Middle East Railway Opportunities – Practical Guidance for Korean Contractors
Korea Focus
Jiwon HaSenior Counsel,Korea Group
Jonathan BlaneySenior Counsel, Construction & Infrastructure
The Middle East region is experiencing an unprecedented surge in railway development, driven by several key factors. Governments are investing heavily in rail infrastructure to diversify their economies away from oil dependency, reduce urban congestion, and support sustainable growth. Population growth and rapid urbanization have created a pressing need for efficient mass transit solutions, while regional integration goals—such as the GCC Railway Network—aim to strengthen economic ties and facilitate cross-border trade. Environmental concerns and the global push for greener transportation are also motivating the shift toward electrified rail systems, which offer lower emissions and improved energy efficiency compared to traditional road transport.
The benefits of these rail projects are substantial. They enhance connectivity between major cities and economic hubs, reduce travel times, and support tourism and business development. Railways also play a critical role in logistics, enabling faster and more reliable movement of goods across the region. By improving access to jobs, education, and healthcare, rail infrastructure contributes to social inclusion and overall quality of life.
Furthermore, these projects stimulate local economies by creating jobs, fostering technology transfer, and encouraging the growth of local supply chains.
Korean contractors have a strong track record in high-speed rail technology and complex infrastructure projects worldwide. This makes the Middle East an excellent market for expansion. The region is planning to invest over $100 billion in railway projects through 2030 and these projects are more than just transportation infrastructure. Rail is seen as a strategic enabler of non-oil GDP growth regional integration, and sustainable development. These projects are key parts of national development plans across the GCC in the UAE, Bahrain, Qatar and Saudi Arabia. For contractors seeking to position themselves as long-term strategic partners, it is essential to understand the broader context, including the economic, social, and environmental drivers behind these investments, and to align their offerings with the region’s goals for innovation, localization, and capacity building. To best get involved, Korean contractors should focus on early engagement with project stakeholders, participate in industry conferences, and build strategic partnerships with local entities. Demonstrating expertise in advanced rail technologies, offering comprehensive solutions that include design, construction, and long-term maintenance, and committing to technology transfer and workforce development are essential. Korean firms should also tailor their bids to meet localization requirements, such as training local workers and developing local supplier networks, and leverage their experience in delivering large-scale, complex projects to address the region's unique challenges. By positioning themselves as long-term strategic partners and investing in local capacity building, Korean contractors can maximize their competitiveness and secure a lasting role in the region’s transportation transformation.
Etihad Rail (UAE)The UAE has tendered a contract to design and build the civil works for a new 150km high-speed train line between Abu Dhabi and Dubai. This project represents one of the most significant railway developments in the region, with authorities from Abu Dhabi and Dubai launching a high-speed passenger rail link that will cut travel time between the cities to just 30 minutes. The project encompasses multiple tendering opportunities, including civil works packages for the high-speed passenger line and upcoming tenders for station construction and associated infrastructure. Beyond the Abu Dhabi-Dubai connection, the broader Etihad Rail network includes plans for the UAE-Oman connection, known as Hafeet Rail, which will extend the network's reach and create additional contracting opportunities.
Current tender activities focus on design-build contracts for civil works, with specifications requiring advanced engineering capabilities and experience in high-speed rail construction. The electrified nature of the system demands contractors with specialized expertise in railway electrification and modern signaling systems.
Saudi Landbridge (KSA)Saudi Railway Company announces a public tendering invitation for Lead Design Consultancy Services Saudi Landbridge Railway Network. This estimated $7bn project comprises more than 1,500km of new track, representing one of the largest railway infrastructure investments in the region. The Saudi Landbridge project aims to create a comprehensive freight and passenger network connecting Jeddah, Riyadh, and Dammam, fundamentally transforming Saudi Arabia's logistics capabilities. The current tender for lead design consultancy services represents the first phase of what will be extensive construction tender opportunities over the coming years.
Future construction tenders are expected to be structured as large-scale design-build packages, potentially including multiple sections of the network to optimize construction efficiency and risk allocation. The project's scale and complexity create opportunities for international contractors to form consortia and joint ventures with local entities.
Dubai Al Maktoum International AirportThe Al Maktoum International Airport expansion includes significant railway infrastructure components. The Automated People Mover (APM) will link passengers across terminals and concourses through 14 stations. This represents a specialized opportunity for contractors with airport rail system expertise.
The first phase of Al Maktoum International airport includes the construction of a passenger terminal and four concourses, with the APM system forming an integral component of the overall development. The project's timeline aligns with Dubai's broader infrastructure development goals and creates opportunities for integrated delivery approaches.
GCC Railway Network The regional GCC Railway Network is the most ambitious cross-border infrastructure project in the Gulf. It will eventually connect all GCC member countries in a unified railway system. Recent developments include Kuwait's $8 million railway contract and new design tenders from Saudi Arabia. The complexity of cross-border railway projects requires contractors with experience in international project delivery and multi-jurisdictional regulatory compliance.
Qatar Rail Projects and Bahrain InitiativesQatar is developing passenger and freight rail connections from Doha to the Saudi border and airport terminals. These projects support the broader GCC network while meeting Qatar's specific transportation needs.
Bahrain's King Hamad Causeway Rail Project represents another emerging opportunity, with tender processes expected to commence in the near future. This project will enhance Bahrain's connectivity within the regional railway network.
Design and Build Contracts Most major railway projects in the region use design-build contracts. These contracts give contractors responsibility for both design and construction, along with the associated risks.
Under the design-build model, contractors must turn performance requirements into working railway infrastructure. This covers everything from basic earthworks and civil engineering to advanced electrical systems and sophisticated signaling technology. Korean contractors need to show they can handle high-speed rail construction and coordinate complex technical systems. The integrated nature of these contracts requires expertise across multiple areas of railway construction.
EPC ContractsEPC contracts are becoming more popular for complex projects. Under EPC arrangements, contractors take complete responsibility for the entire project from start to finish. This includes selecting technology, managing procurement, and ensuring the system meets performance standards. EPC contracts require contractors to guarantee actual operational performance, not just construction completion. This includes targets for system availability, passenger capacity, and energy efficiency. For Korean contractors, EPC opportunities offer significant business potential. However, they require substantial upfront investment in technology selection, procurement strategies, and performance risk management.
Public-Private Partnership (PPP) Models PPP arrangements are growing in popularity across Middle East railway projects. Governments use these long-term agreements (typically 20-30 years) to access private sector efficiency and innovation while optimizing their capital spending.
The financial structuring of railway PPPs often includes revenue-sharing mechanisms based on passenger volumes, freight throughput, or availability payments, creating alignment between contractor performance and long-term economic success. Korean contractors' experience with technology lifecycle management and relationships with domestic technology providers position them well for these extended partnerships. This is especially true when PPP agreements include rolling stock supply, maintenance systems, and operational support services.
Professional Services Opportunities Professional services contracts are typically smaller than major construction packages, but they offer strategically important market entry opportunities. These contracts include design supervision, project management, and technical advisory services. They give Korean contractors early project intelligence and a deeper understanding of the rail market in the region which can be of significant benefit when identifying and preparing for participation in future construction tenders.
Korean contractors should focus on early engagement with project stakeholders, participate in industry conferences, and build strategic partnerships with local entities.
Prequalification Requirements Successful participation in Middle East railway tenders requires meeting stringent prequalification criteria. Technical capacity requirements typically include comparable project experience, with specific emphasis on high-speed rail or complex urban transit systems. Financial standing requirements often specify minimum annual turnover thresholds and bonding capacity requirements. Experience requirements frequently mandate specific project values, completion timelines, and technical complexity thresholds.
Partnership with Local Entities The importance of partnerships with local entities cannot be overstated in the GCC railway market. Joint ventures and consortia arrangements provide several strategic advantages, including local market knowledge, established client relationships, and meeting local content requirements in major tenders. Local partnerships also facilitate navigation of regulatory requirements and cultural considerations that significantly impact project delivery success. Korean contractors should prioritize establishing these relationships well in advance of specific tender opportunities.
Technology Transfer and Localization Expectations Major railway projects increasingly require technology transfer and localization. These requirements often include:
Training programs for local workers
Establishing local maintenance capabilities
Transferring specialized technical knowledge
Developing local supplier networks
Demonstrating economic development benefits
Korean contractors' expertise in advanced railway technologies positions them well to meet these requirements. Showing commitment to knowledge transfer and local capacity building is often a significant competitive advantage.
Early engagement is crucial, often beginning 18-24 months before tender release through participation in industry conferences, stakeholder meetings, and prequalification processes. This timeline allows for proper partnership development and regulatory compliance preparation. Forming strategic partnerships with local entities and complementary international contractors creates synergies that enhance competitiveness while satisfying local content and capability requirements. These partnerships should be established based on complementary strengths rather than purely opportunistic considerations. Korean contractors should also invest in understanding local regulations, cultural expectations, and procurement processes, and proactively offer technology transfer, training programs, and local supplier development to meet localization requirements.
The cross-border nature of many projects adds complexity that demands specialized legal and regulatory advisory capabilities. Understanding regulatory frameworks across multiple jurisdictions requires dedicated resources and expertise. Korean contractors can leverage their global experience to navigate these challenges and provide integrated solutions that address both technical and regulatory needs.
The GCC rail boom is entering a decisive delivery phase. Korean contractors can bring market-leading technology and strong project management skills, but success depends on careful risk evaluation and effective localization strategies. With careful structuring, early stakeholder engagement, and strong contract management, Korean contractors can turn GCC rail opportunities into long-term partnership in the region’s transportation transformation.
For further information,please contact Jiwon Ha and Jonathan Blaney.
Published in October 2025
