Reuters quoted United Arab Emirates official as saying that wealthy Gulf States have agreed in principal to extend their multi billion dollar railway project to Yemen on the Arabian Peninsula.

The 6 countries in the Gulf Cooperation Council a loose economic bloc that comprises Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain are spending more than USD 100 billion on various rail projects to ease congestion in the face of poor public transport networks and a growing population.

The Gulf Arab rail network alone will cost USD 20 billion to USD 25 billion as the 6 oil producers seek to create a similar model to Europe's high speed rail system. The 1,940 kilometers railway would connect the 6 Gulf States, each of which would contribute a share of the start up capital. Yemen had asked for the railway is extended over its border with Oman.

The official, who was attending a meeting of Gulf policymakers in Oman, said that "The GCC has accepted in principle to extend the railway link to Yemen from Oman."

Yemen, which is not in the GCC is facing an insurgency in the north where Zaidi Shi'ite Muslims took up arms against the government in 2004, as well as frequent clashes with separatists in the south.

Gulf officials agreed to appoint a single authority for the rail project and approved its design. Dubai opened the initial phase of its USD 7.62 billion metro project in September. Other cities including Riyadh, Mecca and Kuwait are also planning rail systems.

(Sourced from Reuters)