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Traffic drives construction underground

3 April 2025

 

On 14 February, Dubai construction was thrust again onto the global stage when Elon Musk, the world’s richest man, announced plans to explore the development of an underground Dubai Loop transportation system, along the lines of the Las Vegas Convention Centre Loop project in the US.

Dubai has typically made headlines globally by constructing the world’s tallest towers. As the city becomes increasingly congested on the surface, it is taking some of its largest construction projects underground.

With Musk’s backing, the Dubai Loop scheme is the most high-profile tunnelling project launched to date. It involves carving a futuristic transport system underneath Dubai. The initial phase of the project is currently being studied by Dubai’s Roads & Transport Authority (RTA) in partnership with The Boring Company, which is owned by Musk. It will cover 17 kilometres (km) and have 11 stations, with the capacity to transport over 20,000 passengers an hour.

The project highlights the importance of expanding underground infrastructure in the Middle East region. This is mostly necessitated by the pressure that rapidly growing cities have put on existing transport and utility networks, particularly in major urban centres such as Dubai, Riyadh and Doha.

Underground opportunities

Projects that involve tunnelling, such as metro rail systems, underground highways and pedestrian walkways, are deemed key enablers in reducing congestion and optimising land use.

The recently completed metro systems in Riyadh and Doha are examples of how underground rail networks can facilitate efficient urban mobility, and more such schemes are planned. 

Without these subterranean projects, cities risk being stuck in a permanent state of gridlock, with longer commute times and decreased productivity. At the same time, tunnelling allows urban planners to integrate sustainable transport solutions, as well as large-scale utilities networks, without disturbing existing cityscapes, thereby enhancing connectivity and economic growth.

These developments signal a major shift in engineering priorities, with regional governments investing in underground transport, sewerage and metro extensions to accommodate their growing populations and infrastructure needs.

While the tower crane-dotted skylines of urban centres in the GCC attract attention, delivering major projects underground is an equally impressive engineering feat. Tunnelling under busy cities requires advanced excavation techniques, careful planning and coordination to avoid disruptions.

More tunnelling work is expected as Dubai takes another significant step forward in tackling its ongoing traffic problems [with] a new metro link

UAE tunnelling projects

Tunnelling work forms a significant portion of the Dubai Metro Blue Line extension. Awarded in December for AED20.5bn ($5.5bn), the project includes 15.5km of underground track and five subterranean stations. When operational in 2029, the Blue Line will significantly expand Dubai’s metro capacity, linking major residential and commercial hubs.

More tunnelling work is expected as Dubai takes another significant step forward in tackling its ongoing traffic problems by starting the procurement process for its next metro link: the Gold Line.

Although the technical details of the project have yet to be revealed, it is expected that tunnels will form a major component of the scheme given that the new line will run through busy urban areas where there is little space to build overground. 

The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

As a first step, the RTA has sent a request for proposals to companies for the lead consultancy role on the multibillion-dollar project.

The UAE’s Etihad Rail also began a study of the tunnels required for the high-speed railway line connecting Abu Dhabi and Dubai in January. The survey works are ongoing on the Jaddaf and Dusup tunnels that will serve the high-speed rail link. Initial plans for the project include tunnelling works totalling 31km.

Another major tunnelling project in the UAE is the $22bn Dubai Strategic Sewerage Tunnels scheme. The client, Dubai Municipality, is preparing to tender its first packages, which include deep tunnels that will stretch 42km in Jebel Ali and 16km in Warsan.

The project will be delivered under a public-private partnership model, with international consortiums competing for contracts. Once completed, these tunnels will replace the traditional wastewater network, reducing energy consumption and enhancing long-term sustainability.

Saudi schemes

In Saudi Arabia, Riyadh is preparing to expand its metro network with the addition of a Line 7 and an extension to the existing Line 2.

The total length of Line 7 will be about 65km, of which 47km will be underground. The line will have 19 stations, 14 of which will be underground.

The project involves constructing a metro line linking the Qiddiya entertainment city development, King Abdullah International Gardens, King Salman Park, Misk City and Diriyah Gate. 

In March, the Royal Commission for Riyadh City (RCRC) gave consortiums until 15 June to submit their bids for a design-and-build contract for the construction of Line 7.

The planned Line 2 extension is 8.4km long, of which 7.1km is underground, and three out of its five stations will be built underground. The RCRC is expected to award the construction contract this year.

In January, the kingdom also completed the phased roll-out of the Riyadh Metro network. The current network comprises six lines spanning about 176km, of which 74km is constructed underground.

These numbers indicate that over 42% of the overall network is underground, highlighting the growing importance of tunnels in the kingdom’s plans to improve infrastructure in its most densely populated cities.

Tunnelling works are also a key component of the plans to improve the stormwater drainage system in Jeddah, where the municipality is preparing for the construction of the King Abdullah Road-Falasteen Road tunnel.

The three-year scheme involves constructing 5.3km of tunnels with an internal diameter of 7.2 metres using tunnel boring machines (TBMs) and another 3.4km of tunnels with a diameter of 3.5 metres driven by pipe jacking or TBMs.

At the kingdom’s Neom gigaproject, city planners are looking to find solutions to many of the problems faced in existing cities and, as a result, tunnels and large-scale underground utilities corridors are being built at the beginning of the project. For example, the development’s Delta Junction tunnels will serve as a railway junction connecting the Spine infrastructure corridor with the Neom Connector rail link to the Oxagon industrial zone. 

The project involves 26.5km of tunnelling work that will be split into a north and a south lot. The construction works are expected to begin this year as the client is evaluating the revised proposals submitted by firms in November last year.

Kuwait Metro will feature extensive tunnelling … ensuring minimal disruption to existing roads while integrating with future transport networks

Further tunnel projects

Beyond the Gulf, Egypt has a long history of tunnelling projects, as it has had to deal with crippling congestion and urban overcrowding for decades. In the 1980s, work was completed on two major projects that involved tunnelling: the first phase of the Cairo Metro system and the Greater Cairo wastewater project, which involved the construction of sewage tunnels on the east and west banks of the Nile. 

Today, Cairo’s tunnelling projects include the Cairo Metro Line 4 project. Spanning 42km with 39 stations, it involves over 20km of tunnels.

Meanwhile, in Morocco, national railway operator L’Office National des Chemins de Fer (ONCF) is constructing a tunnel project in Rabat.

In February, ONCF announced a 3.3km tunnel to be constructed under the Bou Regreg river at an estimated cost of MD1.4bn ($140m). The tunnel will connect the Sale and Agdal stations in an effort to alleviate traffic.

Similarly, the long-awaited Kuwait Metro will feature extensive tunnelling to navigate the dense urban fabric of Kuwait City, ensuring minimal disruption to existing roads while integrating with future transport networks. 

Qatar’s expansion of Doha Metro, meanwhile, requires additional underground infrastructure to connect developing areas and support the country’s vision for a comprehensive public transport system. 

Mecca Metro, already serving millions of pilgrims, is also set for further expansion, likely involving significant tunnelling to facilitate smoother access to holy sites while overcoming geographic constraints. 

In Oman, the Muscat Metro project is likewise expected to link key districts while preserving the city’s landscape and avoiding disruptions to arterial roads by introducing underground sections. 

All of these projects show that tunnels will play an important role in the region’s future as it strives to create cities with more efficient and environmentally sustainable transit and utilities systems. 

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Yasir Iqbal

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    When the first missiles and drones were fired at the GCC on 28 February, the region’s economic story pivoted abruptly, from long-term vision-building to near-term resilience.

    The conflict is now the Gulf’s most consequential economic stress test in a generation. It is challenging the safe haven premium that underpins capital inflows, while disrupting the physical networks that keep the region’s economies running, from energy exports and shipping lanes to airports and tourism.

    Over the past two decades, GCC governments have worked to pair diversification with an image of stability: open economies, predictable regulation and security that felt, to many investors, close to non-negotiable.

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    Energy infrastructure has been damaged and supply chains have been paralysed, but other parts of the economy, such as retail and construction, have continued to operate largely as normal.

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    The clearest and most quantifiable example of the economic toll came when Iranian strikes targeted Ras Laffan Industrial City in Qatar. The damage reported by QatarEnergy is significant. Liquefied natural gas (LNG)-producing trains 4 and 6, which account for about 17% of Qatar’s total LNG exports, need repairing. The expected revenue loss is $20bn a year.

    In a statement, QatarEnergy president and CEO Saad Sherida Al-Kaabi said the repairs will take three to five years to complete, underlining the long-term impact on the Qatari economy. JP Morgan estimates that Qatar’s GDP could contract by 9% this year.

    Qatar is not the only GCC state to have suffered damage to its energy infrastructure. Bahrain, Kuwait, Oman, Saudi Arabia and the UAE have all had energy assets targeted.

    In addition to damage caused by missiles or drones, logistics problems triggered by the closure of the Strait of Hormuz are having a material impact. Aluminium Bahrain (Alba) has implemented a controlled shutdown of reduction lines 1, 2 and 3, one example of how supply chain paralysis is spreading into industry.

    By idling 19% of its production capacity, approximately 308,000 tonnes a year, Alba is attempting to preserve raw material inventory and prioritise the operational stability of its newer, more efficient lines 4, 5 and 6. However, the macro implications for Manama are severe. Alba contributes 12% to Bahrain’s GDP, with the broader aluminium sector, a vital driver of the kingdom’s Economic Vision 2030, accounting for over 15%.

    The conflict is now the Gulf’s most consequential economic stress test in a generation

    Dubai disruption

    In Dubai, where the economy has made great strides in diversifying away from oil and gas and into sectors including tourism, aviation and real estate, the disruption caused by the war is also taking a toll. Despite a few high-profile attacks, the city’s infrastructure remains almost entirely intact. The problem is that its accessibility has been halved. As of late March, data shows flight capacity hovering at 50% across 70% of destinations. Hotels in the emirate are operating at single-digit occupancy levels.

    In response, Dubai has begun reviewing support packages for the sector, including fee relief and the removal of penalties for delayed payments. This stance mirrors Dubai’s response to the Covid-19 pandemic, a crisis the emirate ultimately navigated well. The plan is that an initial focus on resilient source markets, such as Russia and Africa, will allow the tourism sector to move onto the road to recovery.

    The Dubai property market is perhaps the most sensitive barometer of international confidence. For three weeks, the market has lived in a state of suspended animation. While AED11.9bn in real estate sales were recorded in early March, analysts warn of a significant time lag. These figures represent registrations of sales agreed weeks or months ago, and the true impact of the 28 February escalation may not be reflected in official data until late March or April.

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    More than 15,000 flights were cancelled at seven major regional airports in the first week of March

    Aviation strain

    With airports in Bahrain, Riyadh, Kuwait, Dubai and Abu Dhabi all targeted during the conflict, the Middle East’s aviation sector is grappling with unprecedented operational friction. According to Fitch Ratings, more than 15,000 flights were cancelled at seven major regional airports in the first week of March alone.

    The main international hubs, Dubai, Abu Dhabi and Doha, are facing a sharp spike in operating costs. Rerouting around restricted airspace requires longer flight paths, additional technical stops and increased expenses for crew overtime. While carriers have buffers through fuel hedging, ranging from 50% to 80%, the sheer volume of refunds, vouchers, and accommodation for 1.5 million displaced passengers is weighing on balance sheets.

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    Banking support

    Underpinning all sectors is the banking system, and the response from regional regulators has been swift. The Central Bank of the UAE (CBUAE) has approved a Financial Institution Resilience Package that aims to both reassure and protect the economy.

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    For decades, the GCC has positioned itself as a place where capital is safe, taxes are low and the lifestyle is aspirational. The conflict that began on 28 February has undermined that perception of safety. Restoring it will be the key challenge for the coming years.

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    Progress on Iraq’s project to develop the strategically important Akkas gas field has been disrupted by security issues related to the US and Israel’s ongoing war with Iran, according to industry sources.

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