Abu Dhabi-Agencies
Economic reports indicate that about $30 billion of major railway project contracts have been awarded in the region so far in 2013 out of about $108 billion in total contracts across all sectors, making the railway sector the largest in terms of major projects in the market this year.

Rail network
Experts who met yesterday at this year's Middle East Rail and Metro Summit in Abu Dhabi noted that some $194 billion worth of rail projects are currently planned or underway in the Gulf Cooperation Council (GCC) countries.
MEED representatives said the rail construction boom began this year in the GCC, which will result in a dramatic change in the quality of life and work in the region in the next decade, according to the MEED Business Report.
30 billion dollars
More than $30 billion worth of rail construction projects and contracts were awarded across the region in the first three quarters of 2013, compared to $3.9 billion worth of contracts signed in the first three quarters of 2012. One of the largest investments made this year was the $22 billion worth of construction contracts awarded in June for the Riyadh Metro in Saudi Arabia.

The Riyadh Metro is one of the key projects to be discussed at the Middle East Rail & Metro Summit 2013. Other projects to be discussed include Etihad Rail, the Doha Metro and plans for a rail network connecting the Gulf Cooperation Council (GCC) countries.
The next 12 months are expected to see a huge boost in the region's railroad market. As Oman prepares to establish its own national rail network, the Oman Railway Company is looking to qualify contractors for rail projects before the end of the year. Saudi Arabia is also expecting a surge in metro contract awards, with Makkah, Medina and Riyadh all developing light rail and subway networks in the coming years. Jeddah Metro has already announced at the summit that the Jeddah Metro will likely be awarded in the first half of 2015.

«This year has seen a turning point in the regional rail market,» says MEED Managing Editor Richard Thompson. «Over the past 10 months, we've seen the region's ambitions to build metro systems and roll out mainline rail networks become a reality with more than $30 billion in project awards so far this year, with much more to come.»
The rail construction boom also poses challenges for the region, particularly around skills shortages and bottlenecks in supply chains.
Urban mobility
This growth is driven by GCC member states« eagerness to diversify their economies away from oil and gas and its revenues, as well as their anticipation of the urban mobility challenges that often accompany the growth of local markets. Many projects involving the construction of new ports, airports and surrounding logistics zones will also need an integrated rail network to support cooperation in realizing growth aspirations among GCC countries.

There are several new projects that have been launched or are in the pipeline. Several new projects were launched or re-launched in 2013, with plans for major rail networks announced in Oman and Qatar. Etihad Rail in the UAE is leading the way in terms of overland rail projects, with the first phase of its rail network nearing completion and second phase projects expected to be awarded before the end of the year, thus boosting the total value of contracts awarded this year.

The UAE's Etihad Rail is also leading the way in terms of overland rail projects, with the first phase of its rail network nearing completion and the second phase expected to be awarded before the end of the year.