03 September 2012
As much as USD 127 billion worth of rail projects are in the planning or construction stages in the Arabian Gulf up to 2030, according to Zawya data. These projects include plans for national railway systems, city rail systems or metros, and trams. Some of these will ultimately converge to form part of the ambitious GCC Rail project, which aims to unify the region and enhance people connectivity and freight movement.The figure is expected to go higher given that project values are not available for some announced projects (see UAE table).

Since conservative budget projections have always left room for larger surpluses, it firmly underpins the GCC governments' wider commitment to sustaining long-term development in infrastructure, education, healthcare and social and economic projects in keeping with the growing demographics in the region.

The population of the six Arabian Gulf countries is expected to grow to 49.4 million in 2016, according to research by Riyadh-based Samba Financial Group. With crude oil prices averaging around USD 115 per barrel in the first half of 2012, the GCC governments will fundamentally remain committed to spending on surface transportation, specifically rail, when one considers all the drivers of growth.

Zawya 2012