Runaway Train

Driving factors
Notwithstanding recent economic turbulence, it is still important to consider
what the driving factors for development are in the GCC and MENA regions. This
has never been more relevant, as it is an indicator of whether there is a strategic
shift in government thinking and whether governments are still prepared to
deliver infrastructure projects that are not driven by the direct profitability of
the project itself, but driven by a wider need to serve their people by diversifying
sources of GDP (creating a more robust economy that is less reliant on oil and gas
revenues) and by creating education and job opportunities for their young and
growing populations.
The driving factors relevant to the current market trends include the following:
• increasing recognition of the need for GCC governments to diversify their economies away from
dependence on oil, and rail projects are considered to be an efficient means of boosting trade,
tourism and the wider commercial landscape;
• populations are growing across the region and are becoming increasingly urbanised, which, in
turn, is placing pressure on the road networks of major cities and leading to significant road-traffic
congestion (which, ultimately, damages economic activity and social cohesion);
• increased employment opportunities, including roles designed for the local population, by creating
jobs in the rail industry;
• increasing accessibility to remote areas of the MENA region (which will, in turn, increase commercial
opportunities, especially for areas that are rich in natural resources but have traditionally been
difficult to exploit) and increased growth in industries such as mining, transit and supply services
and other heavy industries;
• increasing environmental awareness in line with global trends, as rail transport is seen as
a more sustainable and a cleaner form of public transport compared with the current reliance
on road transport;
• improving connections with Europe to the west and Asia to the east, and, among the GCC countries,
saving both time and expense and increasing the potential market for trade between GCC member
states and the wider world; and
• attracting and delivering successful international events that will be experienced by people from every
continent of the world, such as the FIFA World Cup 2022 in Qatar and the World Expo 2020 in Dubai.
All of the above will continue to drive forward the delivery of transport projects in the face of a new
financial reality.
4 Runaway train | January 2017