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
  • Iranian drones hit Kuwait International airport’s Terminal 1

    3 June 2026

    Kuwait International airport was struck by a fresh wave of hostile drone attacks on 3 June. The drones caused significant structural damage to Terminal 1 and wounded several individuals.

    Brigadier General Saud Abdulaziz Al-Otaibi, official spokesman for the Ministry of Defence, blamed the strikes on “criminal Iranian aggression”. He confirmed that the injured had been evacuated for medical care and stated that the armed forces remain in a state of complete readiness to secure the state.

    The incident is the third major drone strike on the hub in recent months. On 1 April, a drone strike hit fuel tanks managed by Kuwait Aviation Fuelling Company, sparking massive fires. On March 28, another multi-drone raid severely damaged the airport’s primary radar systems.

    The airport is being expanded with the construction of a new terminal, and works on the project are expected to be completed by 2027. It consists of three packages.

    These are:

    • Package 1: Main works – $4,329m
    • Package 2: Multistorey car park building, connection roads, bridges and landscaping works – $550m
    • Package 3: Aircraft parking, runways and service buildings – $950m

    Turkiye’s Limak Holding is executing the main works.

    The terminal building was designed by Foster+Partners and Gulf Consult.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17089683/main.gif
    Colin Foreman
  • Consortium signs PPA for Taweelah C power plant

    3 June 2026

    Emirates Water & Electricity Company (Ewec) has confirmed it has signed a power-purchase agreement (PPA) with a developer consortium for the Taweelah C independent power producer (IPP) project.

    The agreement, which will run through to 2050, was signed with Abu Dhabi National Energy Company (Taqa), Al-Jomaih Energy & Water Company (Saudi Arabia) and Sembcorp Industries (Singapore), the utility said in a statement.

    Taqa will own a 60% stake in the project, with the international consortium holding 40%. The ADX-listed company will also own 40% of the project’s operations and maintenance company, while the international consortium will own 60%.

    Last month, MEED exclusively revealed that the winning consortium had been selected for the project, with the PPA initially expected to be signed in mid-May.

    It is understood that China Energy Engineering Corporation (CEEC) will be the engineering, procurement and construction contractor.

    The combined-cycle gas turbine plant will have a capacity of about 2.5GW. It will be located at the Al-Taweelah power and desalination complex, about 50 kilometres northeast of Abu Dhabi city.

    Taweelah C is part of Ewec’s wider programme to support the UAE’s Net Zero by 2050 Strategic Initiative and the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

    Ewec plans to raise solar power capacity to 18GW and wind capacity to 2.6GW by 2035, while reducing the carbon intensity of its power generation by more than half compared with 2019.

    The Taweelah C IPP is now expected to start commercial operations in 2029. The facility had previously been scheduled to begin commercial operations in the fourth quarter of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17089163/main.jpg
    Mark Dowdall
  • Local contractor wins Oman water transmission contract

    3 June 2026

     

    Local contractor Al-Jesr United has won the main engineering, procurement and construction contract to reinforce Oman’s Sur water transmission system.

    The contract, awarded by state-owned utility Nama Water Services (NWS), forms part of a project to improve the reliability of potable water supply to Sur, a coastal city about 200 kilometres southeast of Muscat.

    The scheme, estimated to cost $80m, is designed to strengthen the network’s resilience during peak-demand periods and emergencies.

    The scope of work includes upgrading the pumps at the Sur DP Pump Station with variable frequency drive units and replacing ductile iron pipes and fittings within the facility. It also covers about 17km of new transmission pipelines.

    According to regional projects tracker MEED Projects, at least five local firms submitted commercial bids for the contract, which was tendered in August 2025.

    These include:

    • Al-Jesr United
    • Al-Rafaa Trading & Contracting
    • Gulf Petrochemical Services & Trading
    • Professionals Trading
    • Sarooj Construction Company

    In June 2024, NWS awarded a $1.3m contract for the project’s design and construction supervision to Muscat-headquartered Ibn Khaldun Almadaen Engineering Consultants.

    Sur is home to one of the sultanate’s key desalination plants, which supplies potable water to communities across eastern Oman. 

    The water transmission project will support network expansion in areas such as Al-Aigah and Ahiae, as the existing ductile iron pipeline serving Wilayat Sur is no longer sufficient to meet current and future demand.

    Construction is expected to start in the third quarter of 2026 and take about two years to complete.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17088454/main.jpg
    Mark Dowdall
  • Syria to tender gas plant contract

    3 June 2026

     

    Syria is preparing to tender a project to rehabilitate the Conoco gas plant in Deir ez-Zor province in the east of the country within the next 10 weeks, according to a document published by the US-Syria Business Council.

    The gas plant was reclaimed by Syria’s military during an offensive in January this year.

    It is Syria’s largest gas plant, but is severely damaged and cannot be operated in its current condition.

    Before the country’s civil war, it processed 13 million cubic metres of gas a day.

    The US-based companies ConocoPhillips and Novaterra signed a memorandum of understanding with the state-owned Syria Petroleum Company (SPC) to restore the facility in November last year.

    Syria is currently in the midst of a push to ramp up oil and gas production and establish itself as a regional energy hub.

    Earlier this year, Yousef Qiblawy, chief executive of SPC, said that his organisation was aiming to double national oil production before 2027 and boost output to 800,000 barrels a day by the end of 2029, not including offshore production.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17088320/main.jpg
    Wil Crisp
  • AD Ports enters South America with $835m Brazil deal

    3 June 2026

    Abu Dhabi-listed AD Ports Group has entered the South American market by agreeing to acquire a majority stake in Corredor Logística e Infraestrutura (CLI), Brazil’s leading independent agri-bulk port terminal operator, for an enterprise value of $835m.

    The transaction represents AD Ports’ largest acquisition to date, surpassing its $720m purchase of Spain’s Noatum in 2023, and its $510m purchase of a 51% stake in Dubai-based Global Feeder Shipping in early 2024.

    Under the terms of the agreement, AD Ports will acquire CLI from joint owners Macquarie Asset Management and IG4 Capital. CLI operates two major agri-bulk export terminals under long-term concessions: CLI Norte at the Port of Itaqui, which is 100% owned by CLI, and CLI Sul at the Port of Santos, which is 80% owned. In 2025, CLI handled 17 million tonnes of cargo, generating $178m in revenue and profits of $98m.

    The deal, expected to close in the second half of 2026, subject to regulatory approvals, aligns with AD Ports’ strategy to expand its agrifood vertical. The group has recently secured similar international assets, including a 30-year concession at Jordan’s Aqaba multipurpose port, a $30m investment in Kazakhstan’s Sarzha Grain Terminal, and a clean bulk facility development at Pakistan’s Karachi Port.

    The acquisition also reflects broader economic ties between the UAE and Brazil, where UAE investments total about $5bn. The UAE is currently negotiating a Comprehensive Economic Partnership Agreement (CEPA) with the Mercosur trading bloc, which includes Brazil.

    The major capital deployment follows a period of significant financial growth and international expansion for the Abu Dhabi operator, which is 75.42% owned by sovereign wealth fund ADQ. AD Ports reported record results for 2025, with revenue rising 20% year-on-year to AED20.77bn ($5.66bn) and net profit increasing 16% to AED2.07bn.

    According to its 2025 annual report, the group plans to invest AED2.45bn in port infrastructure development during 2026 alone, alongside AED1.3bn for liquefied petroleum gas and liquefied natural gas storage terminals between 2026 and 2028. To fund higher-return projects and optimise its balance sheet, AD Ports launched an asset monetisation programme in late 2025 targeting the recycling of AED4.6bn of capital.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17087945/main.jpg
    Colin Foreman