A new agreement signed in Bahrain on November 8 has brought the GCC's long-planned railway project a step closer to becoming an integrated regional transportation network. The agreement covers Saudi Arabia, the UAE, Oman, Qatar, Bahrain and Kuwait, establishing a common framework for railway operations across the six countries. The development also comes amid prolonged shipping difficulties in the Strait of Hormuz, which have continued to complicate the transportation of imported steel products, raw materials and other industrial cargo to Gulf markets, highlighting the importance of alternative logistics routes.
According to local media reports, the planned railway network will extend approximately 2,117 km, connecting major ports, industrial centres and commercial markets across the region. Earlier estimates placed the project's core infrastructure cost at $15.4-16 billion, although this figure is being reassessed due to higher construction material and service costs. Each participating country will remain responsible for financing and developing its own section, while the new agreement focuses on coordinating technical standards, safety requirements and operating procedures. Originally approved in 2009, the project has reportedly reached a completion rate of 55.9 percent, with full operations targeted for December 2030.
Meanwhile, progress is already being made on some cross-border connections, including the 238-km Hafeet Rail project linking the UAE and Oman, valued at approximately $2.5 billion. Once completed, the wider GCC railway network is expected to strengthen trade connections between the six countries by facilitating the transportation of goods between major ports, industrial centres and inland markets. The project could also offer additional freight options for the steel and construction sectors, supporting the movement of finished steel products, raw materials and other bulk cargo across the region, while reducing reliance on road transportation for certain shipments.
