Saudi Arabia Tops GCC States in Railway Expenditure

The total value of planned railway investments in GCC stands at over $240 billion, with $130 billion worth of railway projects in pipeline in Saudi Arabia  — according to a report produced by Terrapinn Middle East, organizer of Middle East Rail 2017, in collaboration with leading construction projects tracker Ventures OnSite.

Saudi Arabia is the uncontested GCC leader when it comes to railway expenditure. As of January 2017, KSA had registered the highest rail construction project value of 50 per cent, followed by the UAE (18 per cent) and Qatar (17 per cent). The railway infrastructure spending market in KSA is expected to grow at a CAGR of 7.88% from 2016 to 2020. The Ministry of Transport would increase private sector contribution to developing and operating railways by 50%.

Middle East Rail 2017 will host a series of interactive sessions that have been designed to introduce both 2017 tenders and new innovative technologies being implemented to build and operate these futuristic networks.  Key projects expected to be awarded to contractors in KSA market in 2017 are Zulfi - Al Majmaah Passenger Railway, North South Rail - Waad Al Shimal - Turaif - Al Jouf (ST320), Makkah Mass Rail Transit (MMRT) - Makkah Metro. 

“Operators are looking to source new technologies, educate their staff on best practices and find the perfect partners for 2017. There are a number of obstacles facing new rail projects apart from project finance, such as operational structures, technological expertise and political dynamics of cross-border networks. We have tailored a program aligned with the growing needs of the industry, providing an unrivaled platform for key players to come together to learn, network and discover new opportunities,” said Jamie Hosie, event director of Middle East Rail 2017.

“KSA government has prioritised several projects such as Riyadh Metro to ensure they continue as planned. The recent announcement that the Saudi government will be consolidating the two public transport entities Saudi Railway Organization and Saudi Railway Company, under the Saudi Railway Company name will ensure

a unified vision for the Saudi Arabian national networks,” Jamie added.

According to the report, the Middle East, North Africa, Central Asia and South Asia hold the largest selection of freight and urban transport projects across the globe, with over US$642 billion worth of planned railway investments. The value of total GCC rail projects in pipeline stands at over US$240 billion, with US$69 billion worth of projects currently under construction.

Middle East Rail will be held in partnership with the Ministry of Infrastructure Development and the Federal Transport Authority — Land & Maritime on March 7 and 8 at Dubai International Convention Centre.

Over 350 world-class construction and engineering companies, contractors and solution providers, E2E’s and international operators, and rail experts will participate to offer their services and play their part in the systems of the future. The show will once again deliver an unprecedented conference, hosting over 200 speakers, who will discuss their experience and insights within the rail industry.

Below table represents the top rail projects in KSA: