The Middle East Transport

Etihad Airways, the UAE’s national airline, is pushing forward with an expansion policy that should prepare it to compete in the increasingly competitive regional aviation environment.

With passenger traffic on the rise and new routes earmarked for its flag carrier, Ras Al Khaimah (RAK) is strengthening its foothold in the regional aviation market despite facing tough competition from the other emirates.

Sharjah is seeking to position itself as a niche aviation connection centre, with the local budget airline expanding the number of routes it serves and specialist carriers focusing on potential in the upper end of the market. High costs and stiff competition, however, could pose a challenge to the emirate’s ambitions.

Plans are moving ahead for Kuwait’s country-wide metro system, which is hoped to address the growing issue of congestion and create a better environment for growth in commercial, business, industrial and residential markets.

Enhancing surface transport connectivity to neighbouring countries, the region and the rest of the world is a central priority for Bahrain. In addition to the development of internal transportation, the government has identified the importance of new road and rail links to Saudi Arabia and Qatar to strengthen the country’s trade position and support its economic diversification.

Should the Gulf of Hormuz be closed to shipping, Saudi Arabia has proposed that the Kingdom’s Red Sea ports could be utilised for freight trans-shipment. The recent rise in tension in the Gulf region is a result of Iran making a series of thinly veiled threats to close the strategic Strait of Hormuz in retaliation to a US-led tightening of sanctions against Tehran, including halting the country’s oil exports.