INTERVIEW: Virgin Hyperloop’s vision for a connected Gulf

Illustration by Luis Grañena
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Updated 22 November 2020
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INTERVIEW: Virgin Hyperloop’s vision for a connected Gulf

  • High-tech project’s Middle East chief explains why Saudi Arabia is central to its global ‘moonshot’ plans

Living in Abu Dhabi and commuting to work in Riyadh? Embarking at Jeddah for a two-hour journey to Dubai? A day trip from Riyadh to Makkah?

These futuristic notions could become reality in the age of the hyperloop, the fast-transit technology that is set to change everyday life in the Middle East, and the rest of the world, over the next decade.

Harj Dhaliwal, managing director for the Middle East and India at the Virgin Hyperloop Group, is more convinced than ever that hyperloop technology is the transport system of the future after the successful first passenger-carrying tests at a desert track in Nevada a couple of weeks ago.

“The US secretary for transport (Elaine Chao) said hyperloop is the most exciting thing happening to transportation today, and you have to agree with her. As this technology becomes proven, high-speed rail will become a thing of the past,” he told Arab News.

Coming from Dhaliwal, that is quite a claim. His career, originally focusing on transport projects in the UK, has evolved into developing advance rail systems in the Middle East, including the Etihad Rail project in the UAE and the Riyadh Metro in Saudi Arabia, for the US group Parsons. But hyperloop will change the fundamentals of travel for ever, he believes.

“Why would anybody want to invest billions in technology that is basically steel wheel on steel rail, effectively going back 150 years, when they have the potential of hyperloop?” he asked.

Dhaliwal concedes that rail will still have a role in the region — in the movement of heavy bulk goods and petrochemicals, for example — but hyperloop is the technology of the future, and nowhere more so than in Saudi Arabia.

Earlier this year, the company signed a deal with the Kingdom’s transport ministry for a study of hyperloop’s potential, involving the building of a test-track facility and other technology infrastructure.

That agreement could herald a closer financial relationship between Saudi Arabia and Virgin Hyperloop, which so far has raised $400 million from investors including DP World, the UAE ports and logistics company, but which needs more resources to fund the next stages of its evolution.

Saudi Arabia will be one of three strategic centers for Hyperloop, with another in India as well as the US. The company recently announced plans to build a $500 million testing and certification center in West Virginia. 

“We envisage a similar facility in Saudi Arabia to connect the Kingdom and the wider Middle East, but also to act as a hub for manufacturing, technology and materials. Europe is not that far away (from Saudi Arabia) and you could export the technology and materials there,” he said.

The strategy is in line with the aims of the Vision 2030 diversification plan, he said, which seeks to build a technology-driven economy less dependent on oil revenues, and create high-value jobs for the Kingdom’s citizens.


BIO

Born: UK 1964

Education: Bachelor of engineering, Nottingham Trent University

Career

  • Various roles in UK transport projects
  • Project director, Qatari Diar
  • Senior vice president, Parsons Corp.
  • Managing director, Middle East and India, Virgin Hyperloop

Dhaliwal sees hyperloop playing a crucial role in linking some of the mega-projects planned under the reform plan, such as the technology metropolis under construction at NEOM in the Kingdom’s northwest, the vast theme park planned at Qiddiya south of Riyadh, and the maritime hub at the King Abdullah Economic City on the Red Sea.

He has also been working closely with the King Abdullah University of Science and Technology, near Jeddah, on detailed aspects of the hyperloop technology.

“We are working to understand the transport requirements of the Kingdom. As it diversifies, it increases the opportunities for companies like ours to work in partnership with it as it looks to become a leader in technology sectors.

“There are lots of spin-offs in other technology areas, such as batteries, electric vehicles, solar and artificial intelligence. It is not just about transport from A to B, there are boundless opportunities for growth in manufacturing and knowledge,” he added.

The Nevada test was a milestone in the technology’s development.

Jay Walder, the Virgin Hyperloop CEO, said: “This is a step of historical significance. I don’t think you can overstate it. This is a moonshot moment. I have no doubt this will change the world.”

Dhaliwal took a more understated view. “It was the culmination of two years’ work. Since we began, lots of people were asking me when would people actually ride in it. Well, we have proved that levitation in a vacuum environment works, and we can safely transport passengers in a pod in a vacuum that levitates,” he said.

Other competing groups are also developing vacuum-tube travel similar to hyperloop, and running tests in various parts of the world, but the Nevada trial was the first that carried humans in the pods inside the sealed tube. The original idea for the technology came from Elon Musk, the Tesla billionaire.

Two Virgin Hyperloop employees traveled the length of a 500-meter test track in 15 seconds, reaching a speed of 172 kph.

“It felt not that much different than accelerating in a sports car,” one said. The speed was limited by the length of the test track, but Virgin Hyperloop has ambitions to eventually move people and goods at more than 1,000 kph.

That is about the same speed as a commercial jet cruises at 30,000 feet, and it is no surprise that Dhaliwal uses the terminology of aircraft flight — banking, rolls and pitch — to describe the performance of the vehicle in motion.

Safety at such speeds is a prime concern, and Dhaliwal and other Virgin Hyperloop executives spend a lot of time in talks with regulators and certification officials as they work toward proving the technology is passenger-worthy.

There is no global standard for hyperloop travel, so the technology and its associated infrastructure is developing its own rules it progresses, mixing mainly US and European regulations, along with local requirements in the Middle East.

“As a company, we’ve done what we had to do to get the regulators and authorities talking to the industry,” he said.

While all the attention was on the landmark first passenger ride, Dhaliwal also highlighted the cargo-carrying capability of hyperloop, especial when speed and efficiency are invaluable for the transport of high-value and perishable goods.

“The pods can join up to create a convoy, which is by far the most efficient way to transport goods at high speed, and then decouple electronically, then come together again to continue the next part of the journey,” he said.

The ability to move high-value goods was one of the things that attracted DP World, the majority shareholder in Virgin Hyperloop. The UAE company has plans for advanced logistics systems in its Jebel Ali hub, and between other centers in the Middle East and elsewhere via its CargoSpeed operation. Sultan Ahmed bin Sulayem, the chairman of DP World, is also chairman of Virgin Hyperloop.

Virgin, the business run by entrepreneur Richard Branson, is a minority investor and also represented on the board. “Virgin is an intrinsic part of the business and we still get a lot of support from them,” Dhaliwal said.

At some stage, Virgin Hyperloop will be looking to top up the $400 million investment it has raised so far for the expensive business of building and operating more test facilities and, ultimately, for its first functioning service, though this is still some way off, possibly by the end of the decade.

“The amount we’ve raised is exceptional for a startup that is only six years old, but, yes, we will need more investors and partners. We can always use more,” he said.

With its emphasis on advanced technology and job creation, Virgin Hyperloop looks a natural for Saudi Arabian investors. The Public Investment Fund, the Kingdom’s growing sovereign wealth fund that is behind the mega-projects, has prioritized high-tech and automation in its plans to aid the economic diversification strategy.

“We’re engaged with the government in Saudi Arabia and with the people who run the big projects. If there was an opportunity for investment, we would be very keen to develop that and that’s where we’re heading,” Dhaliwal said.

Assuming the hyperloop technology lives up to its promise — and the Nevada passenger tests were a big step toward that — it could be a game-changer in Saudi Arabian logistics and transportation, as well as a significant element in the Vision 2030 diversification plan.

“When I came to Virgin Hyperloop, I had this vision for a connected Gulf, for creating a ‘virtual region’ where time and distance was no longer a barrier to employment and development. That vision has not waned,” Dhaliwal said.


GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII

Updated 20 February 2026
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GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII

RIYADH: Global investors can find a “safe harbor” in the Gulf Cooperation Council as the bloc’s public-private partnerships pipeline offers “compelling” opportunities, according to a new report.

The latest document from the Future Investment Initiative Institute highlights how economies in the region are currently driving the next wave of PPP growth. 

It cites findings from Partnerships Bulletin, which ranks Saudi Arabia as second in the global emerging markets pipeline for PPP projects up to July 2025, and also places Dubai in the top 10.

While that analysis claims the Kingdom has 98 PPP projects either formally published or announced, FII says Saudi Arabia has a further 200 currently awaiting approval.

The findings align with the goals outlined in the Kingdom’s National Privatization Strategy, launched in January, which aims to raise satisfaction levels with public services across 18 target sectors, create tens of thousands of specialized jobs, and exceed 220 PPP contracts by 2030. 

The strategy also aims to increase private sector capital investments to more than SR240 billion ($63.99 billion) by 2030.

The FII report says that around 90 percent of FDI into Saudi Arabia now flows into non-oil sectors, from advanced manufacturing and tourism to green energy and digital infrastructure. 

“That shift reflects deliberate policy choices to open markets, standardize regulatory frameworks and use public capital to de-risk new value chains,” says the document, adding: “The result is a kind of safe harbor in an otherwise low-growth, high-uncertainty world.”

It continues: “While global FDI has stagnated or declined in many regions, the GCC’s pipeline of planned infrastructure and industrial projects now exceeds $2.5 trillion, according to Boston Consulting Group data, with PPPs playing a central role in structuring and financing them. For global investors searching for yield, diversification and inflation-linked income, this represents a compelling proposition.”

Commenting on the FII Institute report, Sally Menassa, partner at international management consulting firm Arthur D. Little, said PPPs are a strategic necessity for delivering infrastructure at speed and scale, and described Saudi Arabia’s pipeline as a “powerful execution and financing tool.” 

She added: “The Kingdom’s PPP momentum must remain focused on impact, value creation and execution excellence. PPPs should not be viewed merely as a funding mechanism, but as a structural tool to enhance infrastructure performance, attract investment and support sustainable economic growth in line with Vision 2030.” 

Menassa said that Saudi Arabia’s National Privitization Strategy marks a shift from a project-by-project approach to institutionalization of efforts and value creation.

“By clarifying sector priorities, strengthening project selection criteria, and formalizing governance and investor pathways, the Strategy reduces uncertainty. This clarity enhances investor confidence and improves pipeline quality,” said the Arthur D. Little official. 

Sally Menassa, partner at international management consulting firm Arthur D. Little. Supplied.

She added: “PPP and privatization efforts in Saudi Arabia are not about divestment or the state shifting execution to the private sector, it is really about becoming more productive as a nation. It enhances efficiency, raises service standards, mobilizes private and SME participation, and attracts capital.” 

Menassa further said that the strategy could help the Kingdom achieve stronger fiscal sustainability and higher private sector GDP contribution, both of which are critical components to accelerate the Kingdom’s economic transformation under Vision 2030.

Vijay Valecha, chief investment officer at Century Financial, believes input from the private sector across all stages, from design to construction and operations, improves the efficiency of project delivery and long-term operations in Saudi Arabia. 

“Tighter governance through centralized management at the National Center for Privatization and PPP and a more streamlined process, including template contracts, a clearer regulatory environment, and a transparent pipeline, is likely to improve delivery speed,” said Valecha. 

He added: “This means faster delivery of big projects like Red Sea resorts or Neom, with private firms handling operations to drive innovation. Ultimately, the strategy supercharges diversification by making the private sector the main engine of growth, aligning perfectly with Saudi Arabia’s push for a vibrant, non-oil economy.” 

The FII Institute added that the global flow of FDI is increasingly concentrated in the Gulf Cooperation Council region, driven by ambitious national transformation agendas and deep pools of sovereign wealth.

Tony Hallside, CEO of STP Partners, outlined several factors that are boosting the PPP landscape in the region, which include large infrastructure demand from Vision-level programs and urbanization. 

“Government frameworks that standardise PPP procurement are making projects bankable. Strong regional capital pools and sovereign support will mitigate risk and attract global players. In the GCC, Saudi Arabia’s pipeline itself is one of the largest in the Middle East, indicating strong investor interest,” added Hallside. 

Underscoring the role of growing PPP in Saudi Arabia, the FII report said: “A decade ago, the Kingdom’s solar capacity was negligible, despite its vast solar resource. Through early anchor investments, long-term power purchase agreements and support for national champions, the state seeded a competitive renewables market that now attracts global players on purely commercial terms.” 

Valecha said that clearer PPP laws, standardised contracts and dedicated PPP units have reduced execution risks and made projects more bankable for global infrastructure funds and developers in the GCC region. 

He added that rapid urbanization, a young and growing population, rising data center power demand and energy transition projects create predictable, long-duration cash flows in the region. 

“This combination of policy support, fiscal necessity and structural growth is why the GCC is emerging as one of the fastest-growing PPP markets globally,” said Valecha. 

Vijay Valecha, chief investment officer at Century Financial. Supplied

Key Saudi PPP projects

Yanbu 4 Independent Water Project - supplying water to Medina and Makkah

Location Yanbu, Red Sea coast

Companies involved: Engie, Mowah, Nesma, Saudi Water Partnership Co.

Cost: $826.5 million

Expected delivery date: Operational as of 2024

Hadda Independent Sewage Treatment Plant

Location: Makkah Province

Companies involved: Metito Utilities, Etihad Water and Electricity, SkyBridge Limited Co., Saudi Water Partnership Co.

Expected delivery date: 2028 

As Sufun Solar PV Independent Power Project

Location: Hail region

Companies involved: TotalEnergies, Aljomaih Energy & Water, Saudi Power Procurement Co.

Expected delivery date: Expected to connect to the grid in 2027

Construction of greenfield international airports

Location: Taif, Abha, Qassim, and Hail

Companies involved: Currently in the planning stage; investors are being sought

One-Stop Station Project

Location: Intercity road network across the Kingdom

Companies involved: Saudi Arabia’s Roads General Authority and National Center for Privatization & Public-Private Partnership announced a full list of qualified bidders in February.

King Salman Park

Location: Riyadh

Companies involved: King Salman Park Foundation, Ajdan Real Estate, Sedco Capital

Cost: $1 billion

Project: Madinah-3, Buraydah-2, and Tabuk-2 Independent Sewage Treatment Plants

Location: Madinah, Buraydah, and Tabuk

Companies involved: Acciona Agua, Tawzea, Tamasuk, Saudi Water Partnership Co.

Cost: $627 million combined

Riyadh Metro Line 2 Extension

Location: Riyadh

Companies involved: Royal Commission for Riyadh City, Arriyadh New Mobility Consortium, led by Webuild. Riyadh Metro Transit Consultants (JV between US Parsons and France’s Egis and Systra) as project management and construction supervision consultant.

Cost: Up to $900 million

Expected delivery date: 2032


The crucial role of emerging markets

According to the FII Institute report, the ability to deliver resilient infrastructure, expand digital connectivity and accelerate the energy transition will increasingly depend on the strength and legitimacy of PPPs, as fiscal space tightens and investment needs rise. 

FII estimates a $5 trillion global infrastructure financing gap by 2040. It also points to significant regional shortfalls, including an estimated $3.7 trillion gap in the US and an annual $130 billion to $170 billion gap across Africa. In this context, PPPs are moving from a transactional procurement route to a central model for financing and delivery.

The report highlighted that emerging markets, including Saudi Arabia, are currently driving the next wave of PPP growth, with spending across low-and middle-income countries reaching $100.7 billion in 2024, up 16 percent year on year, according to figures from the World Bank. 

Moreover, emerging markets now represent around 61 percent of global PPP activity by gross domestic product share.

According to Partnerships Bulletin’s findings up to July 31 2025, the Philippines leads the emerging-market pipeline with 230 projects, followed by Saudi Arabia with 98, Kyrgyzstan with 80, Bangladesh with 71, and Peru with 54 projects.

Greece has 42 projects in the pipeline, followed by Dubai at 28, Kenya at 25, Colombia at 24, and Pakistan at 14. 

PPP: An engine of growth

When capital was cheap, PPPs were often treated as an optional extra – a way to shift specific projects off the public balance sheet, or to import private-sector efficiency into construction and operations, the FII report said. 

However, now, nations consider PPPs as a central hub of their economic strategy, as they enable the state to stretch every dollar of public investment using private capital, while retaining strategic control over what gets built, where and to what standard.

“The real differentiator is complexity. When a project presents significant financial uncertainty or unpredictable demand, or if there’s a high level of climate exposure or technological risk, a PPP can give leaders the tools to manage those issues without slowing things down,” said Bob Willen, global managing partner and chairman of Kearney, said in the FII report. 

Erik Ringvold, chief business development officer at Regional Voluntary Carbon Market Co., was quoted in the report as saying that carbon markets will benefit through PPPs, as deepened public-private partnerships could help achieve progress toward national emissions targets, while simultaneously creating economic opportunity and catalyzing new green industries. 

“Saudi Arabia has made large strides toward an emissions compliance system, with an operational carbon standard in place, and an emissions trading system announced to be launched over the coming few years,” said Ringvold. 

He added: “At VCM, we see a clear future carbon vision for Saudi Arabia. One ecosystem. One marketplace. One iconic collaboration – with the PPP model at the heart of its success.” 

PPPs for investors and citizens 

For investors, infrastructure-backed PPPs offer long-duration, often inflation-linked cash flows at a time when public markets are volatile and dominated by a narrow set of mega-cap technology stocks. 

For citizens, well-designed PPPs can mean better services, more resilient infrastructure and faster progress toward climate and development goals, without unsustainable tax rises or austerity. 

FII, however, cautioned that public consent is becoming decisive. Across seven countries, only 23 percent of citizens agree that PPPs “equally benefit everyone”, compared with 41 percent of business and government leaders.

Tony Hallside, CEO of STP Partners. Supplied

Hallside said that public consent hinges on transparency, accountability, and visible service outcomes. 

He added that governments should publish clear procurement frameworks, communicate cost-benefit and performance expectations in plain language, and measure user satisfaction and service quality over time — “reinforcing that PPPs deliver tangible improvements in infrastructure and services.” 

Menassa echoed similar views and said that communication with the public is not sufficient, but the performance and execution phase holds the key to PPP projects. 

“Winning public opinion for PPPs is rather a marathon not a race. It starts with building awareness and trust by providing transparency and demonstrating value for money, ensuring affordability and service quality of public services is maintained through strong regulatory oversight, and ensuring competitive, transparent procurement processes,” added Menassa. 

According to the Arthur D. Little official, the public must see tangible improvements in service reliability, efficiency and accountability, and acceptance will follow.

“The world can’t afford to delay the infrastructure and energy transition investments that will determine prosperity – and planetary stability – for decades to come. Nor can it fund them through public budgets alone. Financing the future is, by definition, a joint endeavour,” added the FII report.