Starting with MENA Infrastructure market highlights, a concise yet detailed review of MENA projects provided in areas of rail, renewable solar and wind affordable housing and PPP projects in various sectors. The presentation provides open opportunity for Investors, Contractors and Engineering Consultancy Firms to participate in MENA / GCC infrastructure projects.

1. MENA INFRASTRUCTURE
GROWING SECTORS -
TRENDS & PROSPECTS
MEA Infrastructure &
Property Development

2. MENA Infrastructure Market Highlights
Transport Sector – Regional Railway Drive
Renewables – Solar & Wind – Pilot Projects
Urbanization Euphoria! – Affordable Housing
PPP Projects Highlights - Picking Up Momentum

3. Egypt
West Bank & Gaza
Lebanon
Syria
Qatar
UAE
Oman
Yemen
Saudi Arabia
Jordan
Iraq
Kuwait
Bahrain

4. MENA Infrastructure Glance
• It‟s forecasted that GCC GDP to reach around US$ 2 trillion and a total population of around
53 million in the year 2020 A.D.
• There are some considerable challenges that MENA countries need to overcome in order to
move the infrastructure agenda forward.
• Urban congestion is growing and therefore increasing transaction costs for businesses or
commuting times for workers. It is estimated that the total economic and social cost of
congestion is about 5 percent of GDP.
• Investments of more than US$ 200 Billion already allocated to the development of transport
systems, with the rail networks and metro projects reaching US$ 100 Billion.
• The installed generation capacity of the electricity sector is estimated to be 20 percent below
the aggregate demand for electricity across countries in MENA.
• Subsidized electricity & water tariffs induces wasteful use of electricity & water therefore
increasing pressures for expansion of electricity generation capacity. Energy & Water subsidies
cost the region the equivalent of 8-10 percent of its GDP, whereas reducing these subsidies
could raise the region GDP by 3 - 4 percent.
• The quality and reliability of Infrastructure services are a real challenge which constrains
competitiveness, regional economic activity and growth prospects. Poor historical Public
services performance is generally observed in the region.
• Good demand drivers exist for PPP alternatives with the availability of attractive investment
alternatives like pension fund and insurance companies diversification into infrastructure.
4

5. MENA Infrastructure Investment Forecast
• Private investments in infrastructure in MENA have grown significantly since 1994, but at a
lower rate than other world regions.
• MENA countries need to create 40 million new jobs in the next ten years to meet the fast
growing labor force.
• This will require sustaining the economic growth at around 7 percent per year in the next ten
years which cannot be achieved without significant investments in infrastructure.
• The annual volume of infrastructure projects financed in MENA is estimated to have grown
from US$25 billion in 2007 to US$27 billion in 2008,before sharply declining by June 2009 to
US$6 billion due the global financial crisis (Investments in PPP in the Middle East and North
Africa almost tripled between 2000 and 2007)
• Middle Income Countries in MENA need to invest the equivalent of 9.2 percent of their yearly
GDP, in order to sustain their economic growth prospects. This represents a total investment
effort between US$75 to 100 billion a year, of which 33 percent is marked for the
maintenance of the existing stock of infrastructure.
• The Arab world invests about $60 billion a year in infrastructure, but to sustain current growth
rates, it needs about $100 billion annually.
• To meet this $40 billion gap, a smart mix of public sector engagement in coordination with
financing and expertise from the private sector is essential.
5

7. Common Transport Policies Objectives
• Integrate land use with transport policy
• Adopt Consistent legislation and regulations
• Support green sustainable transport, improve air quality,
reduce Noise
• Increase public transport options and access, reduce
severance
• Safeguard public safety and transport security.
• Improve transport efficiency and encourage competition
(Value for money)
• Support businesses and create employment opportunities
• Implement cross-border integration & interoperability
• Connect People & move Goods for economic development
and regeneration
7

8. ME Rail 2013 - Terrapinn Report

10. North GCC Cross Border Railway Linkages

11. GCC Railway Timeline & Costs
• Feasibility study endorsed by GCC 30th Summit on December 2009. Project is economically and
financially feasible.
• GCC Member States (MS) are well advanced in developing the Detailed Engineering Designs
expected to be completed by 2012. (Kuwait to Muscat with a proposed link between Saudi Arabia
and Bahrain while extension to Yemen is scheduled for stage II expansion).
• Construction is expected to commence by GCC Member States (MS) about 2013/2014 and
completed by about 2017.
• Total length estimated 2177 km single track mix use – passenger and freight transport.
• Total capital cost estimated:
• US$ 15.5 billion (passenger 200 km / hr. – Diesel Traction)
• US$ 25.6 billion ( high speed passenger 350 km / hr. – Electric Traction)
• GCC MS formed a Steering Committee - SG Transport Department PMU - to oversee the
Implementation of the GCC Railway (focal point). A “GCC Railway Authority” is expected to be
formed.
• GCC MS Governments pay infrastructure capital costs based on railway length in each MS (Capital
& Rolling Stock Cost Sharing).
• Concession of Operations & Maintenance to Private Sector
• Agreement with World Bank for continued Advisory Service.
• Cost of Extension National Lines (member state beneficiary pays).

12. Saudi Arabia National Railway Map
12

13. KSA Existing & Underway Railways

14. KSA – National Railways & Capital
• Riyadh Metro ($8bn) - AR Riyadh Development Authority
• 6 main routes, 175km long, 132 stations, 6 lines
• Four consortia leaders prequalified to design and build lines 1, 2
and 3 - Vinci Construction, Bombardier, FCC Construction and
Strabag.
• North South Railway Line ($3.2bn) - Saudi Railway Company
• 2,750km (1,418km passenger line from Riyadh to Al-Haditha and
1,486km mineral line from Al-Zubirah to Ras Az Zwar).
• The freight line has been servicing for over a year now. Passenger
capabilities within three years.
• Land bridge ($7bn) - Saudi Railways Organization
• 945km, the line will run from Jeddah Port to Riyadh and connect to
the Riyadh-Dammam line and a new route will link Jubail to
Dammam.
• PMC Contract won by Flour Corporation early 2013.Main tenders
expected early 2014.

15. KSA – Jeddah, Makka Railways
• Haramain High-Speed Rail ($13.7bn) - Saudi Railways
Organization
• 450km (372km Jeddah-Medina Section and 72km Jeddah-Makka
section)
• The regions first high-speed rail line, operations beginning in 2014.
• The line will have the capacity to carry over 30,000 people a day
• Jeddah Metro ($9.4bn) - Saudi Arabia Ministry of
Transport/Jeddah Municipality
• 3 lines (Green, Orange and Blue), 108km long, 46 stations.
• Line 1 will run from Old Makka Road to downtown. Line 2 will run
along Prince Majed Street from King Abdul Aziz International
Airport, while Line 3 will run along Palestine Road.
• Preliminary design work is nearing completion, bid throughout Q2 /
Q3 2013.

16. Bahrain Roads & Railway Projects
North Manama
Outer Ring Road
BD 100M
£ 173.2M
USD 265.9M
N-Road
BD 98M
£ 169.8M
USD 260.6M
Sh. Khalifa bin
Salman Highway
Interchange 2
BD 12M
£ 20.7M
USD 31.9M
Sh. Jaber Al Sabah
Highway
BD 80M
£ 138.6M
USD 212.7M
Access Road to
Northern Town
BD 74M
£ 128.2M
USD 196.8M
Al Fateh Highway
BD 51M
£ 88.3M
USD 135.6M
Widening & Extension
of Sh. Zaid Highway
BD 28M
£ 48.5M
USD 74.4M

17. Kingdom of Bahrain
• Saudi Bahrain Rail Link ($4.2bn) Gulf Cooperation
Council
• 90km, Run parallel to the King Fahd Causeway, part of the
planned GCC network
• Route feasibility study is underway by World Bank , should be
concluded by 2014.
• Bahrain Rapid Transport Network ($7.9bn) Ministry of
Transport
• 140km, 4-phased, Phase I includes LRT line and Tramway.
• Project in the study phase and the main contract is expected to
be issued in June 2015.

18. Kuwait
• Kuwait City Metropolitan Rapid Transit ($7bn),
Partnerships Technical Bureau
• Four railway lines, 171km long, 72 stations, 65% aboveground,
35% underground.
• PTB has invited contractors to express an interest to develop
rolling stock and systems for the project.
• Kuwait National Rail Network ($10bn), Partnerships
Technical Bureau
• 505km, first phase will be a 245km line connecting Umm Qasr in
Iraq to Qasr on the Saudi Arabia border

19. Oman
• National Railway -
($15.5bn) Ministry of
Transport and
Communications/Natio
nal Railway Company
• 1,061km long, Four
divisions, 6km tunnels,
17km viaducts, 15km wadi
bridges.
• Currently tendering for the
preliminary consultant
design contract and the
project management
consultancy packages

20. UAE & Qatar National Railway Network
20

21. UAE – Abu Dhabi
• UAE National Network ($11bn) Etihad Rail
• 1200km long, 10 tunnels, three stages, the first stage will be
operational by the end of 2013 and phase 2 by the end of 2014.
• Stage II is currently being tendered; Package A - 137km line from
Ruwais to Ghuwaifat, Package B - 190km line from Liwa Junction to
Al Ain, Package C - 186km line from Al Ain to Jebel Ali.
• Includes branch to Khalifa Port, Package D – railway integration and
systems, Package F - 78km line from Industrial City Abu Dhabi to
Mussafah
• Abu Dhabi Metro ($7bn) Abu Dhabi Department of
Transport
• 131km, metro and light rail railway. Network will connect the main
commercial areas of the city.
• The main contract tenders expected in 2014 and the first stage
completed by 2017.
• Abu Dhabi Light Rail ($7.8bn) Abu Dhabi Department of
Transport
• 340km light rail 3 lines system, connecting major business and
residential areas and key venues like the airport.
• Main tenders are expected in 2013, due to be completed 2017

22. UAE – Dubai
• Dubai Metro ($807m - extensions – new lines$?? bn)
Roads and Transport Authority, Dubai
• 12km extension to red line, 10km extension to green line, 3 new
lines (Blue, Gold and Purple)
• Will extend the metro to 421km long with 197 stations.
• The new lines will be completed by 2030
• Al Sufouh Tramway ($1.8bn) Roads and Transport
Authority, Dubai
• 14.6km, 17 stations, over 52% of the overall project completed.
• Completion target of Q4 2014.

23. Qatar National & Transient Transport
23

24. Qatar
• Doha metro ($?? bn) Qatar Railway Company
• 92 Stations, 231km long, total underground 100km, total elevated 101km,
total at grade 30km.
• Four metro lines (Red Line, Green Line, Gold Line and Blue Line), will
connect the Doha suburbs with city center and key business districts.
• Phase 1 targeted completion in 2019, phase 2 due to for completion in 2026.
• West Bay People Mover ($450m) Qatar Railway Company
• 9km, 1 line, 15 stations, a feeder line for the west bay area.
• Not decided whether this line will be above or underground.
• Light Rail Transit (LRT) ($1.2bn) Qatar Railway Company
• 48km, 4km, 38 stations, 1 depot, will connect districts within Lusail city to
Doha Metro.
• The Project in progress under design and build contract and features four
key tram lines with both underground and over ground.
• Qatar Regional Passenger ($?? bn) Railway Qatar Railway
Company
• 400km, 7 stations, 5 freight yards, 5 freight depots, 1 intermodal yard,
Qatar’s long distance passenger line.
• Currently tendering civil design consultant’s contract, the project will be
built in three phases.

25. Iran
• Tehran Metro Expansion ($19bn), Tehran Urban &
Suburban Railway Company (TUSRC) - Phase II - 102km,
68 stations.
• Iran-Armenia Railway ($2bn), Ministry of Roads &
Urban Development - 540km (60km on Iranian soil and
480km in Armenia).
• Qom Monorail ($1.8bn) Qom Urban Railway
Organization - 18.5km, 20 stations.

26. GCC Railway Estimated Expenditures
26

27. • Rail transport has comparative advantage over road transport for bulky not
time-sensitive goods (Cement, fertilizers, grains, oil products, ores) and
container goods, especially when transported on point-to-point routes.
• Comparative advantage is assessed in terms of reliability, safety, freight
traceability, speed, punctuality, frequency, safety, and comfort for passengers.
• There is a real environmental advantage brought about by energy efficiency of
diesel or electric traction. Railroad‟s carbon footprint could be respectively 65%
and 85% lower than that for highway
27
To Bring a Shift to Green Transportation
• Appropriate regulations like clean fuel quality standards are essential to green
transport that need to be socially and politically acceptable.
• Transportation demand management practices to reduce vehicle trips by
increasing vehicle occupancy, reducing vehicle distances travelled and
institutionalize public transit as essential.

29. MENA Solar Potential
29

30. MENA – EU Cross-Border Collaboration Potential
30
The MENA countries have fantastic cross-border collaboration opportunities within and
with EU that could provide a multiplier effect across the region.

31. Desertec - Clean Power from the Desert
31

32. http://www.solarmiddleeast.ae/spl/locator/
32

33. MENA Wind Potential
33
Annual Wind Speed (m/s) 80m above MSL

34. RE MENAActivity
34
The Solar Levant and GCC Congress, Amman 2011

35. Solar Projects in GCC/MENA
• Saudi Arabia is building the world’s largest solar power desalination plant at Ras Al Khair to provide 10 million
m3 per year which is the third desalination solar plant in Saudi Arabia.
• Abu Dhabi launched its Masdar Sustainable City initiative, which will house 50,000 people and will be
completely reliant on renewable sources for its power needs, is paving the way for carbon–free cities in the
region. Shams 1 , 100 MW solar plant, is due to be completed by the end of 2013 and will cost an estimated
US$600 million. Abu Dhabi Company for Future Energy, has already connected a 10 MW PV plant to the grid.
• DEWA, UAE recently announced the tender for aUS$3.3 billion Mohammed bin Rashid Solar Park, with a view to
establishing 10MW of installed capacity by 2013, and eventually 1GW (1,000MW) by 2030.
• Kuwait has completed a technical feasibility study for the construction of a solar thermal power plant with a
capacity of 280 MW, including 60 MW solar component. Tender for the solar energy plant to provide 5% of its
energy requirement through such technology by 2020 was released in 2013.
• Egypt started operation in 2011 of its first grid-connected large-scale Integrated Solar Combined Cycle (ISCC) of
140 MW with 20 MW solar share. Egypt also intends to build two new CSP projects with 50 MW each, as well as
a 20 MW large-scale grid connected PV plant in south Egypt by the year 2017.
• Jordan is intending to build Shams Ma’an PV project, a 100 MW PV plant which can be expanded to 200 MW.
• Yemen has launched rural electrification projects based on PV systems in cooperation with Germany. Ka'awa
Village PV Electrification Project as an example.
• Bahrain the Ministry of Energy is developing pilot solar project.
35

36. 36

37. RE Wind Projects in GCC/MENA
• Saudi Arabia began the preparation of feasibility studies for the establishment of two
wind farms, the first with capacity ranging from 20 to 40 MW, and the other with a
capacity of 10 MW.
• Abu Dhabi , Sir Baniyas Island wind project, with a capacity to produce 30MW, is also
expected to be completed in 2013. Also Masdar as considering plans for a 100MW
wind farm near Saudi border.
• Egypt, it is expected that 12 per cent of the total electric energy generated by the year
2020 will be from large-scale renewable wind energy projects. West of red sea area has
good winds.
• Jordan’s plans include the establishment of wind farms with a capacity of 600 MW
until 2020.
• Yemen has a 60 MW wind farm in the development phase.
• Bahrain The Oil Ministry tendered a pilot combined project of 3 megawatts wind
power and 2 megawatts of solar. (Bahrain gets about 83 percent of its energy from
natural gas and the rest from oil)
37

39. • Demand for housing is increasing due to the presence of a large number of expatriate workers
and inflow of people from villages and cities, apart from population growth
• Population growth and lower family sizes push greater demand for housing. Nearly 40% of
population is younger than 15.
• The preference for most residents is villa living rather than apartment living, however
apartment living is more affordable. The cost of villas in Urban major cities is out of reach for
the common citizen. Nearly 80% of households cannot afford to own units of greater than 200
sqm.
• Housing is considered a basic right to be provided by government to those citizens who cannot
afford it.
• Affordability improves if traditional subsidies are available (zero interest loans, land grants,
government rent to buy, free infrastructure).
• Government need to take an active role in delivering affordable housing, the private sector
cannot be relied upon to perform this function as largest developers deliver roughly 1000 new
units each year.
• Private sector see the mid to low housing sector as low margins business and as such some
developers show little interest in this sector with major costs to develop the primary
infrastructure requirements (waste water, water, electricity and district cooling) to enable the
development of new communities.
Housing Sector Characteristics in MENA

40. Opportunities in MENA Social Housing - Media
• Iraq ? - The Iraqi government in June 2011 approved plans to build 3.5 million new homes within the
next ten years to meet the housing crisis that it is facing. A $70 billion reconstruction package
announced included the allocation of $25bn investment for housing.
• Libya ?? - The (earlier) Libyan government was in the process of launching its first development
program to invest across the infrastructure of the Country including Housing. The housing program
was to develop over 300,000 new houses at a value of $35 billion.
• Kuwait-The Government is pushing ahead with a number of affordable housing schemes using the
Build Operate Transfer (PPP) procurement models.
• Bahrain - Bahrain Government signed in early 2012 a record BD208m ($550m) with a local
Developer to build more than 4,000 affordable homes. Bahrain forecasts the need for about
350,000 new residential units to be added to existing stock by 2030 with $1.1bn to be spent
every year up to 2020, and then $242m annually up to 2030.
• Saudi Arabia needs 1.65 million new homes by 2015 .Total commitment is $130bn on social
projects with $67bn allocated for 500,000 new homes and $400 billion for infrastructure projects.
KSA Construction Housing Pipeline Projects valued at US$ 29 billion for 2012.
• Saudi Arabia nationwide accommodation needs have been estimated at more than five million
new housing units by 2020. The plan says Saudi Arabia will require SR 2.4 trillion (US $640
billion) of investment in real estate over the next 20 years.
40

41. 41
Top Trends for GCC Real Estate in 2012 - 2020
• Increased focus on realism is likely to be the trend influencing the GCC real estate sector in
the years ahead, resulting in more attention to the needs of the customer, more emphasis on
financial returns and bottom line performance. Increase in sales activity at the lower end of
the market is observed.
• More awareness of the commercial advantages associated with green buildings and
sustainable practices.
• Developers are turning to government-led housing initiatives in order to compensate for a
decline in public spending and a decrease in demand for new projects. Examples include;
• Diyar Al Muharraq - Bahrain's, is launching „crafted affordable housing program‟ to
address the Kingdom‟s growing need for social housing.
• Kuwait Oil Company is making more than 350 housing plots are made available for new
projects in Kuwait‟s Al Qairawan, part of Kuwait City expansion plan.
• Al Falah - UAE launched a $2.5bn, 1,200ha housing development for UAE nationals
near Abu Dhabi, with 4,857 villas and an expected population of 60,000.

42. • Jeddah needs almost one million housing units over the next 20 years,
according to a strategic plan prepared by the Jeddah municipality. Currently
there is a shortage of 283,000 housing units, including 80,000 in the low-income group.
• The plan calls for immediately building 151,600 units for accommodating
people living in underdeveloped areas, and 51,500 units to meet the demand
of population growth.
• An International real estate firm was awarded a SR1.1bn contract to building
affordable housing over 1million m2.The specifications call for service life
span of 100 years, concrete based products offering ductile properties
(seismic resistant), 4 hour fire rating at 1200 degrees Celsius and highest
thermal properties
42
Example; Jeddah – KSA Housing Program

43. Example; Bahrain Housing Program
43

45. GCC PPP Activity
• With huge government surpluses, securing finance is not the
overriding factor behind the PPP push in the GCC countries, rather, it is
the goal to deliver projects more efficiently, grant the private sector a
greater economic role and assist with the diversification of the local
economy.
• Since 2010; over 50 PPP contracts were signed in the GCC region.
These projects require investments of more than USD 60 billion.
• As of 2012, the UAE had signed off an estimated USD20 billion worth of
PPPs, with some USD7 billion accounted for by Abu Dhabi's utility
sector.
• Kuwait government rolled out in mid-2010 through Partnerships
Technical Bureau (PTB) – Kuwait PPP unit – A PPP program comprising
32 projects and requiring investment of USD28 billion in various
sectors - Transportation, real estate, healthcare, utility projects and
recycling factories under B.O.T system with the largest being the
estimated USD10 billion Kuwait national rail scheme.
• Bahrain concluded in 2011, Al Muharaq STP, a 330 Mil USD BOT Project
45

46. Potential PPP Pipeline Projects – GCC - 2012
46
GCC Railway Network - O & M PPP
KSA High Speed Railway PPP
KSA - Jeddah Airport PPP
KSA - Mecca Mass Rail Transit PPP
KSA - Medina Medina International Airport PPP
Kuwait Metro Rail PPP
Kuwait Recycling factories PPP / B.O.T
Kuwait STP PPP / B.O.T
Oman National Railway Network PPP
Qatar - Doha Metro PPP
UAE Union Railway PPP
UAE - Abu Dhabi Mafraq-Ghweifat Highway PPP
UAE - Abu Dhabi Airport PPP
UAE - Dubai Water Taxi PPP

47. PPP Pipeline Projects – Rest of MENA – 2011/12
47
Egypt Rod el-Farag Highway PPP
Egypt Egyptian Refining Company
Egypt Suez 650 MW Steam Thermal Plant
Egypt Taxi Replacement Scheme (Gas fired)
Egypt - Alexandria University Hospital PPP
Egypt - Alexandria Hospital PPP
Egypt - Cairo Wastewater treatment plant PPP
Egypt - Cairo-Alexandria Cairo-Alexandria Freeway PPP
Jordan Rail Transit / Railway PPP
Jordan - Amman Light Rail PPP
Jordan - Amman Ring Road Highway PPP
Morocco Railway Line
Morocco - Casablanca Drinking Water Supply -Rabat
Tunisia Hasdrubal Oil & Gas Field
Tunisia Road Project VI

48. Loay Ghazaleh,
MBA, BSc. Civil Eng.;
loay.ghz@gmail.com
Advisor,
Undersecretary Office,
Ministry of Works -
Bahrain