UAE-Qatar causeway could face a geopolitical challenge
15 April 2025
Commentary
Edward James
Head of content and analysis
Register for MEED’s 14-day trial access
The news that early construction bids have been submitted for a new road causeway and ferry linking the UAE and Qatar could have a geopolitical impact in addition to potentially transforming transportation networks in the region.
The multibillion-dollar West Link project, tendered by the UAE’s Etihad Rail, will link the two states directly, enabling for the first time freight and car traffic to bypass the land connection in Saudi Arabia dividing them.
However, it could well provoke a diplomatic response from Riyadh if recent history is a guide.
In 2006, Saudi Arabia protested and ultimately blocked the planned Dolphin Energy gas pipeline between Qatar and the UAE from passing what it claimed at the time was its territorial waters. In the end, the pipeline alignment had to be rerouted to avoid any potential encroachment.
Riyadh’s intervention made global headlines and came at a time of some tension between the kingdom and the UAE. The latter has never ratified the 1974 Treaty of Jeddah that formally disconnected the UAE’s land connection with Qatar. While there is general consensus on the land borders between Abu Dhabi and Riyadh, the offshore maritime border has never been delimited.
The Treaty of Jeddah stipulates that the two parties have joint sovereignty in the general maritime area between the two nations until formal demarcation could be agreed. It also gave the kingdom the right to construct ‘general installations’ on Al-Qaffay and Makasib islands, which lie within UAE territory, although it is not believed to have ever done so.
More recently, last year Riyadh deposited a note verbale at the UN affirming its rejection of a 2019 UAE Amiri Decree that expanded the Yasat marine reserve to encompass Al-Qaffay Island, stating that the kingdom “does not recognise any actions or practices taken by the Government of the United Arab Emirates in the maritime area off the coast of Saudi Arabia, including the territorial sea of the Kingdom of Saudi Arabia, the joint sovereign area between the two countries and the islands of Makaseb and Qafai”.
The new road causeway and ferry project will start on the UAE-Saudi border at Ras Ghumais and then run 40km in a northeast direction to Makasib, presumably also passing through Al-Qaffay. From there a ferry will take road traffic onto Qatar.
It is unclear what Riyadh’s position will be on the new connection, but given its diplomatic protest over the Yasat marine reserve, it is likely to want to have some say on its development. At the same time, it remains to be seen what impact the project will have on prospects for the long-planned GCC railway link between Saudi Arabia and the UAE, which has not seen much signs of progress despite the UAE side having completed its line to the Saudi border two years ago.
Regardless, the project will be seen as another step in the closer integration of transport links in the GCC, offering an increasing number of options for traffic to flow between the economic bloc.
READ THE APRIL 2025 MEED BUSINESS REVIEW – clck here to view PDF
Regional construction heads underground; Riyadh reaps both diplomatic and economic success; Luxury GCC hospitality projects drive tourism
Distributed to senior decision-makers in the region and around the world, the April 2025 edition of MEED Business Review includes:
|
> AGENDA 1: Traffic drives construction underground
> AGENDA 2: Muted public spending hinders global tunnelling
> TOURISM 1: Beaches and luxury drive regional tourism
> TOURISM 2: Region’s hotel projects pipeline balloons
> EDMOND DE ROTHSCHILD: Investing in Saudi Arabia’s infrastructure opportunities
> DATA CENTRES: GCC’s top five data centre projects
> SAUDI PPPs: Rise in PPPs reflects Saudi budgetary pragmatism
> SAUDI ARABIA REPORT: Riyadh enjoys buoyant fortunes
> GULF PROJECTS INDEX: Gulf index sees minor correction
> CONTRACT AWARDS: Project awards slump notably in February
> ECONOMIC DATA: Data drives regional projects
|
Exclusive from Meed
-
Jedco maps next phase of Jeddah airport expansion22 September 2026
-
Contractor wins $105m Medina university hospital deal22 September 2026
-
Oman tenders Thumrait Industrial City infrastructure22 September 2026
-
Kuwait halves drilling contractor pool22 September 2026
-
Abu Dhabi expects 45% emissions cut as electricity demand rises21 September 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Jedco maps next phase of Jeddah airport expansion22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.
The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.
The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.
The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.
Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.
The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.
T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.
The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.
Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.
In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.
Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.
Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).
These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19877992/main.jpg -
Contractor wins $105m Medina university hospital deal22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.
The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.
Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.
The contract duration is three years, with delivery targeted for late 2029.
The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.
The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.
Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.
Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19870032/main.jpg -
Oman tenders Thumrait Industrial City infrastructure22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.
The tender was issued on 14 September, with bids due by 12 November.
The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.
In addition, Madayn intends to build plug-and-play industrial units and a facilities building.
The first phase of the development will cover about 120,000 square metres (sq m).
Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.
The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.
In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.
According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.
The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.
Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19866218/main.jpg -
Kuwait halves drilling contractor pool22 September 2026

State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.
Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.
The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.
The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.
The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg -
Abu Dhabi expects 45% emissions cut as electricity demand rises21 September 2026
Register for MEED’s 14-day trial access
Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.
The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.
The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.
Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.
The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.
According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.
This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.
It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.
As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.
The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.
The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.
READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDFNuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.
Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19849749/main.jpg