(2 min read)
The rail sector in the GCC is experiencing rapid growth, marked by major projects such as the high-speed rail RFP between Qididya and Riyadh, a Saudi-Qatar treaty for a cross-border rail link, and the imminent launch of Etihad Rail’s passenger services in the UAE. Projects span various models, including PPPs (e.g., Hafeet Rail), government-funded schemes (Saudi Landbridge), and joint ventures (Etihad Rail with Deutsche Bahn). Urban transit is also expanding, with Dubai and Riyadh extending metro lines and new projects in Abu Dhabi and Jeddah. This surge creates significant opportunities for private sector involvement. As cities face congestion and environmental challenges, investment in public and heavy rail is increasingly vital for sustainable passenger and freight movement across the region.
The rail sector in the GCC is undergoing significant expansion with recent developments including the launch of the RFP for the high-speed rail line between Qididya and Riyadh in Saudi Arabia, the Governments of Saudi Arabia and Qatar signing a treaty for the development of a rail link between the two countries and the upcoming launch of passenger services in the UAE by Etihad Rail.
Rail projects in the GCC take a number of different forms with:
- PPP projects such as the Hafeet Rail project linking Oman and the UAE
- Government funded projects like the Saudi Landbridge project and;
- Joint ventures (for example, the original Etihad Rail JV with Deutsche Bahn).
Growth is not solely focussed on heavy rail, the Dubai metro system is also undergoing significant expansion, Riyadh is tendering metro line extensions and new tram and metro projects are being procured in cities like Abu Dhabi and Jeddah.
The number of projects currently underway means there is ample scope for private sector participants to deploy their expertise and the region is becoming a key target geography for transport providers, consultants and project financiers.
As many large cities in the GCC struggle with traffic congestion, air quality and increasing populations the need to develop public transportation systems will become more pressing and we envisage more investment being required. Similarly, heavy rail systems are an increasingly attractive method of moving passengers and freight around the region, thereby avoiding the cost and environmental impact of air travel and providing significantly more capacity than road-based freight.
