Saudi Railways Organisation has completed the first test run of its long-awaited Haramain high-speed rail line to a newly-built station at the King Abdulaziz International Airport in Jeddah.
The company posted a video on Twitter on Tuesday evening of the first train arriving in Jeddah. A spokesman confirmed that the test run had been completed, but said he did not have any more details on the matter.
The Haramain high-speed rail line is a 450km network connecting the kingdom’s two holy cities of Mecca and Medina via stations at the redeveloped airport in Jeddah and at King Abdullah Economic City, near Rabigh. It has been designed to reach speeds of up to 360kph.
Designs for the project were completed in 2009 and contracts worth €6.7 billion (Dh28.4bn) were signed in 2011 with the Saudi-Spanish consortium that has built it. Initially, work was meant to be completed under a three-year, fast-track contract but it has subsequently faced a number of delays.
However, last November the Spanish government's minister for public works, Inigo de la Segna, said a new deal had been agreed that would move the project back on track. It is now expected to be completed this year.
The consortium delivering the Haramain project includes several Spanish firms such as the state-owned high speed rail operator Renfe, the consultants Consultrans, the construction company Obrascon Huarte Lain and the rolling stock provider Talgo. Saudi Arabia’s investment company Al Shoula is also a partner, alongside the local contracting company Al Rosan.
Talgo said last month one of its T350 trains had reached a top speed of 310kph on a section of the tracks between King Abdullah Economic City (KAEC) and Medina. A final test is due during which it will attempt a speed of 330kph.
Talgo is providing 35 trains capable of carrying more than 400 passengers each and which are currently undergoing extreme weather testing to ensure they can withstand temperatures of above 50°, as well as desert sands and dust.
Fahd Al Rasheed, the managing director and group chief executive of KAEC), welcomed the progress being made on the rail project, stating that it has "long been integral" to his city's master plan, making it more accessible to a catchment of 10 million people along the kingdom's west coast.
He said the trains would place KAEC within an hour’s travel of both Mecca and Medina, and it would be just 25 minutes from the upgraded airport in Jeddah.
Mr Al Rasheed said its station “is ready for operation and will act as a key transportation node to drive our commercial and leisure developments”, as well as anchoring the city’s main commercial district.
“The Haramain railway will supercharge KAEC’s growth as a premium residential, commercial and lifestyle destination,” he said.
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The Byblos iftar in numbers
29 or 30 days – the number of iftar services held during the holy month
50 staff members required to prepare an iftar
200 to 350 the number of people served iftar nightly
160 litres of the traditional Ramadan drink, jalab, is served in total
500 litres of soup is served during the holy month
200 kilograms of meat is used for various dishes
350 kilograms of onion is used in dishes
5 minutes – the average time that staff have to eat
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
PROFILE OF INVYGO
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