Rail Infrastructure: Chinese firms took part in Middle East Rail show

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Countries in the Middle East are set to boost spending on their rail infrastructure. Billions of dollars worth of contracts could be awarded this year, with Chinese firms among those hoping to cash in. Nawied Jabarkhyl has more.

They may be some of the richest countries on the planet. But, most Gulf states don't have widespread train networks. It's something governments here are hoping to change.

JAMIE HOSIE, GENERAL MANAGER MIDDLE EAST RAIL "(We've got) one of the highest GDPs relative to population sizes in the world, and we do know that the backbone of the economy here is in line with these infrastructure projects and transport projects."

According to business intelligence firm MEED, $16 billion of rail contracts are set to be awarded in the Middle East and North Africa this year. The longer-term pipeline of projects could reach well above $200 billion.

NAWIED JABARKHYL DUBAI "Gulf governments have put many of their rail plans on hold in recent years as they've struggled with budget deficits, caused by lower oil prices. But, with Saudi Arabia and the UAE leading the way, the message here is that rail is firmly back on the agenda."

Earlier this month, the United Arab Emirates passed a law to make it easier for the private sector to invest in its railways.

JAMIE HOSIE, GENERAL MANAGER MIDDLE EAST RAIL "There's a level of acceptance with these projects now that we can't just rely on oil to fund these things. So, alternative solutions have been discussed and you know, there's a very big section focused on funding and refinancing of these projects. You know, it certainly works in the favour of international companies coming in."

Several Chinese firms also took part in this year's Middle East Rail show, including state-ownedd giants like CREC. It's hoping to secure dozens of contracts here within the next few years.

FAN PENG, SALES MANAGER CHINA RAILWAY TUNNEL GROUP, CREC "China is accelerating its strategic initiative of One Belt, One Road, promoting the development of countries along the line. And, given our experience in many projects at home and abroad, CREC is very willing to take this important opportunity to bring our technology and talent to the Gulf countries."

Middle Eastern nations are once again determined to ramp up spending on trains. As rail comes back into focus, it could prove the next frontier for China's Belt and Road plans in the region. Nawied Jabarkhyl, CGTN, Dubai.