Egypt and Saudi Arabia plan $4B Red Sea rail deal

Egypt and Saudi Arabia are reportedly nearing an agreement to launch a high-speed rail connection, the first of its kind between the two Arab nations, according to a June 4th report by The New Arab.

Experts from both countries view the project as a strategic step toward boosting bilateral trade and streamlining the movement of people across borders.

The proposed railway would link Egypt’s Red Sea resort city of Sharm el-Sheikh with Ras Alsheikh Hamid in Saudi Arabia.

The rail project is expected to include a bridge spanning the Red Sea, with the route passing near Tiran Island. Tiran, along with Sanafir—another nearby island—had been under Egyptian administrative and military control for decades until their controversial transfer to Saudi Arabia in 2017.

The handover sparked a series of legal challenges from Egyptian citizens, several of which remain under review by the country’s judiciary.

According to Egypt’s transport minister, technical studies for the proposed railway have already been finalised, bringing the ambitious cross-border project a step closer to reality.

Originally proposed by Saudi Arabia’s King Salman during a 2017 visit to Egypt, the cross-border rail link is projected to cost approximately $4 billion.

“This is a very important project that will reflect very positively on the economies of both Egypt and Saudi Arabia once it is completed,” Egyptian economist Khaled al-Shafie told The New Arab.

The planned railway would mark the first direct connection between Arab nations on the African and Asian continents, potentially serving as a significant step toward greater economic integration.

Trains on the route are expected to cover the distance—estimated at seven to ten kilometres—within minutes, offering a far quicker alternative to current travel options such as buses or Red Sea ferries.

This rail link forms just one part of a broader transport integration initiative between Egypt and Saudi Arabia, an idea also proposed by the Saudi king during his visit to Egypt eight years ago.

During that period, Egyptian President Abdel Fattah al-Sisi proposed naming the project the “King Salman Bridge.” It was envisioned as a key infrastructure development to help streamline the annual movement of an estimated $200 billion worth of cargo between the two nations.

Beyond trade, the bridge is also expected to support the flow of labour and pilgrims between Egypt and Saudi Arabia—two countries whose bilateral trade saw a 29 percent increase in 2024, reaching $15.98 billion.

The New Arab/ Maghrebi.org