Saudi Arabia’s multibillion-dollar drive to build a continent-spanning rail network is opening rare headroom for new foreign partners. For Russia—eager to export technology, secure contracts and deepen political ties beyond the reach of Western sanctions—Riyadh’s Vision 2030 tracks could become a steel corridor of opportunity.

Accelerated railway construction as a magnet for partners

Since 2016, Riyadh has turned railways into a pillar of Vision 2030. By the end of the decade the kingdom will invest at least $10 billion to lay almost 3,000 kilometres of new track and modernise existing lines.

The flagship 950-kilometre Landbridge will unite the Red and Arabian seas, turning Jeddah into a major trans-shipment hub. A parallel 300 km/h high-speed line is linking the holy cities of Mecca and Medina, while the regional Gulf Railway will thread Kuwait, Bahrain, Qatar and Saudi Arabia’s eastern provinces into a single 2,177-kilometre spine.

The dual goal is clear: diversify the oil-dependent economy through logistics and lock in the kingdom’s status as a connective hub between Asia, Africa and Europe.

Russian opportunities and the competitive landscape

Such scale offers Moscow a timely opening. Russian Railways (RZD) first received Saudi invitations back in 2005, and in 2019 the Russian Direct Investment Fund, RZD and Saudi Railway Company signed a cooperation agreement covering network expansion and supply of Russian safety systems.

The baton has now passed to Natsproektstroy, contractor for the Moscow–St Petersburg high-speed line, which seeks to bid on upcoming Saudi tenders.

The payoff is threefold: access to a cash-rich market, export of Russian engineering know-how, and reinforcement of political presence in the Gulf Cooperation Council’s leading state.

The macro backdrop is favourable. Since 2022, Russia–GCC trade has climbed to $11 billion, with Saudi Arabia accounting for roughly one-tenth yet holding significant growth potential.

The arrival of the first Russian-origin freight train in late 2023—via the eastern branch of the International North–South Transport Corridor (INSTC)—showed how rail integration can underpin fresh flows of goods, capital and technology.

Extending the INSTC through Bahrain and Saudi ports to the Red Sea, and eventually East Africa, is not yet formalised but is moving from theory to practical discussion.

Competition, however, will be fierce. European consortia (SYSTRA, TSO, Webuild), Chinese contractors (CCEC) and Turkish firms (Gülermak) already dominate key segments.

Saudi tenders favour consortium models that spread risk, finance and expertise, so Russia’s edge must lie in “package” offers—design and build, localised production, concessional funding via RDIF and advanced digital control systems.

Map Source: Business Year and Rail Freight.