Gulf Cooperation Council (GCC) countries signed an agreement in Manama on Sunday to advance a 2,117-kilometer railway linking all six member states by 2030, as shipping disruptions in the Strait of Hormuz underscore the need to diversify trade and supply routes.
The agreement establishes a common framework for building and operating the network and integrating national transport systems, amid regional tensions that have disrupted cargo movements, raised shipping and insurance costs, and highlighted the importance of alternative routes.
The Gulf railway is intended to strengthen regional logistics rather than replace maritime transport, which remains essential to Gulf and international trade.
The signing ceremony was held under the patronage and in the presence of Bahrain’s Crown Prince and Prime Minister Prince Salman bin Hamad Al Khalifa, with GCC transport ministers and Secretary-General Jasem Mohamed Albudaiwi attending.
The planned network will connect Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Oman, with full operations targeted for December 2030.
The agreement sets out member states’ obligations, coordination mechanisms, technical and operational standards, and safety requirements to ensure compatibility with national railway systems.
Bahrain’s Minister of Transportation and Telecommunications, Dr. Sheikh Abdulla bin Ahmed Al Khalifa, told Asharq Al-Awsat that each country would finance and implement the section within its territory.
He explained that GCC states had not signed prior agreements with international partners to finance or execute the project, although global companies could provide expertise and technical and technological services according to national requirements.
Project 55.9% Complete
Albudaiwi announced that the Gulf railway project had reached 55.9% completion, describing the agreement as a framework governing member states’ commitment, implementation procedures and the timetable for bringing the network into service.
While full operations are scheduled for December 2030, cross-border connections between neighboring countries could open individually once the necessary infrastructure and operational requirements are met.
This would allow completed sections to enter service progressively rather than waiting for the entire 2,117-kilometer network to be finished.
Projections indicate that the railway will carry approximately 6 million passengers and 200 million tons of freight in 2030, rising to more than 8 million passengers and 271 million tons by 2045.
Passenger trains are expected to reach speeds of 200 kilometers per hour, while freight services will operate at 80 to 120 kilometers per hour.
The network will connect economic and industrial centers, ports and logistics hubs across the Gulf, facilitating trade and the movement of passengers and goods while creating investment and employment opportunities in transport and related services.
National Financing and Potential Partnerships
Earlier estimates put the cost of the project’s core infrastructure at between $15.4 billion and $16 billion.
The Bahraini minister explained that these figures were under review because of rising costs for construction materials, services and building works. No revised estimate for the overall project has been announced.
Although each country will fund its own section, private-sector participation remains possible in certain components, subject to economic and financial feasibility studies.
The minister added that potential partnerships would depend on the requirements of individual sections, with no single financing or implementation model envisaged for the entire network.
Bahrain’s connection to the Gulf railway depends on the proposed King Hamad Causeway, which would link the island kingdom to Saudi Arabia through a railway alongside a road connection.
The project would connect Bahrain’s international passenger terminal with the Saudi railway network, providing a direct link to the wider GCC system.
Bahrain currently relies on the King Fahd Causeway for road transport to Saudi Arabia. Studies and procedures concerning the proposed King Hamad Causeway, including its railway component, remain underway as part of efforts to complete the cross-border connection.
Shipping Disruptions Highlight Logistics Challenges
The agreement has taken on added significance following recent disruptions to regional shipping, particularly reduced vessel traffic at Bahrain’s Khalifa bin Salman Port, which has increased reliance on road transport and alternative ports in neighboring countries.
Albudaiwi praised Saudi Arabia, the UAE and Oman for their cooperation during the period of Iranian attacks, citing logistical facilities, coordination and alternative cargo routes that helped maintain supply chains to other GCC countries.
He stressed the need for greater integration among transport systems, more diversified supply routes and stronger preparedness and coordination to manage future crises.
The GCC’s transport and storage sector recorded real growth of 5.7% in 2025, making it one of the fastest-growing non-oil economic activities, he noted.
At the 19th consultative meeting of the GCC Supreme Council in Jeddah on April 28, 2026, Gulf leaders called for a study on strengthening logistics integration among member states as part of broader efforts to develop transport networks and diversify trade and supply routes.
Rail and Maritime Transport to Work Together
Despite the renewed focus on rail connectivity amid shipping disruptions, the project is designed to complement maritime transport rather than compete with it.
Rail services could move goods from ports to industrial centers and domestic markets while providing additional distribution routes between GCC countries. Ships would continue to carry the bulk of international freight over long distances.
Integrating the railway into wider international logistics corridors would require further studies, agreements and coordination among governments and relevant authorities, beyond completing the rail infrastructure within the GCC.
The network is also expected to stimulate intra-Gulf trade, improve connections between production and consumption centers, and attract investment in transportation, logistics and related industries.
Additional employment opportunities are anticipated in construction, operations, maintenance and supporting services.
From a 2009 Proposal to Regional Implementation
The Gulf railway initiative dates to December 2009, when the GCC Supreme Council approved plans for a network connecting member states to facilitate trade, improve mobility for citizens and residents, and strengthen regional economic integration.
In December 2021, the council approved the establishment of the GCC Railways Authority to coordinate national efforts, monitor connectivity and operational requirements, and provide an institutional framework for cooperation.
Implementation has since progressed across member states, with completion exceeding 50% by May 2026.
