Saudi Arabia Launches Ambitious Regional Transport Projects to Boost Connectivity

Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 
Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 
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Saudi Arabia Launches Ambitious Regional Transport Projects to Boost Connectivity

Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 
Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 

The second edition of the Saudi International Rail Exhibition and Conference has emerged as a key platform for unveiling an ambitious roadmap for both domestic expansion and regional collaboration in the transport sector. Over two days, the event gathered government officials, industry leaders, and experts from around the world to exchange insights and showcase the latest innovations in railway technology.

Saudi Minister of Transport and Logistics and Chairman of the Saudi Railway Company (SAR), Saleh bin Nasser Al-Jasser, announced that the Kingdom’s railway network now stretches over 6,000 kilometers, with further expansion planned to cover new regions in the coming years. He revealed ongoing cooperation with eight neighboring countries on joint projects to enhance land and economic connectivity, noting that the Gulf Railway Project stands as a prime example of such partnerships.

Al-Jasser emphasized that rail transport has become a cornerstone of national development, facilitating trade, expanding sustainable mobility, supporting the logistics sector, and improving road safety. He noted that SAR achieved record numbers last year, transporting more than 13 million passengers and over 28 million tons of freight and minerals across its four networks.

The minister highlighted a series of major agreements signed last year, including the purchase of 10 new trains and the launch of the region’s first luxury desert tourism service, the “Desert Train.” He also announced the Qiddiya High-Speed Rail project, a line linking King Salman International Airport, King Abdullah Financial District (KAFD), and Qiddiya City. Operating at speeds of up to 250 km/h, the train will cut travel time to 30 minutes, strengthening Riyadh’s urban mobility and regional links.

SAR CEO Dr. Bashar bin Khalid AlMalik noted that the global rail industry is expanding rapidly, with G20 countries operating over 900,000 kilometers of track, including more than 33,000 kilometers of high-speed rail. Annual global investment in rail infrastructure and operations now exceeds two trillion riyals, he added, highlighting the importance of private-sector participation alongside governments.

Saudi Arabia’s rail network exceeds 5,500 kilometers - roughly the distance from Riyadh to Madrid - underlining its strategic location linking three continents. SAR’s operations have saved over 113 million liters of fuel and reduced millions of tons of emissions, supporting the Saudi Green Initiative. By 2035, the company aims to increase freight volumes fivefold and quadruple passenger numbers.

During the ministerial session, transport ministers from Saudi Arabia, Bahrain, Jordan, and Syria stressed the strategic role of railways in driving economic growth and fostering regional integration. Al-Jasser said that 50% of the government’s transportation strategy budget is allocated to rail, and that cooperation with Gulf states aims to unify technical standards, infrastructure design, signaling systems, and operational safety. This has already led to the creation of the GCC Railway Authority.

Al-Jasser added that Saudi Arabia is working bilaterally and multilaterally with eight neighboring states to integrate networks, with projects like the India–Middle East–Europe Economic Corridor (IMEC) showcasing successful international cooperation.

Bahraini Transport Minister Sheikh Abdullah Al-Khalifa underscored the importance of the 1986 land link between Bahrain and Saudi Arabia for his country’s economy. For his part, Jordanian Transport Minister Dr. Nidal Al-Qatamin praised Saudi Arabia’s rapid rail progress under Vision 2030, noting the opportunity to connect to the Kingdom’s network at the Jordanian border.

On the sidelines of the event, Meto Trajkovski, Managing Director and Partner at Boston Consulting Group, stated that developing Gulf rail networks will not only benefit Saudi Arabia but also boost neighboring economies, positioning the region as a land bridge between Asia and Europe. He noted that rail lines have been critical to the Kingdom’s mining sector and that public–private partnerships will be essential to sustain growth in this capital-intensive industry.

 

 



Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
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Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)

The war in the Middle East has boosted demand to move vital cargo through the Panama Canal to such an extent that one vessel carrying liquefied natural gas (LNG) paid $4 million to skip the line and avoid a wait that can take up to five days, according to an official report.

A surge in such payments has been recorded since the US-Israeli attacks on Iran began February 28, which led to the blockade of the Strait of Hormuz, a critical waterway for one-fifth of the world's oil and natural gas exports from Gulf countries.

To meet fuel demand, Asia's refineries are choosing to buy oil or gas from the United States and ship it through the transoceanic waterway instead of purchasing from Gulf countries who rely on the Strait of Hormuz, according to reports from the Panama Canal Authority.

The average number of ships passing through the canal on a daily basis has "remained strong," the authority told AFP in a statement Tuesday, with 34 ships in January and 37 ships in March. Some days exceeded 40 transits.

"The increase reflects changes in global trade patterns and market conditions, including geopolitical factors affecting key routes," the authority said.

Ships transiting the canal book their passage well in advance, and ships without bookings wait an average of five days to get through, but there is an auction where last-minute transits can be purchased.

The most recent auction included a $4 million bid for an LNG vessel, and in recent weeks two oil tankers exceeded bids of $3 million, the authority said.

Past average auction prices between October and February stood at around $130,000, and rose to $385,000 in March and April.

Five percent of global maritime trade passes through the Panama Canal, and its main users are the US and China. The route primarily connects the US East Coast with China, South Korea and Japan.

In the first half of the 2026 fiscal year, which runs October to September, the Panamanian waterway recorded passage of 6,288 ships, a year-on-year increase of 3.7 percent, according to official figures.


UK Inflation Jumps in March as Middle East War Propels Energy Prices

Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)
Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)
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UK Inflation Jumps in March as Middle East War Propels Energy Prices

Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)
Vehicles pass a petrol station as they make their way down the A3 during the morning rush hour near Ripley, south-west of London on April 22, 2026. (AFP)

Britain's annual inflation rate jumped to 3.3 percent in March as the Middle East war sent oil and gas prices surging, official data showed Wednesday.

The Consumer Prices Index (CPI) increased from 3.0 percent in the 12 months to February, the Office for National Statistics said in a statement.

"Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years," Grant Fitzner, chief economist at the ONS, said in a statement.

Finance minister Rachel Reeves reiterated the Labour government's opposition to a conflict that has increased the cost of living for millions of Britons.

"This is not our war, but it is pushing up bills for families and businesses. That's why it's my number one priority to keep costs down," Reeves said in a statement.

At 3.3 percent, the latest UK inflation figure matches the March print for the United States. But the pace of the CPI increase in the world's biggest economy was far sharper, having stood at 2.4 percent in February.

Britain's inflation rate is also much larger than in the eurozone, where annual inflation rose to 2.6 percent in March from 1.9 percent in February.

The US-Iran war began on February 28, sending energy prices rocketing.

They have since pulled back on a ceasefire that US President Donald Trump extended Tuesday. But oil and gas prices remain far above their pre-war levels as Gulf supplies remain largely blocked from transiting the Strait of Hormuz.


Pakistan Receives Additional $1 Billion from Saudi Arabia Under $3 Billion Package

The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)
The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)
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Pakistan Receives Additional $1 Billion from Saudi Arabia Under $3 Billion Package

The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)
The State Bank of Pakistan logo is seen at a reception desk at its headquarters in Karachi (Reuters)

Pakistan’s central bank said Tuesday it had received $1 billion from Saudi Arabia’s finance ministry as a second tranche of a recently agreed $3 billion deposit package between the two countries.

In a post on its official X account, the State Bank of Pakistan said the funds were credited on April 20, 2026. The transfer comes just days after Islamabad received a first tranche of $2 billion, which was deposited on April 15.

With this latest payment, Saudi Arabia has completed the full transfer of the agreed $3 billion support in a short period, providing immediate liquidity that strengthens Pakistan’s monetary policy flexibility.

Ongoing Saudi support

The inflow caps a week of major Saudi financial moves aimed at supporting Pakistan’s economic stability and easing balance-of-payments pressures. In addition to the new $3 billion package, Riyadh last week renewed an existing $5 billion deposit held at the State Bank of Pakistan.

Analysts say the combination of rolling over existing deposits and injecting new funds lifts total Saudi deposits at the central bank, directly bolstering foreign exchange reserves and giving Islamabad a stronger footing in ongoing negotiations with international financial institutions.

Impact on Pakistan’s economy

Saudi support is seen as a key pillar of Pakistan’s efforts to restore macroeconomic stability. The funds are expected to help stabilize the rupee against the US dollar, improve the country’s financial position and its ability to meet external obligations, and provide a buffer against external shocks and high energy costs.

The financial measures underscore the depth of the strategic partnership between Riyadh and Islamabad, and reflect Saudi Arabia’s commitment to supporting Pakistan’s economic stability as part of its broader role in promoting regional and global financial stability.