September 07, 2008

GCC transport sector set for rapid growth

The Peninsula quoted Mr Abdel Rahim Hassan Naqi secretary general of the federation of GCC Chambers as saying that the transport sector in the GCC contributes between 8% and 12% of its GDP or some USD 70 billion annually.

Mr Naqi said that the transport sector in the GCC offers tremendous investment opportunities in view of a multi billion budget earmarked to the sector for the forthcoming years. He pointed out that the sector is expected to witness rapid growth and attract large investments coinciding with the GCC common market, noting for instance that the proposed trans Gulf railway network is to cost between USD 2.4 billion and USD 7.4 billion.

Efforts are being made to open up the sector to joint investments as well as other joint projects such as allowing national carriers to sale travel tickets directly without resorting to an agent or local sponsor in the GCC member states.

These efforts are also focused on increasing flights between major cities in the GCC, common insurance policy for national airlines which will help save money and also joint purchase of jet fuel in stations around the world.

Mr Naqi further added that GCC states are also increasing efforts to set up common measurement standards for road and highway construction in the GCC, to form a GCC road engineering society and issuing common regulations for GCC ports.