UAE joins Saudi Arabia, Kuwait, Qatar, Bahrain and Oman in advancing GCC railway network
The Gulf Cooperation Council (GCC) countries—Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates (UAE), and Oman—have long been planning the development of an integrated railway network that will span over 2,177 kilometers across the region. The ambitious project, known as the GCC Railway Project, aims to revolutionize transportation and connectivity within the region, enabling faster movement of both passengers and goods. As the railway development enters a crucial phase, 2025 marks a year of significant progress and achievements. In this article, we explore the key developments and milestones in the GCC railway project as well as its broader implications for the region’s economy, environment, and future.
The GCC railway project was first proposed in the early 2000s as a response to the growing demand for efficient transportation systems that could support the rapid economic growth of the region.
Middle East continues to distinguish itself as a global economic outperformer
The Middle East continues to distinguish itself as a global economic outperformer, with the UAE and Saudi Arabia leading the charge. While global GDP growth is projected at 3.2 percent this year, the UAE is expected to grow by 4 percent and Saudi Arabia by 3 percent with further acceleration anticipated through 2027, according to a report by NielsenIQ, a leading consumer intelligence company.
Consumers across these regions continue to demonstrate strong resilience amid ongoing challenges, stated the report.
This robust performance is underpinned by strategic international partnerships, balancing ties with both BRICS (Brazil, Russia, India, China and South Africa) and Western economies, alongside targeted investments in digital transformation and a young, digitally connected population, it added.
Fiscal policy, increased public spending are shaping GCC economic resilience?
The Gulf Cooperation Council (GCC) countries—comprising the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain—are navigating a complex global economic landscape marked by volatility in oil prices, geopolitical tensions, and shifting global demand patterns. In this context, fiscal policy and public spending have emerged as critical tools for stabilizing their economies, sustaining growth, and advancing diversification efforts away from hydrocarbon dependency.
According to the Muscat-based GCC Statistical Center (GCC-Stat), total public spending by the six GCC countries is projected to reach an unprecedented $542.1 billion in 2025. This marks a significant increase compared to previous years and reflects the governments’ commitment to supporting infrastructure development, economic diversification, and social welfare programs despite global economic headwinds.
France and the GCC reframe their economic future
Gulf countries are no longer seen merely as consumers, they are now recognized as producers and increasingly, as global innovators, concludes the Vision Golfe 2025.
The two-day event hosted more than 1,200 participants, including 550 high-level actors from GCC countries, at the French Ministry of Economy, Finance, and Industrial and Digital Sovereignty to deepen strategic ties and co-develop the economic future of both regions.
The forum hosted five ministers, around 80 top-level speakers, over 2,000 formal and informal meetings, and more than 70 partner organizations, solidifying its position as a premier platform for France-GCC economic collaboration.
Bridging ASEAN and the Gulf cooperation council
The 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit held in Kuala Lumpur, Malaysia, from 26 to 27 May 2025, marked a significant step towards deepening ties between ASEAN and the GCC. While inter-regional cooperation is often framed in terms of energy, trade, and investment, the foundations of this relationship are increasingly shaped by people-to-people connectivity, anchored in labour migration, religious devotion, and growing financial linkages. As fast-growing regions, ASEAN and the GCC are forming deeper ties shaped as much by daily human interactions as by strategic interests.
ASEAN, GCC push to increase economic ties
The Association of Southeast Asian Nations (ASEAN) and Gulf Cooperation Council (GCC) agreed on Tuesday to boost bilateral ties during their 2nd summit, hosted in Malaysia’s capital Kuala Lumpur.
GCC leaders agreed to keep furthering strategic partnership with ASEAN against global challenges and attain common economic opportunities, according to Malaysia’s state-run Bernama news agency.
“We want to raise this figure to $180 billion by 2032 because there is huge potential that has yet to be explored in bilateral trade and investment,” Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah said, while referring to the total trade volume amounting to $130.7 billion between the two parties in 2024.
UAE to remain among strongest performers in the GCC : World Bank
The World Bank has warned that escalating tensions between Iran and Israel pose a serious threat to economic stability across the GCC region, potentially derailing growth prospects and intensifying global uncertainty. While the immediate economic impact of the conflict remains difficult to quantify, the bank cautions that the fallout could ripple far beyond energy markets, affecting trade, inflation, investor sentiment, and fiscal stability.
Safaa El Tayeb El-Kogali, the World Bank’s regional director for the GCC, highlighted the risks during the release of the Bank’s latest Gulf Economic Update. She noted that the region remains particularly vulnerable to geopolitical shocks, given its centrality to global oil markets and shipping routes. “Any conflict, especially in this region, can have long-lasting and adverse effects,” she said, pointing to rising shipping costs, increased inflationary pressures, and mounting investor caution as potential consequences.