meed-logo

line1 line2 line3
SIGN IN / REGISTER

Transport links stitch GCC together

25 November 2024

This package also includes: Cooperation strengthens Gulf markets

Analysis
Colin Foreman
Editor

Transport projects connecting the GCC have made stuttering progress over the years, with brief periods of intense project positioning typically followed by years of little progress. 

These projects are crucial for intra-GCC trade, and, once built, should provide a catalyst for further economic activity.

Since the Al-Ula Accords were signed in January 2021, projects have started to move forwards again, with schemes including the GCC railway network, the GCC grid, and several other road and causeway links at various stages of planning and construction. 

GCC rail

For the GCC railway network, GCC leaders approved the establishment of the GCC Rail Authority in January 2022. The entity is entrusted with overall policymaking and coordination among member states to ensure the smooth delivery and operation of the scheme.

The railway will stretch over 2,177 kilometres (km), from Kuwait, through Dammam in Saudi Arabia, to Bahrain, with a causeway to be constructed between the two countries, and from Dammam to Qatar, Saudi Arabia, the UAE and finally to Muscat via Sohar in Oman.

There will be 684km of track in the UAE, 663km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.

Passenger trains will run at 220 kilometres an hour (km/h), while freight trains will travel at 80-120km/h.

The project is expected to take a significant step forward this year with the award of the contract to prepare the operational plan study for the scheme. Speaking at the Global Rail event in Abu Dhabi on 8 October, sources told MEED that “the evaluation is in the final stages and the contract award is imminent”.

A source added that the General Secretariat of the Cooperation Council has set a deadline of 2030 for the project to be operational.

Several causeways are planned that will provide transport links between countries in the GCC. After stalling after 2010, Qatar and Bahrain have agreed to restart plans to develop the $4bn Qatar-Bahrain Causeway project. The two countries have also instructed the respective authorities to finalise plans for initiating the implementation of the project. The next step will be establishing a technical committee and appointing a consultancy to work on the designs.

The 40km-long causeway will connect the eastern coast of Bahrain to the northern region of Qatar. It will feature a dual two-lane highway and a rail link for the GCC rail network.

Once built, these transport projects should provide a catalyst for further economic activity

Construction on the project was originally scheduled to start in early 2009 after a consortium led by Vinci Construction Grands Projets signed a $3bn design-and-build contract in May 2008.

The consortium also included Qatari Diar Real Estate Investment Company, Germany’s Hochtief, Greece’s Consolidated Contractors Company and Belgium’s Deme Group.

The project was initially designed by France’s Lavigne & Cheron Architects. US-based consultant KBR was appointed as the project management consultant with support from Halcrow, which is now part of US-based Jacobs.

Further crossings

Another planned international crossing is the second causeway between Saudi Arabia and Bahrain. The $3.5bn project, which has been called the King Hamad Causeway project, was moving towards construction in 2021 when it was included in Bahrain’s $30bn Strategic Projects Plan. Since then progress has been slow, and it is understood that the authorities are re-evaluating how the project should move ahead. 

The project involves building a 25km 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 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 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 annum over the past 10 years.

Another causeway being considered is a link connecting Abu Dhabi and Qatar. The proposed link could provide road and rail access between Qatar and the UAE, bypassing Saudi Arabia, located between the countries. 

The concept has been considered before. There were plans in 2005 that involved building a 40km causeway starting near Sila in Abu Dhabi emirate and extending to the south of Doha.

In the past, there have been difficulties with the route because it runs across Saudi Arabian territorial waters.

Road links

Overland road links have also been built. In 2021, a 725km-long road running through the Empty Quarter from Saudi Arabia to Oman opened. The Saudi section of the highway is 564km long, and the Oman section runs for 161km. The highway provides a link between the two countries bypassing the UAE.  

When it opened, the authorities added that the road would improve trade between Oman and Saudi Arabia and give Oman access to Saudi Arabia’s Red Sea Ports. Likewise, it gives Saudi Arabia access to Oman’s ports on the Arabian Sea. 

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/12995564/main.jpg
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Local firm wins contract for Kuwait power project

    19 November 2025

    Local firm Alghanim International has won a contract to provide engineering services at the Subiya power and water distillation plant.

    Kuwait’s Central Agency for Public Tenders approved the award following a request from the Ministry of Electricity, Water & Renewable Energy.

    The contract, valued at $286m, covers engineering, supply, installation, operation and maintenance services to convert the 250MW second phase of the plant’s open-cycle gas turbines to combined-cycle gas turbines.

    The upgrade is intended to increase efficiency and provide additional generation capacity during periods of high demand.

    In July, MEED reported that Alghanim had submitted the lowest bid for the tender ahead of local firms Al-Daw Engineering General Trading & Contracting and Al-Zain United General Trading & Contracting.

    In 2024, US-based GE Vernova completed separate upgrades of four GE Vernova 9F.03 class gas turbines at the 2GW Sabiya combined-cycle power plant. Alghanim International acted as GE’s local engineering partner for that work.

    The Subiya power and water distillation plant is the largest power and water plant in Kuwait, with a power generation capacity of 7,046.7MW, accounting for 35% of the country’s installed capacity.

    It has a water desalination capacity of 100 million imperial gallons a day.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15116135/main.jpg
    Mark Dowdall
  • UKEF issues $3.5bn interest letter for Al-Maktoum airport

    19 November 2025

    Register for MEED’s 14-day trial access 

    The UK’s export credit agency UK Export Finance (UKEF) has issued a $3.5bn expression of interest letter to support the participation of UK businesses in the $35bn expansion of Al-Maktoum International airport, which is also known as Dubai World Central (DWC).

    Chris Bryant, UK minister for trade, handed the letter to Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai Aviation Engineering Projects (DAEP), and Paul Griffiths, CEO of Dubai Airports.

    Letters of interest from UKEF, although not binding commitments, help ensure that UK exporters are given every opportunity to bid for contracts on a project. This is typically achieved by providing financial solutions in exchange for an agreed level of UK content used on the project.  

    Previous letter

    It is not the first time UKEF has issued a letter of interest for the expansion of Al-Maktoum International airport. In 2014, it issued a $2bn letter of interest. In a statement at the time, UKEF said five prime UK-based contractors were being supported, along with UK suppliers across the supply chain.

    The five prime contractors were Carillion, Kier, Balfour Beatty, Laing O’Rourke and Interserve. Of those five companies, Carillion entered liquidation in 2018 and Interserve entered administration in 2019. Balfour Beatty sold its shareholding in Dubai-based Dutco Balfour Beatty in 2017.

    Although some progress was made on the project after the UKEF offer in 2014, the scheme stalled and was revived again in April 2024, when Dubai approved new designs for the airport.

    Project progress

    Since then, the project client, DAEP, has been awarding and tendering contracts for the first construction packages. It has awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works for the terminal building are being undertaken by Abu Dhabi-based Tristar E&C.

    DAEP is also close to formally awarding a contract for the substructure works for the West Terminal and Concourse One, Concourse Two and Concourse Three.

    Tendering is also ongoing for an automated people-mover (APM) system. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. Construction works on the project’s first phase are expected to be completed by 2032.

    The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Dubai has said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    This aviation package also includes:

    > Middle East invests in giant airports
    > Broader region upgrades its airports
    > Global air travel shifts east

     

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115788/main.jpg
    Colin Foreman
  • Riyadh gives Expo infrastructure bidders more time

    19 November 2025

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has extended the deadline for firms to submit commercial offers for the contract to undertake the initial infrastructure works at the site to 23 November.

    ERC had initially set deadlines of 26 October and 9 November for the submission of technical and commercial bids, respectively.

    The tender for the project’s initial infrastructure works was issued in September, as MEED reported.

    In October, MEED revealed that 16 firms had been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.

    The firms invited to bid include:

    • Shibh Al-Jazira Contracting (local)
    • Hassan Allam Construction (Egypt)
    • El-Seif Engineering Contracting (local)
    • Al-Ayuni Investment & Contracting (local)
    • Kolin Construction (Turkiye)
    • Al-Yamama Trading & Contracting Company (local)
    • Saudi Pan Kingdom (local)
    • Unimac (local)
    • Mapa Insaat (Turkiye)
    • Yuksel Insaat (Turkiye)
    • IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
    • Mota-Engil / Albawani (Portugal/local)
    • Almabani / FCC Construction (local/Spain)

    The overall infrastructure works – covering the construction of the main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor

    MEED previously reported that ERC was expected to issue the tender for some of the infrastructure packages in September.

    In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115697/main.jpg
    Yasir Iqbal
  • NHC and Turkish firm sign $266m investment deal

    19 November 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Housing Company (NHC) has signed an investment agreement worth over SR1bn ($266m) with Turkiye’s Emlak Konut to develop new residential communities within the Mecca Gate project in Mecca.

    The agreement was signed on the sidelines of the Cityscape Global 2025 event in Riyadh.

    Emlak Konut will develop 1,000 residential villas spanning over 255,000 square metres (sq m).

    The latest agreement follows the NHC’s signing of deals worth over SR8.5bn ($2.2bn) for the development of two mixed-use and residential communities in Riyadh.

    The first agreement, worth over SR5.2bn ($1.4bn), was signed with local developer Retal Urban Development Company.

    The deal encompasses the development of 4,839 residential units in the Al-Fursan suburb of Riyadh.

    The other contract, worth over SR3.3bn ($880m), was signed with a joint venture of Egypt’s Hassan Allam Holding and local developer Tilal Real Estate for a mixed-use project in the Khozam district.

    The development will cover an area of over 228,000 sq m.

    It will be delivered through Grova Developments, the development arm of Hassan Allam Holding.

    In 2023, NHC and Saudi Arabia’s Housing Ministry signed investment agreements totalling more than SR24bn ($6.4bn) to launch the Al-Fursan residential project.

    Al‑Fursan is described as the largest scheme in terms of area and number of housing units that NHC is implementing in partnership with other real estate developers. 

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and become one of the 10 wealthiest cities in the world.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115626/main.png
    Yasir Iqbal
  • Egypt announces oil discovery in Western Desert

    19 November 2025

    Register for MEED’s 14-day trial access 

    A new gas discovery has been made in Egypt’s Western Desert region, according to a statement released by the Ministry of Petroleum & Mineral Resources.

    The discovery was made by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation (EGPC) and US-headquartered Apache Corporation.

    The field is expected to be brought online this week, according to the ministry.

    The reserves were discovered after drilling the exploratory well ‘Gomana-1’, the ministry said.

    It added that sensors confirmed the presence of gas reserves, and tests indicated that the well is expected to have a production rate of around 36 million standard cubic feet of gas a day.

    Further tests are ongoing, and the initial evaluation of the well’s reserves is currently being finalised.

    The ministry said that the discovery followed the introduction of new incentives designed to encourage additional gas investment within Khalda’s areas of operation.

    Earlier this month, Egypt started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid.

    The country is currently pushing to increase domestic gas production in order to meet domestic demand and reduce its import bill.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15112551/main.png
    Wil Crisp