Etihad Rail, Oman Rail and Mubadala Investment Company have entered into an agreement to commence the construction of the Omani-Emirati railway network project.
The agreement was signed during the state visit of Sultan Haitham bin Tarik, Sultan of Oman, to the UAE.
Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes’ Affairs, and Chairman of Etihad Rail, were present during the signing of the shareholder agreement.
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The joint railway network, which would require a total investment of US$3 billion, will amplify the UAE and Oman as gateways to regional markets. The network will also pave the way for job creation in various sectors in both countries.
Formerly Oman-Etihad Rail Company, the joint venture will now be known as Hafeet Rail. The name pays homage to Jebel Hafeet that stretches between the Sultanate of Oman and the UAE.
Jebel Hafeet holds strategic significance and historical importance for both countries, serving as a link between the two neighbours through its rugged terrain, which includes mountains, deserts, and unique limestone formations.
The network will facilitate cross-border trade, connecting commercial ports to railways within the two countries. A single freight train journey will be able to transport more than 15,000 tonnes of cargo – or around 270 standard containers.
Hafeet Rail will contribute to the development of various sectors in both countries, such as mining, iron and steel, agriculture and food, retail, e-commerce, and the petrochemical sector.
The passenger rail services will connect population centres, fostering social and familial cohesion, while supporting the tourism sector. The passenger train can reach speeds of up to 200 kilometres per hour, covering the distance between Sohar and Abu Dhabi in 100 minutes, and Sohar and Al Ain in 47 minutes. One train can accommodate up to 400 passengers.