Holland Gulf Chamber of Commerce » Infrastructure

Foreign and local firms line up for Makkah Metro deals

jochemgeheniau — Thu, 30 Jan 2014 10:06:01 +0000

Several alliances of local and international companies have started submitting prequalification applications to join the bidding process for the Makkah Metro service project.
“Fifteen national and multinational consortia have submitted their eligibility documents to be qualified for bidding for the civil works of the Phase 1 of the Makkah Metro project,” said Makkah Mayor Osama Al-Barr who is also chairman of the executive committee of the city’s public transport system.
The Development Authority for Makkah and Holy Sites received applications for prequalification for bidding.
The announcement about procedures were made on Nov.10 last year.
The first phase of the project comprises two lines (Green and Red lines) of 46 km with 22 stations.
While 60 percent of the lines will be hanging on elevated bridges, the rest of the lines will run through tunnels.
While the quotations will be invited in the first quarter of the year, contracts are expected to be signed in the last quarter of the current year, he said.
Saad Al-Qadi, executive president of the Makkah Trains Company for Public Transport and director general of the project, said the civil works have been divided into two contract packages with the aim of speedy completion of their works.
One package is for the underground lines of the ‘green category’ and part of the ‘red category’ while the other package covers the remaining ‘red category’ lines that run on hanging bridges.
The mass transit system in Makkah consists of four lines with a total length of 114 km and 62 stations in addition to a wide network of buses linking all districts with important areas.

UAE rail to link to GCC network

jochemgeheniau — Mon, 06 Jan 2014 10:10:26 +0000

Abu Dhabi: Completion of the UAE railway by 2018 can only bring more prosperity not only to the UAE but also the country’s five GCC neighbours as rail lines are constructed across the region, said Etihad Rail .

The UAE railway will connect with the sources of raw materials, industrial areas, ports and major population centres, says Etihad Rail , and will be built in three phases, the first of which will be a 266km-long western stretch between Al Ruwais and Shah. The Shah-Habshan-Ruwais freight line is being built in collaboration with Abu Dhabi National Oil Company (Adnoc).

The 2,177-km-long GCC rail network, which will link all six Gulf states by rail for the first time — providing an alternative to air or sea travel for both goods and passengers in the region — will be fully operational in 2018, said Dr Ramiz Al Assar, World Bank resident adviser of the GCC Secretariat General in Riyadh, in October.

“The designs of the nearly $200 billion (Dh734 billion) network, which will run down the Gulf coast from Kuwait, through Saudi Arabia, to the UAE and Oman, with branches linking Bahrain and Qatar, will be completed by the end of this year or in the first quarter of next year. Construction on the network is to start in 2014-15 and it will be fully operational in 2018,” Dr Al Assar told the Mena Rail and Metro Summit, being held in Abu Dhabi.

Abu Dhabi is leading the GCC rail network with its Dh40 billion Etihad Rail project. The 1,200-km line, planned to be completed in 2018, will link major industrial zones, cities and ports in the UAE, and will eventually connect with the GCC railway.

In October 2011, Etihad Rail signed an agreement with Adnoc to transport about seven million tonnes of granulated sulphur a year from Habshan and Shah to Al Ruwais in Abu Dhabi for export.

The second phase will connect Abu Dhabi with Dubai. It will also provide links to Jebel Ali port, Mussaffah and Khalifa port. The third phase will be the extension to link the northern emirates. The second phase is expected to be completed by 2016 and the third phase by 2017.

The Etihad Rail network will also connect with the GCC network and this — once fully established — will cover Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

Riyadh plans rain drainage network

jochemgeheniau — Tue, 03 Dec 2013 09:03:56 +0000

Around 70 percent of Riyadh will have a rain drainage network in the next three years. Currently, only 26 percent of the city contains such an infrastructure, said Riyadh Mayor Abdullah Al-Miqbil.
Al-Miqbil said 22 percent of the city is currently having rain drainage systems installed and that 48 percent will be covered within one and a half years. He was speaking on the sidelines of a Saudi-Jordanian engineering forum.
He said that the Riyadh governorate, in collaboration with the Higher Commission for the Development of Riyadh (HCDR), has drawn up an ambitious plan to develop the city center on an area spanning 15 square km.
The area is targeted to become an enormous business and entertainment hub, with greenery, pedestrian crossings and multilevel parking lots, he said.
He stressed that the private sector would be a partner in the provision of public services and construction activities.
The Ministry of Municipal and Rural Affairs has continuously urged engineering offices to give utmost care to quality and excellence in drafting engineering plans, he was quoted as saying.
Hamad Al-Shaqawi, head of the Saudi Council of Engineers (SCE), said the forum focused on the quality of engineering products and commitment to the principles of building standards through different stages of construction.
SCE’s Secretary-General Ghazi Al-Abbasi said Saudi Arabia is experiencing an unprecedented developmental boom as part of its overall economic, educational and health infrastructure development.
This, he said, puts a heavy burden on engineers in the local market.
He expressed hope they would implement sustainable projects commensurate with the expectations of the citizens and leadership.

KSA to spend SAR110bn on new power, water projects

jochemgeheniau — Mon, 02 Dec 2013 09:02:09 +0000

JEDDAH – Saudi Minister of Water and Electricity Abdullah Al-Hussayen disclosed Sunday that the government will spend around SR110 billion on new projects to improve water and power infrastructure.
In his speech during the inauguration of the Saudi Water and Power Forum 2013 at the Hilton Jeddah, he also said the ministry will sign projects with the Egyptian Electricity Company in order to increase power generation in the Kingdom in the face of rising consumption, reaching its peak particularly during summer.
The three-day forum is being held in partnership with the Saudi Ministry of Water & Electricity.
Prince Mishal Bin Majed, Governor of Jeddah, inaugurated the event in the presence of other senior government officials and bigwigs in the industry.
Regarding the contribution of Saudi Ministry of Water and Electricity in the SWPF, Moya Bushnak’s Chairman Dr. Adil Bushnak said the “Saudi government’s initiatives are focused on diversifying the energy resources and we are looking forward for council of ministers to adopt King Abdullah City for Renewable Energy’s Plan in order to secure water and electricity for the Kingdom in the coming decades.”
He added “the Forum is a perfect platform to highlight such endeavors which are being undertaken to improve the Saudi Water and Power sectors and encourage the industry experts and leaders to form an operational network to leverage the upcoming business opportunities and potential investments.”
The Forum will create a think tank to deliberate on key issues. These issues are optimum utilization of renewable energy resources; use of effective desalination technologies; generate sustainability through implementation of smart electricity generation techniques and ways to overcome these challenges and create opportunities for business development and investment.
The Forum will further allow its participants and delegates to create a functional network as the delegates will get to participate in selected interactive roundtable discussions and achieve interactive time with the experts.
The SWPF will also feature a CWC Technical Seminar so as to let the participants become aware about the innovative new technologies that are being offered and implemented in the Gulf region. The German Desalination Industry Association (DME) will lead a morning session on “Key Solutions for Key Desalination Markets”.
Dr Abdullah Al-Shehri, Governor, Electricity & Co-Generation Regulatory Authority (ECRA); Dr Naïf Al-Abbadi, Director General, Saudi Energy Efficiency Center (SEEC); Dr Saleh Alawaji, Chairman of the Board of Directors, Saudi Electricity Company & Deputy Minister for Electricity, Ministry of Water & Electricity; Loay Bin Ahmad Bin Sa’ad Al-Musallam, CEO, NWC; Dr Michael Suess, CEO, Siemens Energy Sector; Amin Al-Shibani, VP Economic Development, KAUST; Maher Alodan, Research & Development & Innovation, KA CARE and Loay Alfi, Head of Business Development, KICP were among those present at the Forum and shared their viewpoints on the Renewable Energy Resources in the Kingdom of Saudi Arabia.
The Forum received full support and participation of reputed companies, including ACWA Power, Siemens, GE, Marafiq, Doosan, Alstom, Aqualia, Al Kawther, Severn Trent Services, Schneider Electric, Veolia Water, SAPAC Water, Frost, Sullivas, Desertec Foundation and King Abdullah University for Science and Technology.
Prominent entities such as National Water Company (NWC), King Abdullah City for Atomic and Renewable Energy (K-A-CARE), Saline Water Conversion Corporation (SWCC), Saudi Electricity Company (SEC), Saudi Arabia Solar Industry Association (SASIA), International Desalination Association (IDA), Electricity and Cogeneration Regulatory Authority (ECRA) and King Abdullah University of Science and Technology (KAUST) also participated in the Forum.

Cement industry in KSA, Kuwait set to flourish

jochemgeheniau — Wed, 27 Nov 2013 12:44:58 +0000

The cement industry in Saudi Arabia and Kuwait is expected to flourish due to the current construction boom in GCC region where the total value of projects planned or underway is estimated at $2.3 trillion, according to Kuwait Finance House ( KFH ).
The weekly economic report of KFH , also known as Baitak, said government support has been a key factor driving growth in regional construction and cement sectors.
Most GCC countries have allocated large portions of their respective budgets for construction activities.
For the 2013-14 fiscal period, GCC’s aggregate budget expenditure stood over $400 billion.
Of this, substantial allocations have been made to the education, health and infrastructure segments. Saudi Arabia has allocated almost a quarter of its total budget on education and increased spending on Infrastructure and transportation by around 16 percent year-on-year, the report cited by the Kuwait News Agency said.
It said Kuwait cement accounts for roughly 10 percent of GCC construction materials distribution market. In previous years, demand had slowed down as a result of postponement or delay in major infrastructure projects.
In addition, weak business environment further slowed down the industrial expansion, it said.
Kuwait, however, is also in line to join the current construction boom in the GCC, with projects worth of $188 billion already underway.
The Kuwaiti government has been showing adequate support for infrastructural development.
Some major projects underway in the nation include Kuwait City’s $7 billion on going metro project, which is expected to be completed by 2020 and the $3.3 billion Kuwait International Airport (KIA) terminal which is expected to open in September 2016, the KFH report stated.
Kuwait also plans to invest around $6.2 billion in a series of motorway construction projects with an approximate length of 550km by 2015.
At the same time, the other major developments include $2.6 billion Subiya causeway, a 37.5km bridge crossing Kuwait Bay, linking Kuwait City, Subiya peninsula and Boubyan Island.
Also, Kuwait has over $5 billion university building projects either in planning stage or under construction.
With such robust infrastructure spending plans, demand for cement is expected to pick up in near future, it said.
The Saudi cement industry is one of the established sectors in the Kingdom.
The industry is benefiting from massive investments currently underway in the Kingdom as the country bids to channel its oil revenues to build its infrastructure and strengthen the nonoil sector.
As a consequence, the government has initiated plans to execute projects, worth around $700 billion, across the Kingdom over the next 20 years.
Nearly half of the government investments are set aside for real estate and housing schemes in order to facilitate improved living standards for its citizens, the report said.

Saudi infrastructure projects changing property market landscape

jochemgeheniau — Tue, 19 Nov 2013 08:50:02 +0000

With the Kingdom’s massive $80 billion investment in infrastructure initiatives including new seaports, airports, railways and train stations, metro systems, and bus and road systems new real estate opportunities have been created in the market promising to change the property market landscape in the Kingdom.
To gain better understanding of the changing requirements and new driving forces in the Saudi real estate market, real estate professionals from the Kingdom and around the world will gather at the Riyadh Real Estate Summit, part of Cityscape Riyadh, taking place from Dec.10-12.
Commenting on the exhibition, Abdullah bin Mahfouz, chairman, National Exhibitions Company, said: “Now in its 4th year, the Riyadh Real Estate Summit has become an integral part of the Riyadh Urban Development and Real Estate Investment Event — Cityscape Riyadh and this year the interest of local, regional and international real estate professionals is at a its height because of the vast amounts being invested in real estate projects by the Kingdom’s government as well as the private sector.
“For this reason, day one of the summit will focus on the incredible expansion of the Saudi capital.
Following the opening address, Envisioning Riyadh in 2030 and much sooner, delegates will discuss the driving forces that are evolving Riyadh and the greater region, looking at how infrastructure initiatives, including the new transportation systems, satellite cities and planned facilities, will dramatically change Riyadh’s landscape and affect property prices and the cost of suitable land plots.”
Next will be a presentation by Youcef Betraoui, CEO, Land Sterling, Saudi Arabia, who will shed light on the new real estate opportunities created by the Kingdom’s infrastructure initiatives.
“The benefits of infrastructure development are undeniable,” said Betraoui. “For instance, Dubai’s property sector owes its double digit growth to the ever developing infrastructure and it is now reaping the fruits of those early initiatives that seemed unviable five years ago due to the huge outlays.”
He added: “In terms of data, SR65 billion has been earmarked by Saudi Arabia for the infrastructure and transport sector, up 16 percent over 2012. This includes SR30 billion related to the development of 3,700 km of roads, modernization of existing ports, construction of regional and international airports and berths as well as other infrastructure projects, sowing the seeds for a flourishing property market.
New infrastructure investment acts as a catalyst for new property development. For example, the Riyadh Metro will require feeder bus services and improvements in the current road network to enhance connectivity. Retail and commercial operations will get a huge boost with improved consumer access, while new property developments will push the government to invest heavily in electricity, water and telecommunications.”
Day one will further discuss the new urbanism in Saudi Arabia and horizontal strain covering rethinking a city’s layout to mitigate strain on municipal resources. Real-time project management for greater efficiencies and accountability, and Risk management for large scale development of Saudi Arabia are also important topics that will be covered during the summit.
Day one will conclude with the head of Saudi Equity Research, HSBC Saudi Arabia, KSA, speaking on the subject of investment returns for real estate in Saudi Arabia, among types and compared regionally.
Recent issues facing the real estate market in Saudi Arabia will be one of the main topics of discussion on day two of the Riyadh Real Estate Summit. Experts speaking at the summit will look for short- and long-term solutions that real estate developers and the construction industry should have in place to guarantee availability of adequate manpower for future projects.
The annual Riyadh Real Estate Summit is the most powerful meeting of real estate professionals covering the hottest topics and is the key networking event for developers, government officials, investors and financiers shaping the real estate industry in the capital city of the Kingdom.
Event Sponsors at this year’s show include Tadawul Holding, principal sponsor; Barwa Real Estate Group, founding sponsor; Knowledge Economic City, inaugural sponsor; and Mohammed Al Habib Real Estate Company and Flash Properties, both gold sponsors.
The Saudi real estate market is driven by good demographic fundamentals, with a large local population, and a growing middle class. This has caused increasing unfulfilled demand in the residential sector as Saudi Arabia is currently facing a shortage of housing. According to NCB Capital, the Kingdom will require an additional 973,000 housing units by 2015 and needs to build 300,000 units every year from 2013-2028.
The Ministry of Housing has announced many projects across the Kingdom and recently appointed a contractor to build 7,000 new residential units on Othman bin Affan street, northwest of King Khaled International Airport in Riyadh. The project will include 24 mosques, schools and other supporting facilities. This is one of many projects undertaken by the ministry across the Kingdom to address the acute housing shortage.
Historically, Saudi Arabia’s economic performance is ranked among the best in the G20, mainly driven by high oil prices, which strongly contribute to government revenues, enabling the world’s largest oil exporter to carry out massive fiscal spending to fuel private consumption and create jobs.
Driven by efforts to diversify away from oil, the government continues to channel oil proceeds into public capital spending on massive infrastructure, power and housing projects, which will provide a boost to the Kingdom’s construction, real estate, transport and utility sectors.

GCC industrial water treatment chemicals market revenue to soar

jochemgeheniau — Mon, 18 Nov 2013 09:02:15 +0000

JEDDAH – The water and wastewater treatment chemicals market in the Gulf Corporation Council (GCC) is making considerable headway as the dire water shortage has lent momentum to water treatment activities. Industrial water reuse schemes and stringent desalination requirements are further necessitating the deployment of high-quality treatment chemicals as a means to boost operational efficiency, cost-effectiveness, and environmental sustainability.
New analysis from Frost & Sullivan titled “GCC Industrial Water and Wastewater Treatment Chemicals Market” showed that the market earned revenues of $396.0 million in 2012 and estimates this to reach more than $568.2 million in 2017. The research covers pH conditioners, coagulants, flocculants, corrosion and scale inhibitors, biocides, and disinfectants, among other chemicals.
The focus among GCC countries to diversify into downstream industries such as refining, chemicals and petrochemicals has increased water usage as well as wastewater generation, providing significant thrust to water and wastewater treatment chemicals market.
“Tighter government regulations too will encourage companies to opt for more effective water and wastewater disposal and reuse methods, and thereby increase the demand for treatment chemicals,” noted Vishnu Sankaran, Associate Director and Head-Chemicals Practice, Middle East and North Africa, Frost & Sullivan. “For instance, the Treated Sewage.
Effluent reuse policy implemented by the Saudi Ministry of Water and Electricity serves to enforce effective water and wastewater treatment in industrial areas, in turn widening market potential.”
While participants will be buoyed by the effect of regulations on their market prospects, they will also be concerned about the control that a handful of companies have over major industries. Ultimately, this skewed balance of power pushes down prices of water treatment chemicals and curbs revenues.
Moreover, end users do not fully understand the advantages of high-quality, costlier treatment specialty chemicals and prefer to rely on regular commodity chemicals. Manufacturers too are reluctant to offer these advanced solutions as customers refrain from testing these products on a large scale fearing the loss of operational efficiency and reduced profitability.
“To achieve sustainable growth, suppliers must work hand in hand with end industries in the testing and selection of specialty chemicals that have a high performance to cost ratio,” added Sankaran. “Educating users on the long-term environmental, operational and profitability benefits of such chemicals is also a crucial part of this process, and will ensure a steady rise in overall sales.”
The GCC’s water and wastewater treatment equipment market is set to reach $2 billion by 2016, Frost & Sullivan said in an earlier report.
The market is currently being pegged at $1.3 billion but is growing at a compound annual growth rate (CAGR) of seven percent over the next five years.
As economic development gains speed, Middle East governments are moving aggressively towards promoting water conservation/storage, wastewater recycle and reuse and desalination of sea water in order to meet the burgeoning water consumption needs of all sectors, the report stated.
The region has begun investing heavily in water and sewerage networks to ensure 100 percent connectivity to the growing population, it said.
Water requirements by all the three sectors – agriculture, domestic and industrial – are set to grow from 35 billion cubic meters (BCM) to 49 BCM by 2020 in the Gulf region.
Whilethe sewage collection rate in the GCC is 52 percent of the total sewage generated however, contribution of recycled water to total water withdrawal is between four to eight percent.
The industrial growth in the GCC region is expected to unfold opportunities for advanced water and wastewater treatment solutions, according to the report. Desalination is expected to continue playing a critical role in the overall water supply in the MENA region. Across the Middle East, a total of 39 million cu. m/day of desalination capacity is expected to be added between 2010 and 2020.

Makkah-Riyadh link road to be ready in a year

jochemgeheniau — Thu, 14 Nov 2013 09:14:01 +0000

The contractor responsible for implementing the Taif-Makkah-Riyadh road link has said that the project would take a year to complete.
Ahmad Abdul Ghafoor, the engineer in charge of the project, said: “We are still in the early stages. The first part of the work involves laying down an 8-km section of the road. We have completed the surveying part of the work. Some technical matters need to be resolved, and we will then be able to move on to asphalting the section. This part of the road includes a number of culverts that need to be built, so we expect to complete the project within a year.”
“We were also given orders to construct a bridge at the intersection of Al-Urafa Road with Riyadh Road. We have completed the base and cement columns. The bridge work will be completed within five months at a cost of SR75 million,” he said.
Omar Al-Hussaini, director of the Taif Transport Department, said this road is considered “vital to the area.”
“Its completion will help reduce the distance for motorists driving along the Riyadh-Taif road leading to Makkah. This will be very helpful, especially for those who want to visit the Grand Mosque. It will also solve the problem of traffic jams in Taif. There are lanes marked for big trucks. The remaining section is 24 km long and there will be four lanes on each side,” he said.
“This project was not accounted for in earlier ministry budgets. We are now giving it top priority and it will be included in the next budget. The money needed for the project will be allocated and will be awarded to a specialized company for implementation,” he said.

GCC emerging as an attractive investment destination

jochemgeheniau — Thu, 07 Nov 2013 09:48:46 +0000

JEDDAH – “GCC offers strategic advantages, such as availability of cheap energy and feedstock supply, low tax environment, well-developed infrastructure, growing population and increasing income levels, conducive for the development of various industries in the region. All these advantages if properly showcased could attract substantial investment flows from Indian corporates, who are looking to expand their global footprints and scouting for distinctive cost advantages to remain globally competitive,” said Sameena Ahmad, Managing Director, Alpen Capital.
“The GCC is emerging as an attractive investment destination for Indian companies. We as Alpen Capital specialize in the GCC-India corridor and have concluded several transactions in this sphere. There are several opportunities that exist in the GCC for Indian companies and we see a lot of interest from Indian corporates to establish a presence in the GCC. This trend is on the rise and we will continue to work closely with our clients and the respective governments to facilitate these transactions,” said Sanjay Vig, Managing Director, Alpen Capital.
A variety of catalysts for investment growth exist in GCC. While the oil industry is undeniably a pillar for the GCC economies, the region’s priority is to achieve sustained economic growth through development of non-oil sectors. This can be achieved by increasing private sector participation, strengthening local technological capabilities, developing a skilled workforce, improving the competitiveness of exports in global markets and by attracting substantial overseas investments.
Continued government spending to boost competitiveness, self-reliance and developing local skilled work force would offer potential investment opportunities in sectors such as Petrochemicals, fertilizers, plastics, pharmaceutical, sugar refining, aluminium & steel. In addition government support and infrastructure is expected to grow in sectors such as Information & Communication technology (ICT) and agriculture, food processing, education, financial services and EPC.
GCC offers substantial cost advantage for industries like petrochemicals, fertilizers, pharmaceuticals and metallurgy among others, as the region boasts of one of the lowest energy costs globally due to abundant availability of resources. Natural gas prices in GCC range between $0.8-1.5 per million British thermal units (mmbtu) compared with the global average of $4.0-6.0 per mmbtu. The availability of low-cost feedstock provides the region with distinctive competitive advantage. Average electricity prices for end users in GCC states are much lower at $3.7cents/kWh compared to countries that enjoys the reputation of being generation powerhouses ($10.5cents/kWh in USA and $9.4cents/kWh in China).
GCC’s twin surplus condition leads to economic stability: GCC’s large fiscal surplus (averaging ~9.2 percent of GDP over 2007-11) and trade surplus (averaging ~ 16.9 percent of GDP over 2007-11), low levels of public debt (averaging ~4.5 percent of GDP over 2007-11), and low external debt translate into a better rating, in terms of macro-economic health, than developed counterparts. On the other hand, economic diversification initiatives, growth in non-hydrocarbon sectors, pegged currencies, large forex reserves, well-developed infrastructure, and a moderate inflation environment provide an overall attractive business environment vis-à-vis emerging economies.

GCC railway fully operational in 2018

jochemgeheniau — Tue, 05 Nov 2013 08:32:36 +0000

Abu Dhabi: The 2,177-km-long GCC rail network, which will link all six Gulf states by rail for the first time, providing an alternative to air or sea travel for both goods and passengers in the region, will be fully operational in 2018, said Dr Ramiz Al Assar, World Bank resident adviser of the GCC Secretariat General in Riyadh, yesterday.

“The designs of the nearly $200 billion (Dh734.490 billion) network, which will run down the Gulf coast from Kuwait, through Saudi Arabia, to the UAE and Oman, with branches linking Bahrain and Qatar, will be completed by the end of this year or in the first quarter of next year. Construction on the network is to start in 2014-15 and it will be fully operational in 2018,” Dr Al Assar told the MENA Rail and Metro Summit, being held in Abu Dhabi.

GCC transport ministers approved the feasibility study for the railway in October 2008, although a number of other key decisions have yet to be taken, including the precise route of the line.

Dr Al Assar said talks were under way between Saudi Arabia and Jordan, on the one hand, and between Kuwait and Iraq, on the other, on connecting the Arabian Mashreq (Eastern) to Maghreb (Western) networks.

“Designs of a causeway to link Bahrain to the GCC railway is expected to be approved in the third quarter of next year and there are plans to link Muscat with Yemen,” Dr Al Assar said.

Dr Al Assar said a tender for a study to set up GCC railway authority was to be issued by the first quarter of next year.

“This year has seen a turning point in the regional rail market,” says MEED editorial director Richard Thompson. “Over the past 10 months, we have seen the region’s ambitions to build Metro systems and main line rail networks start to become a reality, with more than $30 billion worth of rail construction contracts awarded so far this year And there is a lot more to come.”

More than $30 billion worth of rail construction contracts have been awarded across the region in the first three quarters of 2013, compared with just $3.9 billion worth of contracts signed in the first three quarters of 2012. The single biggest investments this year saw $22 billion worth of construction contracts awarded in June on Saudi Arabia’s Riyadh Metro.

“The success of this project so far is likely to act as a catalyst for further Metro schemes in the kingdom,” Thompson said.

The Riyadh Metro project is one of the key projects being discussed at the MENA Rail and Metro Summit 2013. Other projects under discussion include the Etihad Rail, Doha Metro and plans for an integrated GCC rail network.

The rail boom also raises challenges for the region, particularly around skills shortage and supply chain bottlenecks.

“Everybody will be competing for the same resources,” Thompson said. “And there is a real risk of unnecessary delays and cost escalation unless people manage the situation effectively. A coordinated approach is required. That is what we are aiming to achieve with this summit meeting of regional rail industry leaders.”