this exceeds the $686m recorded across the whole of 2025, it confirms that the market remains in a prolonged downturn.
Between 2016 and 2020, Bahrain recorded more than $2bn in annual awards, peaking at nearly $3.9bn in 2016 when major packages for the Bahrain International airport expansion were signed. Awards then fell to $912m in 2021 before rebounding to almost $2bn in 2022. The recovery was short-lived, with awards declining to $1.66bn in 2023, $1.57bn in 2024 and $686m in 2025.
Major awards
Activity this year has been supported by several housing and transport packages.
The largest award was an estimated $400m contract secured by a joint venture of local developer Naseej and China Machinery Engineering Corporation for the Madinat Khalifa project. Procured under the Mega Government Land Development Programme, the scheme involves the design, financing, construction, marketing and sale of more than 2,500 housing units on two government-owned land parcels, alongside roads and electricity, water, sewage and drainage networks.
Road infrastructure also produced a major commitment. The Ministry of Works amended its award for package four of the Busaiteen Link project, appointing a joint venture of Nass Company and Nasser Hazza Al-Subaei Contracting Company under a BD65m ($172m) contract. The three-year deal replaces a BD69.7m ($185m) award made in January to a consortium of Haji Hassan Group, Saudi Arabia’s Alomaier Trading & Construction Company and Greece’s Terna.
The package includes a signature bridge connecting Muharraq with the North Manama Causeway and Bahrain Bay, as well as road works between junctions four and five.
Residential projects provided further volume. Mohammed Abdulmohsin Al-Kharafi & Sons secured a $112.4m contract to build 512 social apartment units on Madinat Salman’s Island 12. Binaa Al-Bahrain also appointed Kooheji Contractors to build Bayview in Manama, a development comprising four residential buildings and 489 apartments.
Early-stage commitments included a BD5m ($13.5m) consultancy contract awarded to US-based Populous for the planned Sports City at Sakhir. The scope covers the masterplan, internal infrastructure, phase 1A design and tender documents. Lebanon’s Dar Al-Handasah won a QR28m ($7.7m) contract to conduct feasibility studies for the proposed 40-kilometre Qatar-Bahrain Causeway, also known as the Friendship Bridge.
Transport links
Transport is the most promising near-term outlet for the market, with a pipeline valued at about $15bn, according to MEED Projects data.
Cross-border rail has re-emerged as a strategic focus. Bahrain has introduced legislation to establish a framework for constructing, operating, maintaining and regulating railway networks, including licensing, safety, cross-border services, and passenger and freight tariffs.
The move comes as Gulf states prepare to advance the GCC railway network, which is expected to begin operating by the end of 2030. Bahrain’s proposed rail link to Saudi Arabia is expected to run via the planned King Hamad Causeway, a second fixed connection between the two countries alongside the King Fahd Causeway.
Road expansion is also progressing. In September, the Bahrain Tender Board received bids from Nass Contracting, Haji Hassan Group, Almoayyed Contracting Group, Mohammed Abdulmohsen Al-Kharafi & Sons, Eastern Asphalt & Concrete Production, Cebarco Bahrain and Kingdom Asphalt for the upgrade of two kilometres of the Sheikh Jaber Al-Ahmed Al-Sabah Highway. The works involve a four-lane dual carriageway with service roads.
Industrial and maritime infrastructure is advancing, too. The Ministry of Works received five bids for engineering and quantity surveying services linked to reclamation works at Salman Industrial City and Bahrain Logistics Zone.
Dar SSH International Engineering Consultants submitted the lowest offer at BD778,580 ($2.1m), followed by Aecom at $2.2m, Ansari Engineering Services at $2.3m, Millet Engineering Bureau at $2.4m and Ayesa at $2.8m. The project involves reclaiming about 1.13 million square metres of land using 9.67 million cubic metres of fill near Khalifa Bin Salman Port.
The government is also preparing the Bahrain Northern Link Road as a public-private partnership. The 29.5km highway will connect the North Manama Causeway with Suhaila Island and the King Hamad Causeway, creating a parallel east-west route to Sheikh Isa Bin Salman Highway and improving links between Khalifa Bin Salman Port and Saudi Arabia.
Building pipeline
Outside transport, Bahrain’s construction pipeline exceeds $6bn. The most prominent project is the Bahrain International Sports City development in Sakhir. In September, 21 local and Saudi Arabian contractors were prequalified for the first-phase construction contract, which is expected to include Bahrain’s largest sports stadium and a multipurpose indoor sports arena.
The planned National Assembly Building in Manama is another significant civic project. Bids submitted earlier this year included three options from Cebarco Bahrain, ranging from $163.8m to $200.3m, alongside offers of $239.4m from Nass Contracting and $316.4m from Kooheji Contractors.
The four-storey complex will be built on a reclaimed island and will include a main hall for joint sessions, separate debating chambers, administrative offices, an auditorium, library, museum, meeting rooms, public spaces, underground parking and supporting facilities.
These projects provide a route out of Bahrain’s multi-year downturn. The market’s recovery, however, will depend on whether the government converts feasibility studies, advisory mandates and prequalification exercises into construction awards.
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Bahrain creaks under the strain of war5 November 2026

With a small economy and exports almost wholly reliant on passage through the Strait of Hormuz, Bahrain has been painfully exposed to the turmoil caused by the Iran war. The country’s social makeup – with a Shia majority ruled by a Sunni-dominated regime – is also showing signs of strain.
The economy is expected to contract by 11.3% this year, according to the IMF’s latest Regional Economic Outlook report. That is not quite as bad as some of its neighbours, such as Kuwait and Qatar, but it is well above the 4.8% fall expected for the GCC as a whole.
Just as importantly, Bahrain also starts from a much weaker base than its Gulf peers, with a smaller economy, limited hydrocarbon resources and high levels of government debt.
“Countries with the largest reserve declines since the start of the conflict generally entered the shock with comfortable reserve positions, with Bahrain as a notable exception,” the IMF noted in its 22 October report.
Physical disruption
Iran’s closure of the Strait of Hormuz this year has cut Bahrain off from its most important trade route for both exports and imports. In addition, major industrial and military targets have been hit by Iran on multiple occasions, including the US naval base and the Aluminium Bahrain (Alba) plant.
The latter suffered a 32% year-on-year drop in sales volumes and a 61% fall in output in the first half of the year as a result of the Iranian attacks – although higher aluminium prices and lower costs meant that the company’s revenues held steady and profits actually increased year-on-year.
Other areas of the economy have been badly affected too, with the Bapco oil refinery, a desalination plant and an Amazon data centre all hit in Iranian strikes. The IMF also noted that Bahrain has seen one of the worst declines in hotel occupancy rates during the year. Inflation has also been rising, reaching an annual rate of 3% as of July.
As a result, the government’s already weak financial position is under even more pressure. The Central Bank of Bahrain’s reserves have slumped sharply since the start of the war, falling from BD1.8bn ($4.8bn) as the war broke out, to a low of BD568m three months later. They recovered some of the ground lost in the following months, but remain well below the pre-war level. Reserves stood at BD887m by September, supported by drawing on a BD2bn ($5.4bn) currency swap line provided by the UAE in early April.
Total public debt had reached BD20.3bn at the end of August, the most recent data available, up from BD18.2bn a year earlier. That is significantly larger than the country’s GDP, which stood at BD15.7bn in 2025 and is expected to end this year at just BD13.9bn.
To make matters worse, the markets have been pushing up Bahrain’s borrowing costs to levels not seen since 2018, when the government had to turn to Kuwait, Saudi Arabia and the UAE for a bailout to avoid a potential sovereign default.
External support
With no easy way to reduce its debts or plug its budget deficit, Bahrain is likely to seek more assistance from its wealthy neighbours – although any aid will likely come with demands for spending restraint and other reforms that will be uncomfortable for the government to accept.
The appetite of some neighbouring states may also be more limited than in the past, given their own economies have been weakened by the war, but King Hamad Bin Isa Al-Khalifa’s close ties with the UAE leadership in particular are likely to ensure some help is forthcoming.
Asharq Bloomberg reported in late October that Manama has been holding talks with neighbouring states for a fresh round of support, with the UAE expected to emerge with a leading role. However, the timing and scale of any bailout remain unclear.
Without external assistance, the country’s finances are likely to deteriorate further. Ratings agency Capital Intelligence said in an October report that it expected debt levels to rise further in 2027-28, with the budget deficit averaging 9.3% of GDP in those years.
“The burden of government debt on the budget is also very high, with interest payments projected to average 30.7% of revenues in 2026-28, up from 27.1% in 2025,” it noted.
King Hamad Bin Isa Al-Khalifa’s close ties with the UAE leadership in particular are likely to ensure some help is forthcoming
Political tensions
Politically, Manama has appeared increasingly cautious towards its own citizens, with planned elections for both municipal councils and the Council of Representatives delayed until next year. Announcing the postponement of the council elections in mid-October, deputy prime minister Sheikh Khalid Bin Abdulla Al-Khalifa referred vaguely to “the current circumstances and their resulting effects” as the reason for the delay.
The postponement removes a formal channel for the public to express grievances about the country’s current situation. At the same time, the authorities have moved against perceived support for Iran during the conflict. More than 600 people have been arrested this year on charges including espionage and supporting an enemy state, according to the Bahrain Institute for Rights and Democracy (Bird), a London-based advocacy group that is critical of the government. Dozens of people have also had their citizenship revoked.
“Since the outbreak of the Iran war, repression in Bahrain has intensified sharply,” said Bird advocacy director Sayed Ahmed Alwadaei.
Some analysts warn that the crackdown could prove counterproductive. The Bahrain researcher at conflict monitoring group Acled said that tensions between the government and its Shia opposition were gradually placing the country at high risk of instability.
The economic outlook could change quickly if a resolution to the Iran-US conflict is found. The IMF predicts that the economy could rebound to a growth rate of 13.9% next year, before settling back to a more sustainable 3.1% the year after – but that depends on Gulf trade routes reopening and energy production normalising. The country’s political tensions will be harder to resolve.
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Sharjah opens first phase of new Dubai road connection5 November 2026
Sharjah’s Roads & Transport Authority (SRTA) has partially opened the first phase of a major road development project designed to improve connectivity between Sharjah and Dubai.
The initial opening includes the partial launch of the Al-Taawun interchange, alongside several bridges and junctions providing one-way traffic flow from Sheikh Mohammed Bin Zayed Road toward Expo Centre Sharjah.
Tunnel construction in the Al-Taawun area is also progressing under the scheme. The 500-metre-long tunnel will run beneath the Al-Taawun roundabout, providing three lanes in each direction to link Al-Taawun Street to Al-Nahda Bridge and onward to Dubai.
The project will also include a signalised intersection designed to handle approximately 4,200 vehicles an hour in each direction. In addition, the tunnel will provide access to Expo Centre Sharjah and form part of a transport corridor linking to Al-Noor Road.
The Al-Taawun tunnel project is the centrepiece of a broader AED750m ($204m) road development programme in Sharjah, which comprises a network of tunnels, bridges and intersection upgrades.
The other projects that form part of the programme include:
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- Industrial Streets 1 and 2 bridges: Involves constructing two 130-metre-long bridges with two lanes in each direction. These will connect to Maleha Road, Sheikh Khalifa Bin Zayed Road and Al-Waset Road, adding capacity of roughly 2,800 vehicles an hour in each direction.
- Industrial Street 3: Encompasses two new bridges linking Sharjah’s industrial zones to the Ring Road. The 2.7-kilometre scheme will add dedicated turning lanes toward Maleha Road, Sheikh Khalifa Road and Al-Dhaid Road, along with a culvert linking Industrial Street 3 to the Ring Road. It will increase capacity by about 5,200 vehicles an hour across both directions, improving links between Sheikh Mohammed Bin Zayed Road, Al-Khan Street and Al-Ittihad Road.
- Sheikh Mohammed Bin Zayed Road Interchange: Entails upgrading the existing interchange to improve connections between the highway and the Al-Taawun, Al-Khan and Al-Buhaira districts.
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Engie completes refinancing of Oman power plants5 November 2026
French developer Engie has announced that it has reached financial close on the refinancing of the Sohar 2 and Barka 3 independent power projects (IPPs) in Oman.
The transaction follows 15-year extensions to the plants’ power purchase agreements (PPAs) in March, securing their long-term operations through to 2043.
As previously reported by MEED, the new agreements for the 750MW Sohar 2 and 750MW Barka 3 IPPs will take effect on 1 April 2028.
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Al-Batinah Power Company and Al-Suwadi Power Company operate the Sohar 2 and Barka 3 power plants, respectively.
According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle called Al-Suwadi Power Company.
The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%) and the Public Authority for Social Insurance (10%).
In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.
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Aramco seeks to expand East-West crude pipeline5 November 2026
Saudi Aramco is planning to expand its East-West oil pipeline network, aiming to strengthen the kingdom’s ability to transport crude oil while bypassing the Strait of Hormuz.
Aramco operates the 1,200-kilometre East-West pipeline from Abqaiq in the Eastern Province to Yanbu on the Red Sea coast. The pipeline currently has an oil transportation capacity of 7 million barrels a day (b/d).
The pipeline was targeted by Houthi missiles in September and by Iran in April. Aramco resumed crude oil exports through the pipeline at the start of October.
“With regard to the expansion to our East-West pipeline and the additional networks that we are building, this work has already started,” Amin Nasser, Aramco’s president and CEO, told analysts on a call following the company’s announcement of its Q3 2026 financial results on 3 November.
Nasser had previously said in an interview with Al Arabiya Business that Aramco had begun engineering work on the East-West pipeline expansion project during the early stages of the US-Iran conflict.
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Aramco is also undertaking engineering work on additional export routes, Nasser said.
He added that the company would not disclose details of the proposed routes until it made final investment decisions.
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