The transport links between Saudi Arabia and Bahrain have long played a crucial role in fostering economic, social and cultural ties across the Gulf region. The King Fahd Causeway has been a vital artery for trade and travel since its opening in 1986. The establishment of the King Fahd Causeway Authority in the early 2000s has led to significant upgrades, reflecting the deepening economic ties between the two countries. Future projects are set to enhance this connectivity. Foremost among these is the King Hamad Causeway project, which aims to introduce a new 25-km bridge featuring dual-purpose road and rail links. This initiative represents a step forward in regional integration and economic collaboration between the two kingdoms.
Renewed Connectivity
The new King Hamad Causeway project is poised to further strengthen trade and the movement of people and goods between Saudi Arabia and Bahrain, support economic diversification and enhance mobility across the GCC. Expected to cost $3.5bn, the endeavour involves the construction of a four-lane, 25-km bridge that will accommodate both road and rail traffic – significantly expanding the capacity of the existing road link. Indeed, in 2022 the existing King Fahd Causeway handled approximately 8.2m vehicles in total, up from 2.8m and nearly 3.6m during the pandemic years of 2020 and 2021, respectively. Congestion often leads to delays and limits the King Fahd Causeway’s efficiency. The planned causeway – which will run directly alongside the older bridge – aims to alleviate this bottleneck. The project is led by King Fahd Causeway Authority – a joint venture between Saudi Arabia’s Ministry of Transport and Logistic Services and Bahrain’s Ministry of Transportation and Telecommunications, although it is being developed on a public-private partnership model.
The dual-purpose nature of the King Hamad Causeway is set to integrate seamlessly with regional rail networks, which are a critical component of the GCC Railway project. This integration is expected to enhance Saudi Arabia’s logistical capabilities, facilitating a smoother and faster flow of goods and passengers across the Gulf. The rail link alone is projected to handle up to 3m passengers and 600,000 twenty-foot equivalent units of container freight annually by 2030, thereby considerably boosting both trade and tourism between Saudi Arabia and Bahrain.
The King Hamad Causeway is expected to contribute to both countries’ GDPs by improving trade efficiency and reducing transport costs. As of August 2024 the project’s timeline was still under review, with no update available as of November 2024. Nevertheless, the King Hamad Causeway represents a critical investment in the future of Saudi Arabia and Bahrain, underscoring both countries’ commitment to Gulf connectivity.
Shoring Up Trade Ties
Reflecting the strong ties between the two kingdoms, in March 2024 their respective ministers of transport signed two memoranda of understanding (MoUs) signalling their ongoing commitment to strengthening collaboration in transport – with an emphasis on joint road maintenance projects. The MoUs outlined plans to better facilitate the exchange of expertise between the two nations, establish joint training programmes and seminars, and pursue collaborative research and development projects. While at the time of publication no new initiatives had yet emerged, the agreements reflect the fact that Saudi Arabia and Bahrain are continuously exploring new opportunities to work together across industries.
Indeed, in March 2024 the two nations had signed another MoU focused on jointly developing social housing and improving urban planning. As with the transport MoUs, this earlier agreement encompassed the potential establishment of joint technical committees and the exchange of expertise. In October 2023 Saudi Arabia’s minister of transport and logistics announced that the Kingdom planned to invest SR1.6trn ($426.7bn) through similar partnerships with neighbouring countries as well as with private sector entities in Saudi Arabia.
Read More from OBG
