Saudi Arabia is presently investing over US$ 45 billion to develop its world class rail networks.
Railway sector in Saudi Arabia
Saudi Arabia is presently investing over US$ 45 billion to develop its world class rail networks. Its ambition
of a better and bigger railway is starting to come into life, with its new railway projects covering a total length
of 7,000 km.
The allocated budget for rail development in KSA is believed to be $90bn over 30 years. This 30
year master plan will provide ‘an integrated and clear future vision’ for a ‘safer, better and bigger
railway. The projects already announced and in progress are:
ξ US $ 7.5bn - Jeddah-Riyadh, Dammam-Jubail Railway - (Landbridge) project. To be
tendered this year.
ξ US $ 12.3 bn - Haramain High Speed Rail Link - a 444 kilo meters high-speed track that
will link the Muslim holy cities of Medinah and Makkah via King Abdullah Economic
City, Rabigh, Jeddah and King Abdulaziz International Airport. Project in progress.
ξ US$ 2.3 bn - Ras ALZour(Ras Al Khair)-Jubail-Dammam Rail Link Project. Awarded last
ξ US $ 25 bn Gulf Cooperation Council (GCC) Rail Project:
ξ Extending from Saudi Arabia to Kuwait, Qatar, Bahrain, UAE and Muscat. To be tendered
ξ US $ 20 bn - Urban Mass Rail Transit System - Makkah Metro, a project of 182 km with
88 stations, to link different areas of Holy Makkah with the Grand Mosque.
ξ US $ 7-8bn Riyadh Metro: Arriyadh Development Authority (ADA) has issued invitation
for contractors to prequalify for the main construction package on the planned $7-8bn
Riyadh metro project before 20 June 2012.
ξ Riyadh metro project invited global consortia, specialised in production and supply of
rolling stocks, controls, telecommunications systems, as well as metro tunnelling, civil,
mechanical and electrical works, to pre-qualify for the main construction package on the
planned $7-8bn Riyadh metro project before 20 June 2012.
ξ Saudi Railway Company (SAR) is inviting companies to submit bids by 26 May for the
contract to carry out detailed engineering design for the kingdom’s planned $7.5 bn
Landbridge rail project
ξ Formulate group of UK companies, interested in Makkah Metro and visit Saudi to call on
MMRTC Transportation Advisor for presentation and discussion.
ξ UK rail operation & maintenance companies to focus Makkah Metro operation &
maintenance contract to be tendered soon.
ξ UK companies to follow the GCC rail consultancy project and to keep a track of its
ξ UK training providers for rail repairs & maintenance, to establish training centres in the
Kingdom to train Saudis.
ξ UK Company’s involvement in Landbridge project and alert UK possible bidders.
ξ US $ 20bn new Bahrain Causeway to be tendered soon to be built on BOT basis
Latest export opportunities – Railways
Latest export opportunities - Saudi Arabia
Getting into the market
Saudi Arabia’s experience in the railway industry is relatively new and could be described as
modest compared with the UK. There is only one small railway (400 km) in the country. Railway
manufacturing is not well established in Saudi Arabia. Saudi Railways Organisation (SRO)
operates and maintains the current network and welcomes foreign expertise. They have imported
rail engines, carriages, rail track, sleepers, etc from USA, Switzerland, France, Korea, etc.
To maintain its reputation as a provider of good and reliable service, SRO is keen to improve
standards of their operation. Thus, there is ongoing requirement for material/equipment suppliers
and service providers in the sector.
All materials and equipment used in Saudi Rail projects are to be approved by the Saudi Railway
Organisation. Quality and technical standards are more important than price in bid decisions.
Adherence to schedules and specifications and long-term commitment for after sales service are
key to win projects. Business tends to be done through direct procurement rather than via agents.
Technical and regulatory standards in Saudi Arabia are different to those of the EU, hence should
be well studied and understood.
UK companies are advised to familiarise themselves with sample specifications at the earliest
More about doing business in Saudi Arabia
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
ξ David Harries, British Trade Office-Alkhobar.
Tel: +44 3 882 5300 or email: David.Harries@fco.gov.uk
ξ Abdul Muqtadar, British Consulate General-Jeddah
Tel: +44 2 622 5550 or email: firstname.lastname@example.org.
Contact your local international trade team
UK Mass Transport trade mission to Saudi Arabia
1-5 September 2012
ξ Contact Jason Castelino
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events - Railways
Latest events – Saudi Arabia
More about OMIS and other UKTI services for exporters