GCC Railway project gains steam

Following delays, the long-awaited GCC Railway looks likely to be revitalised – a move that could transform trade and connectivity across the Gulf. The project was given a significant boost in December 2021 when leaders of the six GCC countries approved the establishment of the GCC Railways Authority, the body that is expected to oversee the ongoing coordination of the project. The decision marks a potentially significant development for rail infrastructure throughout the Gulf.

After being debated for decades, the GCC Railway project was initially approved by all six members states in 2009. However, fiscal pressures delayed plans. These were associated with the oil price drop of 2014 and, more recently, the Covid-19 pandemic and diplomatic tensions, which resulted in an economic blockade of Qatar by some of its regional counterparts from 2017 to 2021. The proposed project aims to connect all six GCC countries via a 2177-km railway. Starting in Kuwait City in the north, the rail line will pass through the coastal cities of Jubail and Dammam in Saudi Arabia before heading through Manama, Bahrain’s capital, and Doha, the capital of Qatar. The line would then cut back into Saudi Arabia before moving to the UAE, where it would pass through Abu Dhabi, Dubai and Fujairah before reaching its terminal station in Muscat, Oman.

Hopes of a resumption of the project were given a further boost in February 2022, when Qatari media reported that construction of the section connecting Qatar and Saudi Arabia would soon commence, with foundational groundwork such as engineering designs and a work plan already done. This followed regional media reports in December 2021 that officials anticipated the railway would be operational by 2025.

Connectivity & Trade

The development of the GCC Railway would significantly improve regional connectivity by reducing transport times and costs between major Gulf cities and ports, improving overall trade flows across the bloc, and attracting greater levels of both regional and international investment.

Business figures have noted that shorter travel times could help bolster tourism and entertainment – areas a number of Gulf countries are looking to grow in line with wider diversification efforts. For example, as part of Vision 2030, Saudi Arabia hopes to increase tourism’s GDP contribution to more than 10% and scale up visitor numbers to 100m per year, up from 20.3m in 2019.

The construction of a GCC-wide railway also bodes well for regional collaboration, and would support plans for greater economic alignment within the bloc. The GCC has sought to accelerate the creation of a joint Customs union and common market ahead of the ultimate goal of establishing economic unity within the region.

National Efforts

The development of a GCC Railway ties in with national efforts to expand transport infrastructure. Amid plans to reduce emissions and boost connectivity, rail is seen as key to the future of transport. For example, despite already having the region’s most extensive network, comprising 5000 km of track, Saudi Arabia has maintained a commitment to ongoing updates. In March 2022 the fifth and final passenger stop on the Northern Train Network – Al Qurayyat Passenger Railway Station, located near the Jordanian border – opened to the public. The upgrade allows passengers to travel the 1215-km stretch from the northernmost regions to Riyadh in roughly 12 hours.

Elsewhere in the region, there is hope that the revitalisation of the GCC Railway will reignite other dormant domestic rail plans. For example, the government of Oman has long planned the construction of its rail network, a proposed 2100-km link starting at the UAE border and passing through Sohar and Muscat in the north before linking up with the key port towns of Duqm and Salalah on the east coast. While tenders were issued in 2013, the project was suspended in 2016 amid fiscal challenges associated with a drop in oil prices. However, in recent years some progress has been made in terms of railway infrastructure, leading to hopes that the national project will be revived.