The German rail operator Deutsche Bahn has signed a Ôé¼17 billion contract to build rail and underground lines in Qatar and Bahrain.
In the Qatari capital of Doha, a 300km, four-line metro system with 98 stations will be built. There will also be links from Doha to the industrial towns of Ras Laffan and Mesaieed, as well as freight lines to other countries.
An express rail link will connect Doha with the countryÔÇÖs airport.
A high-speed, long-distance train line to neighbouring Bahrain will also be constructed, carrying trains capable of reaching speeds of 350km/h (220mph).
Deutsche Bahn is teaming up with state-owned Qatari Diar Real Estate Investment Co. to form a new company, the Qatar Railways Development Co., which will form the vehicle to carry out the works.
The new company, which will handle a planning budget of Ôé¼700 million, will be 49 per cent owned by Deutsche Bahn and 51 per cent by Qatari Diar.
It is anticipated the works will take around 15 years to complete.
"We are proud and delighted that DB International has been chosen by the Qatari government as the partner for this ambitious infrastructure project,ÔÇØ said CEO R├╝diger Grube in a statement.
ÔÇ£This once again proves that Deutsche Bahn expertise enjoys a great reputation throughout the world. Moreover, especially in the present difficult economic climate, such overseas projects also help to safeguard jobs inside Germany.ÔÇØ
The German Federal Transport Minister, Peter Ramsauer, added: "The signing of this agreement shows that German expertise and German technology in the transport sector are in demand the world over."
The news comes as Qatar, the worldÔÇÖs largest producer of liquefied natural gas, seeks to improve transport links with its neighbours. Other gulf states such as Dubai and Abu Dhabi have also recently channelled large amounts of money into improvements in infrastructure.
Deutsche Bahn hopes that success in Qatar will lead to more contracts in the Arabian peninsula, where hundreds of billions of euros are due to be invested in railway projects over the next 20 years.
Qatar has a population of approximately 1.2 million, with the highest GDP in the worldÔÇö$85,900 per capita.
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