A report by the Oxford Business Group (OBG) suggests that the railway project to link Bahrain, Qatar and the United Arab Emirates will cost $10bn less than originally forecast.

The Peninsula reports that the project, which is part of a massive 2,200-km Gulf railway, should cost around $15bn instead of the $25bn that had been expected.

Construction is due to begin in 2014, and the railway should be up and running by 2017 if all goes to plan.

When finished, the GCC railway will link Kuwait and Oman, with branches to all GCC countries.

The OBG report says that Bahrain and Saudi Arabia signed an agreement in February to begin work on the $4.5bn rail link between the two countries.

The new railway is expected to boost trade between GCC countries significantly, and it will also increase the security of exports to countries around the world, as the railway will allow freight to bypass the Strait of Hormuz.

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Credit: Picture by Mollivan Jon