A major expansion of one of Bahrain’s busiest transport corridors is moving a step closer as the Shura Council is set to endorse plans to secure international financing for the next phase of the Shaikh Jaber Al Ahmad Al Sabah Highway upgrade.
The Shura Council financial and economic affairs committee has recommended for approval a draft law to ratify a financing agreement attached to Decree No 30 of 2025, paving the way for a major road expansion project valued at BD128.6 million.
The agreement will see the Kuwait Fund for Arab Economic Development contribute concessional loans to support the second phase of the highway development.
Committee chairman Khalid Al Maskati described the highway upgrade as one of Bahrain’s most important infrastructure projects aimed at strengthening economic growth and improving traffic flow between major industrial and residential areas.
“This project represents a strategic investment in Bahrain’s infrastructure and transport network,” he said.
“It will significantly improve traffic movement along one of the kingdom’s most important corridors linking Manama with Sitra, Ma’ameer, Eker and the Nuwaidrat industrial area.”
The highway also connects to key economic sites including the Bapco Refining and Alba, as well as several large industrial and commercial zones.
The project aims to expand the highway from three to four lanes in each direction over an 11km stretch running between Um Al Hassam and the Nuwaidrat junction. It will also include the construction of five flyovers, new service roads on both sides of the main carriageway and upgraded infrastructure such as stormwater drainage, lighting and road markings.
In addition, Shaikh Salman Al Fateh Avenue, which branches off from Shaikh Jaber Al Ahmad Al Sabah Highway, will be expanded to four lanes along a 2km stretch.
Officials say the development will help reduce congestion, shorten travel times and improve road safety while supporting the movement of goods and commuters between Bahrain’s key economic hubs.
Mr Al Maskati
Mr Al Maskati said the committee supported the agreement due to the favourable financing terms offered by the Kuwaiti fund.
“The loan is considered highly concessional compared with commercial borrowing, with an interest rate of just 3.5 per cent and a repayment period of up to 20 years, including a grace period of seven years,” he explained.
The Kuwait Fund will provide up to 70m Kuwaiti dinars (around BD85.9m) through seven separate annual loans, each valued at 10m Kuwaiti dinars.
This will cover about 66pc of the project’s total cost, while the remaining BD42.7m will be funded through Bahrain’s state budget.
Mr Al Maskati said the project aligned with Bahrain’s long-term development strategies and the goals of Bahrain Economic Vision 2030.
“Investing in modern and efficient infrastructure is a key pillar of sustainable economic development,” he said.
“This highway plays a vital role in connecting residential communities with major industrial zones and economic facilities, while also improving access to the Sitra housing project and surrounding areas.”
The committee also confirmed that the draft law complies with constitutional provisions governing public borrowing and international agreements.
It has been unanimously approved by Parliament. If approved by the Shura Council, the law will ratify the framework agreement allowing the financing arrangements to formally take effect and paving the way for the project’s implementation.
mohammed@gdnmedia.bh
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