Oman and the UAE’s joint venture company, the Etihad Rail Company, have signed a partnership agreement with Abu Dhabi’s Mubadala Investment Company to aid the development of a 303-kilometre railway network connecting Oman’s Sohar Port with the UAE’s National Rail Network. The overall investment value of this project is approximately $3 billion (AED 11 billion).
The agreement provides for the formation of working groups and joint committees for the exchange of expertise, knowledge, and economic and financial feasibility studies. Additionally, there will be joint investments in the development of the network. The partnership aims to support Oman and Etihad Rail Company in accelerating the planning and execution process of the UAE-Oman rail network.
This project, which was announced in September 2022, will reduce travel time between Sohar and Abu Dhabi to 100 minutes, with passenger trains running up to 200 km per hour. Meanwhile, freight trains will run up to 120 kph. It will also reduce travel time between Sohar and Al Ain to 47 minutes. The railway network will link economic, industrial, commercial, and residential centres in the region.
Suhail Al Mazrouei, the UAE Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, stated that this joint venture will transform the infrastructure, transport, and logistics sectors. It will enhance commercial movement and social cohesion, opening new cross-border trade opportunities, and providing safe and sustainable means of transportation for passengers and goods. The Oman and Etihad Rail Company is a joint venture between Oman Rail, the national developer and operator of railway networks in Oman, and Etihad Rail, the developer and operator of the UAE’s National Rail Network. The agreement will contribute to enhancing the national economies of both countries by improving supply chain efficiency.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.