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
  • Etihad Rail to begin passenger rail operations from 30 June

    26 June 2026

    Abu Dhabi’s Etihad Rail is set to begin passenger rail operations on 30 June 2026, launching an introductory operational phase on the Abu Dhabi-Fujairah route. Tickets are already on sale through the operator’s digital platforms.

    The passenger roll-out marks a major milestone for Etihad Rail, the developer and operator of the UAE’s National Rail Network. Established in 2009, the company was tasked with delivering a roughly 900-kilometre railway linking key cities, ports and industrial hubs from Ghuwaifat to Fujairah on the eastern coast.

    The launch comes less than five years after the UAE announced its ambition to create a national passenger railway under the country’s “Projects of the 50” programme, which aims to support economic diversification and sustainable development.

    According to Etihad Rail, passenger services will be introduced in planned phases through 2026 and 2027:

    • 23 June 2026: Passenger tickets went on sale via the Etihad Rail app and a dedicated booking website (as well as the contact centre for certain fares)
    • 30 June 2026: Introductory operational phase begins with services between Abu Dhabi and Fujairah only
    • 30 September 2026: Passenger rail services formally commence and expand to include Abu Dhabi, Dubai, Al-Dhaid and Fujairah
    • 30 December 2026: Services extend to Al-Dhafra stations
    • 30 March 2027: Services expand further to include Sharjah

    Customers can book tickets up to four weeks before travel. Tickets for new destinations will be released in line with the phased roll-out.

    Once fully operational, Etihad Rail’s passenger service will connect 11 cities and regions across the UAE, supported by a station network that links key urban and economic centres. The station list includes:

    • Abu Dhabi – Mohamed Bin Zayed City Station
    • Dubai – Al-Yalayis Station
    • Sharjah – University City Station
    • Fujairah Station
    • Al-Dhaid Station
    • Al-Dhannah Station
    • Madinat Zayed Station
    • Liwa Station
    • Al-Mirfa Station
    • Al-Sila Station
    • Al-Faya Station

    For the initial Abu Dhabi–Fujairah service starting 30 June, Etihad Rail said fares will start from AED55 for Comfort class and AED120 for Premium class. The operator added that future fares and routes will be announced separately.

    The operator will offer two travel classes:

    • Comfort: guaranteed seating, Wi‑Fi, power at every seat and luggage space
    • Premium: wider reclining seats, extra legroom and complimentary refreshments

    Within each class, passengers can choose from three fare types based on flexibility:

    • Saver: lowest fare for fixed plans; available only via the app, booking website and contact centre
    • Value: includes complimentary seat selection and ticket changes
    • Flex: includes seat selection, ticket changes and refunds

    Etihad Rail said introductory fares are designed to encourage early uptake and will be available for a limited period, with pricing expected to transition “towards a more advanced fare structure and, ultimately, a broader fare framework” as the service matures.

    Etihad Rail’s passenger trains will have a maximum speed of 200km/h and, once fully operational, each train will carry up to 400 passengers, with an expected annual ridership of about 10 million.

    The journey times are as follows:

    • Abu Dhabi to Fujairah: 105 minutes
    • Abu Dhabi to Dubai: 57 minutes
    • Dubai to Fujairah: 69 minutes

    Train features include generous legroom, Wi‑Fi, power at every seat, foldable tray tables, overhead storage, space for larger baggage and accessibility provisions. Station features include clear signage, comfortable waiting areas, staff assistance, accessibility features and parking.

    Etihad Rail said the onboard experience is designed around “comfort and time well spent”, enabling passengers to work, relax or switch off in a “calm and spacious environment” with guaranteed seating, Wi‑Fi and charging points.

    Etihad Rail’s network currently supports freight operations across 11 terminals and four major ports, underpinning supply chain efficiency, emissions reduction and national connectivity.

    The company also pointed to the broader economic value of the UAE Railway Programme, stating that it creates opportunities worth AED200bn, while passenger rail is expected to generate around AED91bn in economic and social benefits over the next 50 years, driven by faster, safer and more efficient travel.

    Etihad Rail also differentiated the new passenger service from the UAE’s future high-speed rail plans, saying passenger rail is intended to connect more communities across the country with an affordable and comfortable service, while high-speed rail is being designed for “very fast journeys between central points of our major cities”, describing the two as “different products and services designed for different types of journeys”.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17448681/main.jpeg
    Yasir Iqbal
  • Firms prepare Hudayriat East PPP tunnels advisory bids

    25 June 2026

     

    Abu Dhabi’s Modon Infrastructure, formerly Gridora, has tendered a contract for technical advisory services for the construction of two underwater tunnels connecting the eastern side of Hudayriat Island with mainland Abu Dhabi.

    Consultants have until 26 June to submit their proposals.

    The project includes the construction of a 4.8-kilometre (km) highway, with four lanes in each direction, connecting Hudayriat Island to Mussafah 8th Street.

    The project will be delivered on a public-private partnership (PPP) basis in coordination with the Abu Dhabi Department of Municipalities and Transport and the Abu Dhabi Investment Office.

    The contract term is expected to be 25 years.

    The latest infrastructure development in Abu Dhabi follows Modon Infrastructure’s invitation in May for firms to register for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will also be developed on a PPP basis.

    Modon Infrastructure will act as the lead developer, holding the majority equity stake in the project company. It will award the engineering, procurement and construction contract, as well as the operations and maintenance services and advisory appointments.

    The second phase of the MIPP involves the construction of about 11km of highways, including a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also covers the construction of three interchanges: the E20, E10 and Dumbbell interchanges on Al-Sammaliyyah Island.

    The project includes several major structures, such as the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange with cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further key elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. The project will be completed with another tunnel connecting Bilrimaid Island to Um-Yifeenah Island.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17410214/main.jpg
    Yasir Iqbal
  • Algeria tenders upstream oil project contract

    25 June 2026

    Algeria’s state-owned national oil and gas company, Sonatrach, has tendered a contract for the development and rehabilitation of the central processing facility (CPF) at the Bir Berkine oil and gas field.

    The scope of the contract includes the study, supply, construction and commissioning of a project to rehabilitate the CPF facilities at the field, which is located in the Hassi Mesaoud region.

    Sonatrach says in the tender documents that the objective of the project is to ensure the continuity of production activities “under stable and secure operating conditions”.

    It also says the project aims to improve production yields and quality.

    The contract includes both initial and detailed studies as well as the supply of all equipment and materials.

    It also includes the execution of works, the assembly of all equipment and materials, and the commissioning of all relevant facilities.

    The tender has a two-stage submission process, with the first stage requiring technical bids to be submitted by 23 August.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17423013/main3916.jpg
    Wil Crisp
  • Red Sea Global tenders King Salman Bay construction work

    25 June 2026

     

    Saudi gigaproject developer Red Sea Global (RSG) has tendered a contract inviting firms to undertake marine infrastructure works at King Salman Bay on the Red Sea coast, north of Jeddah.

    The scope includes dredging and earthworks, as well as quay wall and edge protection works spanning about 11 kilometres.

    The bid submission deadline is 31 July.

    King Salman Bay is expected to be a waterfront development aimed at reshaping the city’s northern Red Sea frontage into a mixed-use destination, anchored by public-realm improvements and leisure-led development.

    The update follows RSG’s award of an estimated SR100m ($27m) contract to construct a solid waste management centre at its Red Sea Project. The scope includes four buildings: a material recycling facility, a transfer station, an administration building and a vehicle maintenance building.

    In October last year, MEED reported that RSG had secured a SR6.5bn ($1.7bn) credit facility to further develop Amaala, its luxury tourism destination on Saudi Arabia’s northwestern Red Sea coast.

    According to an official statement, “The funding is led by Riyad Bank as the sole underwriter, along with Saudi Investment Bank and Bank Al-Bilad as mandated lead arrangers.

    “The loan arrangement comprises a mix of conventional and Islamic financing and adheres to RSG’s Green Loan Framework, which was first established when it secured private funding from a consortium of four banks for the Red Sea destination in 2021,” the statement added.

    The announcement followed RSG’s opening of its first properties for sale at Amaala, including branded residential communities and a five-bedroom villa on a private island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17430045/main.jpg
    Yasir Iqbal
  • MECC submits lowest bid on three Kuwaiti oil and gas contracts

    25 June 2026

     

    Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid across three separate contracts tendered by the state-owned upstream operator Kuwait Oil Company (KOC).

    The total value of the low bids is $427m, and all of the contracts are focused on developing substations to power industrial lift pumps and remote header manifolds

    Five companies submitted bids for a contract to develop several substations to power industrial lift pumps and remote header manifolds in areas 6, 10 and 12 in southern and eastern Kuwait.

    The bidders were:

    • MECC: KD65,760,000 ($212m)
    • Heavy Engineering Industries & Shipbuilding Company: KD70,630,000 ($228m)
    • Amco Engineering & Construction: KD73,446,100 ($237m)
    • Combined Group Contracting Company: KD76,186,000 ($246m)
    • Nasser Mohammed Al-Badah & Partner General Trading & Contracting: KD79,332,417 ($256m)

    Six companies submitted bids for a contract to develop several substations to power industrial lift pumps and remote header manifolds in areas 8 and 13 in southern and eastern Kuwait.

    The bidders were:

    • MECC: KD30,760,000 ($99m)
    • Badr Al-Mulla & Brothers: KD32,662,040 ($106m)
    • Heavy Engineering Industries & Shipbuilding Company: KD34,139,000 ($110m)
    • Industrial Company for Electrical Projects: KD36,375,520 ($118m)
    • Nasser Mohammed Al-Badah & Partner General Trading & Contracting: KD37,278,526 ($120m)
    • Combined Group Contracting Company: KD37,790,000 ($122m)

    Eight companies submitted bids for a contract focused on developing several substations to power industrial lift pumps and remote header manifolds in areas 7, 9, and 11 in southern and eastern Kuwait.

    The bidders were:

    • MECC: KD35,760,000 ($116m)
    • Badr Al-Mulla & Brothers: KD39,447,165 ($127m)
    • Amco Engineering & Construction: KD39,736,800 ($128m)
    • Heavy Engineering Industries & Shipbuilding Company: KD40,105,000 ($130m)
    • Industrial Company for Electrical Projects: KD43,238,265 ($140m)
    • Engineering Company for Petroleum & Chemical Industries (Enppi): KD43,514,805 ($141m)
    • Combined Group Contracting Company: KD43,650,000 ($141m)
    • Nasser Mohammed Al-Badah & Partner General Trading & Contracting: KD43,706,826 ($141m)

    Kuwait’s oil and gas sector has been in crisis in recent months due to disruption from the regional conflict that started after the US and Israel attacked Iran on 28 February 2026.

    A preliminary peace agreement between the US and Iran, which was announced on 14 June, has increased optimism that disruption to the sector will decrease in the coming weeks.

    Under the terms of the agreement, both sides have stated that the free flow of vessels will be permitted through the Strait of Hormuz, through which nearly all of Kuwait’s crude oil is normally exported.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17423009/main.jpg
    Wil Crisp