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.

Exclusive from Meed
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Kuwait utilities investment shifts towards water11 August 2026
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Syrian court gives death penalty to Bashar Al-Assad11 August 2026
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Oman extends deadline for $150m water transmission project11 August 2026
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Medina invites bids for major stormwater project11 August 2026
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Adnoc Gas expects Habshan to hit full capacity in 202711 August 2026
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Kuwait utilities investment shifts towards water11 August 2026

China State Construction Engineering Corporation recently signed a contract for Kuwait’s North Kabd wastewater treatment plant, the country’s largest wastewater infrastructure project to date.
The award, following more than a decade of planning, propelled Kuwait’s water sector contract awards to more than $4bn as of early August, according to regional project tracker MEED Projects.
The facility will have a treatment capacity of up to 1 million cubic metres a day (cm/d), with the $3.3bn contract covering the design, construction, operation and maintenance of the plant over a 10-year period.
It marks a significant recovery for the sector after several years of subdued activity and the first time since 2020 that annual water awards have exceeded $1bn.
North Kabd is the largest of several major water projects awarded this year, alongside contracts covering desalination and the expansion and rehabilitation of water distribution infrastructure.
Desalination and distribution
These include a $316m contract awarded to local firm United Gulf Construction (UGC) by the Ministry of Electricity, Water & Renewable Energy (MEWRE) for the rehabilitation and expansion of the Doha water distribution complex.
The five-year project includes a new pump station and will add about 130 million imperial gallons of storage capacity, while increasing pumping capacity to 220 million imperial gallons a day (MIGD).
UGC was also selected in February to upgrade the Hawally water distribution complex in Kuwait’s Hawalli Governorate. The facility serves one of Kuwait’s most densely populated governorates, with the project intended to address chronic low water pressure, particularly during peak summer demand, and improve continuity of supply.
The upgrade will increase freshwater storage capacity by 66 million gallons and raise potable-water pumping capacity to 54.5 million gallons a day.
In April, Kuwait’s Central Agency for Public Tenders approved MEWRE’s recommendation to award a $371m contract for phase two of the Doha seawater reverse osmosis (SWRO) desalination plant.
A joint venture of Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco) and India’s VA Tech Wabag will carry out the project, which will have a capacity of about 272,000 cm/d.
Upcoming water awards
Meanwhile, Kuwait’s Ministry of Public Works (MPW) has been progressing several tenders for major water infrastructure projects covering rainwater drainage and treated water systems in the country’s southern and northern regions.
In July, local Combined Group Contracting submitted the lowest bid for a contract to develop a major treated water system in the southern region. The contractor submitted a price of about $515m for the scheme, according to a company disclosure.
For the smaller northern treated water system, Contractor General Trading & Contracting submitted the lowest bid of $169m.
In what is already a standout year for Kuwait’s water sector, further awards could push activity significantly higher. More than $1bn of water projects are currently under bid evaluation, indicating further evidence of a sustained recovery in the months ahead.
Power sector activity
Kuwait’s power sector recorded just $271m of contract awards by early August, according to MEED Projects, putting activity well below recent annual levels.
This compares with a record full-year total of $5.5bn in 2025 and $2.7bn in both 2024 and 2023.
Several large-scale generation projects have been slow to advance, with deadline extensions a notable feature in recent months. The outlook is stronger, however, with these projects now progressing through procurement and significant awards expected in the months ahead.
Kuwait is advancing the 1,800MW Al-Khairan phase one independent water and power project (IWPP), for which two developer consortiums led by Abu Dhabi National Energy Company (Taqa) and Saudi Arabia’s Acwa submitted bids in June.
The project will also include a desalination plant with a capacity of 125 MIGD. A second phase of the Al-Khairan IWPP, estimated at $750m, is understood to include a further 1,800MW of generation capacity through a combined-cycle gas-fired power plant. The project remains in the early development stages, with tendering not expected until at least 2027.
Renewable energy programme
The Kuwait Authority for Partnership Projects (Kapp) is also progressing the Al-Dibdibah power and Al-Shagaya renewable energy programme in partnership with Kuwait’s MEWRE.
The contract to develop the 1,100MW phase three, zone one solar photovoltaic (PV) project is expected to be confirmed soon, with a consortium led by Abu Dhabi Future Energy Company (Masdar) previously reported to be the frontrunner.
A separate 500MW solar PV project is also being procured under phase three, zone two of the same programme, with bids submitted on 26 July. If the contract is awarded by the end of the year, the two Shagaya contracts would add about $2bn to the value of power sector awards.
Another notable development was the 25-year energy conversion and water purchase agreement signed in February for the Al-Zour North IWPP phases two and three. The signing marked a key step towards financial close on the estimated $4bn project. Once completed, the facility will add 2,700MW of power and 120 MIGD of desalinated water to Kuwait’s supply network
The Shagaya, Khairan and Zour North projects form a key part of Kuwait’s generation portfolio. The country is aiming to reach 22,100MW of installed renewable energy capacity by 2030, under a 20-year strategy announced in March 2025 that extends to 2050.
Kuwait is also continuing to invest in existing generation plants. MEWRE is evaluating bids for the $1.7bn upgrade of the Subiya power and water plant, including the conversion of units from open-cycle to combined-cycle operation and the modernisation of existing facilities.
Battery energy storage systems
In the near to medium term, more than $10bn-worth of power projects are under bid evaluation. This includes several battery energy storage system projects with a planned total storage capacity of 1.5GW.
In June, Kuwait approved sites in Al-Mutlaa and Jaber Al-Ahmad cities for the development of the projects. The projects will be implemented in phases, with the first phase providing 500MW of storage capacity. The first facilities are expected to be operational by summer 2027 and will supply stored energy to the electricity grid during periods of peak demand.
Elsewhere, MEWRE continues to evaluate offers from Shanghai Electric Group and local firm Heavy Engineering Industries & Shipbuilding Company (Heisco) for the estimated $400m engineering, procurement and construction contract to rehabilitate and modernise eight boilers at the Subiya power generation and water distillation station. The bid bond validity has been extended to 23 August, indicating that the procurement process remains ongoing.
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> ECONOMY: Kuwait shows tentative signs of economic development
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Syrian court gives death penalty to Bashar Al-Assad11 August 2026
A Syrian court has sentenced former president Bashar Al-Assad to death after trying him in absentia, convicting him of crimes committed during the country’s nearly 14 years of civil war.
It is the first such ruling under Syria’s transitional authorities, who ousted Al-Assad in December 2024 and vowed justice and accountability for crimes committed under his rule.
Al-Assad fled to Moscow as Islamist-led forces closed in on Damascus after a lightning offensive.
In a Damascus court, Judge Fakhr Al-Din Al-Aryan convicted Al-Assad of crimes including “premeditated murder, the intentional killing of more than one person, the intentional killing of children under 15 years … torture, torture leading to death, and deprivation of liberty on multiple occasions” — acts the court classified as crimes against humanity and war crimes.
“He is therefore sentenced to death,” the judge said in his ruling.
The court also sentenced six former military and security officials to death in absentia, including Al-Assad’s brother Maher, who ran the army’s elite Fourth Division and also fled the country.
Those convicted included former defence minister Fahd Al-Freij and Louay Al-Ali, who headed military intelligence in Daraa province in 2011.
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The officials were convicted of crimes including murder, incitement to murder, torture leading to death and repeated deprivation of liberty, also classified as crimes against humanity and war crimes.
Former security official Atif Najib – the only defendant tried in person – was also sentenced to death for crimes against humanity committed while he headed political security in Daraa province, the cradle of the country’s 2011 uprising.
Najib, a cousin of Al-Assad who was arrested in January last year, was convicted of crimes including murder, the intentional killing of children under 15 and torture leading to death.
The acts attributed to him are “crimes against humanity”, the court said as it handed down “the harshest punishment … which is the death penalty”.
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Syria began proceedings in April against Al-Assad and other officials, accused both in person and in absentia of atrocities during the civil war, which erupted after the former authorities’ brutal repression of pro-democracy protesters.
More than half a million people were killed and millions displaced, while tens of thousands disappeared, many into the country’s brutal prison system.
The uprising began in Daraa in March 2011 after 15 students were arrested for allegedly writing anti-government slogans on the city’s walls.
Residents said the students were tortured, prompting protests demanding their release that ended in bloodshed.
Security forces suppressed demonstrations and fired live ammunition to disperse sit-ins at several locations.
Najib was dismissed after the crackdown as protests spread to other provinces.
Judge Al-Aryan said Najib had denied the charges and shown “no remorse”.
Al-Assad took power in Syria in 2000 in an unopposed election following the death of his father, Hafez Al-Assad, who was president from 1971.
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Oman extends deadline for $150m water transmission project11 August 2026

State-owned Nama Water Services (NWS) has extended the bid submission deadline for a contract to build a $150m water distribution network project in Jalan Bani Bu Ali Wilayat in Oman’s South Sharqiyah Governorate.
The new deadline is 24 August. The original deadline was 17 August.
The engineering, procurement and construction (EPC) contract covers the development of water distribution infrastructure in the JBBA North and JBBA Coastal areas.
The scope includes new water storage reservoirs, elevated tanks, booster pump stations and transmission and distribution pipelines.
The project includes two reservoirs in the JBBA North area with a capacity of 40,000 cubic metres, along with about 58 kilometres of ductile iron distribution pipelines and 343km of high-density polyethylene (HDPE) pipelines.
The JBBA Coastal works include reservoirs at Asilah, Ashkarah, Wadi Sal and Khabbah, as well as elevated tanks and pump stations. The scope also includes about 38.5km of 400mm-diameter ductile iron transmission pipeline.
NWS issued the main contract tender on 4 June. UK-headquartered Mott MacDonald is the main consultant on the project.
The project is one of three water distribution schemes being tendered under a wider $350m masterplan covering Jalan Bani Bu Hassan, Jalan Bani Bu Ali, and Al-Kamil and Al-Wafi wilayats.
The Jalan Bani Bu Hassan scheme includes a new 40,000-cubic-metre ground reservoir at Al-Sayah Al-Sharqi 4, a pump station and associated transmission and distribution pipelines. It will also include a pump station serving the Industrial Area and an inline booster pump station supplying Al-Mintajjah and Sariq Haryah.
The projects covering Jalan Bani Bu Ali and Al-Kamil and Al-Wafi wilayats are estimated to cost £100m each. The bid submission deadline for both projects is 17 August.
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> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18326851/main.jpg -
Medina invites bids for major stormwater project11 August 2026

Saudi Arabia’s Madinah Municipality has issued a tender for an engineering, procurement and construction (EPC) contract to upgrade the city’s rainwater drainage network.
According to regional project tracker MEED Projects, it is the first main contract tender the municipality has issued for a major water infrastructure project since 2022.
The $30m project covers the construction of rainwater drainage networks and the repair of existing stormwater pipelines across major roads and corridors within the urban area of Medina.
It aims to improve the performance of the city’s stormwater drainage system, reduce surface flooding, and protect roads and nearby assets during heavy rainfall.
The bid submission deadline is 5 September.
According to MEED Projects data, Madinah Municipality completed two rainwater drainage network projects in Medina in 2024.
The local Al-Ayuni Investment & Contracting was the EPC contractor for both Phase 1 and Phase 2 projects. Saudi contractor Azmeel Contracting also previously submitted bids for both projects.
The municipality is also understood to be nearing completion of a separate Phase 1 rainwater drainage network project in Al-Rawabi in Al-Madinah province. This project was tendered in 2022 and awarded to Al-Naeim Contracting (Saudi Arabia) in 2023.
Meanwhile, Madinah Municipality received prequalification documents at the beginning of the year for two stormwater drainage projects in Yanbu. It is unclear if the main contract tender will be issued this year.
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Adnoc Gas expects Habshan to hit full capacity in 202711 August 2026
Adnoc Gas hopes to restore full output capacity at its Habshan gas processing facility in Abu Dhabi by the second quarter of next year, following attacks on the facility in March and April during the US-Iran conflict.
Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), said it has already restored 85% of the Habshan facility’s capacity, surpassing the year-end target set in May.
The Habshan complex is one of the largest gas processing facilities in the UAE and the wider Middle East and North Africa region. It has a processing capacity of 6.1 billion cubic feet a day. The complex comprises five trains and 14 processing units that receive gas feedstock from onshore and offshore fields in Abu Dhabi.
The Habshan facility was struck at least three times in March and April by Iranian drones and missiles. On 19 March, UAE authorities suspended operations at Habshan after it was affected by debris falling from Iranian missiles intercepted by the country’s air defence systems.
Adnoc Gas then announced on 23 March that operations were continuing safely across its asset base, after similar missile and drone attacks by Iran on facilities owned by its parent, Adnoc Group, although it did not specifically mention the Habshan plant.
The worst of the attacks on Habshan took place on 3 April, when Iranian drones intercepted by the UAE’s air defence systems caused damage at the site, resulting in the death of an engineer working at the facility for Egyptian contractor Petrojet during an evacuation. Four other contractors sustained minor injuries, but were later discharged from hospital after receiving treatment.
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On 8 April, Abu Dhabi authorities said three people – two Emiratis and an Indian national – sustained minor injuries after debris fell at the Habshan gas complex following a successful interception by the UAE’s air defence systems.
The debris also sparked several fires at the facility, prompting a temporary suspension of operations as safety and response teams assessed the situation.
“Adnoc Gas responded swiftly to the security-related incidents at the Habshan site on 3 and 8 April, prioritising safety and minimising disruptions to customers,” the company said on 10 August.
“The company has concluded its technical assessment of the impact from these incidents and recovery has progressed ahead of schedule, with gas supply already restored to 85%,” Adnoc Gas said as part of its announcement of financial results for the second quarter of 2026.
During a press conference to discuss Adnoc Gas’ Q2 2026 results, Peter Van Driel, the company’s chief financial officer, said: “At the moment, we have progressed to 85% of supply being reinstated, so the balance will be reinstated between now and the first half of 2027.
“If I look at the cost impact, we are still firming up our estimates. There are uncertainties around the pricing of certain items that we need to install as part of the final reinstatement.
“If we look at the key driver for our results in the second half, the 85% reinstatement of supply is definitely important. We’re encouraged by the fact that the 85% was delivered ahead of schedule,” Van Driel told journalists.
Fatema Al-Nuaimi, Adnoc Gas’ CEO and board member, said: “If I may add one point: it might be 85%, but in reality, today we are supplying 100% of our customers’ requirements locally.”
She added: “On exports, of course, we try our best to satisfy requirements and work closely with customers. But in terms of gas supply to the UAE, we are at 100%.”
Role of robotics and AI
Responding to a question about the deployment of robotics and artificial intelligence (AI) to carry out damage assessment and repair work at the Habshan gas processing facility, Al-Nuaimi said: “One of the technical challenges in restoring the facilities quickly was that we had to inspect a significant part of our assets – some 600 kilometres of piping of different sizes across the facilities.
“If we had done this in the conventional way, we would have spent around 100 additional days putting up scaffolding and sending people to conduct manual and visual inspections.”
The CEO continued: “Instead, we used robotics supported by AI-driven software, which enabled us to shorten the inspection and response time and carry out repairs faster.
“It was not just about time; it was also about safety. It spared us from sending our people into critical areas that might not yet have been safe.”
She added: “We also used robotics in responding to fires and accessing certain parts of the assets.
“When we talk about AI, it is not a headline. It is real work and real value that we see every day in our business,” Al-Nuaimi further remarked.
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