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The Gulf Railway Project: Ambitions, Challenges, and the Path Forward

The Gulf Railway Project (GCC Railway) is an ambitious transnational infrastructure plan. It will pass through Saudi Arabia, Bahrain, Qatar, and the United Arab Emirates (UAE).

The railway aims to transport both passengers and freight. It facilitates greater economic integration, strengthens supply chain resilience, and promotes green mobility across the Gulf.

Strategically, the Gulf Railway holds significant importance.
It could serve as the backbone of a future GCC customs union. This would help to increase intra-GCC trade.
Currently, trade within the GCC accounts for roughly 10 percent of total exports. This is substantially lower than the European Union (EU), where over half of trade occurs within the bloc.

By improving connectivity, the railway can boost regional competitiveness and complement the region’s ports.
Beyond the Gulf, it can strengthen the GCC’s geoeconomic positioning. This can be achieved by linking with transnational corridors like the India-Middle East-Europe Economic Corridor (IMEC).

Such connections could elevate the GCC as a critical node in Eurasian trade. This would reduce dependence on vulnerable maritime chokepoints like the Strait of Hormuz and Bab el-Mandeb.
Consequently, this would enhance trade continuity despite geopolitical risks.

The Gulf Railway also supports the economic diversification agendas of GCC states. It provides a low-emissions logistics backbone aligned with their net-zero goals.
Etihad Rail estimates that rail transport could cut road emissions by 21 percent annually by 2050. This reduction would remove up to 300 trucks per train journey and reduce 8.2 million tonnes of CO2 each year.

Despite its enormous potential, the project has faced significant delays.
Over 14 years after its announcement, progress remains slow, and the project has yet to reach full-scale implementation.

This paper aims to explore the key reasons behind the stalled progress. It also proposes actionable solutions to accelerate the completion of the Gulf Railway Project.

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