MENA rail supply market to post 3% AGR up to 2021

The MENA region's rail equipment market is expected to record an annual growth rate (AGR) of 3% in the next four years.

The 6th edition of the World Rail Market report – produced by Roland Berger, a global strategy consulting firm, and UNIFE, an association representing the European rail manufacturing industry – notes that the region is keeping pace with Western Europe, which is expected to register a 3.1% AGR for the same period.

In the GCC region, $69bn worth of projects are reportedly under construction. These projects include the 15km extension of the Dubai metro to the Expo 2020 site and the Saudi Land Bridge linking Riyadh to Jeddah.

For the GCC Railway Project, individual member states are said to be assessing the details involved in continuing the project, as well as looking into domestic alternatives. Oman Rail, meanwhile, is reviewing plans for the development of a domestic heavy-haul line that will transport minerals from Thumrait to Duqm Port.

Helmut Scholze, partner at Roland Berger, said: “Despite some setbacks and the economic complexities seen in the past year, the rail market is picking up speed in the Middle East and North Africa. We predict further investments in rail systems and this will lead to significant, long-term growth in the rail equipment market.”

He added that the UAE and Iran will likely prove to be the key growth markets, while Saudi Arabia will stay moderately flat at its current high volume.

Scholze was among the speakers featured at the Middle East Rail 2017, which took place from 7 to 8 March, in Dubai.