An agreement has been reached between Etihad Rail, Oman Rail, and Mubadala Investment Company to initiate the development of the Omani-Emirati railway network.
Transformative Agreement for Railway Construction
The groundbreaking Omani-Emirati railway network project has been officially approved for construction by Etihad Rail, Oman Rail, and Mubadala Investment Company. During Sultan Haitham bin Tarik's state visit to the UAE, this important agreement was signed, marking a strategic partnership between the two countries.
The signing ceremony of the shareholder agreement witnessed the esteemed presence of 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. This high-profile gathering underscores the commitment of both governments and key stakeholders to propel this ambitious railway initiative forward.
Formerly known as the Oman-Etihad Rail Company, the joint venture has been aptly rebranded as Hafeet Rail, paying homage to the iconic Jebel Hafeet. This majestic mountain range holds profound strategic and historical significance for Oman and the UAE, serving as a natural link between the two nations through its rugged terrain, characterized by mountains, deserts, and distinctive limestone formations.
The envisioned railway network, with a projected investment of US$3 billion, is poised to elevate the UAE and Oman as pivotal gateways to regional markets. By enhancing cross-border connectivity, the network will catalyze economic growth and job creation across diverse sectors in both countries. It will seamlessly integrate commercial ports with railway infrastructure, enabling efficient transportation of cargo, with a single freight train capable of carrying over 15,000 metric tons of goods or approximately 270 standard containers.
Multi-Sectoral Impact and Growth Opportunities
Hafeet Rail's transformative impact extends across various sectors, including mining, iron and steel, agriculture, food, retail, e-commerce, and the petrochemical industry. By facilitating efficient transportation and logistics solutions, the railway network will stimulate growth and innovation, fostering a conducive environment for business expansion and investment.
In addition to their economic significance, the passenger rail services offered by Hafeet Rail will promote social cohesion by connecting population centers and fostering familial ties. With trains capable of reaching speeds of up to 200 kilometers per hour, passengers can traverse distances swiftly, with journeys between Sohar and Abu Dhabi completed in just 100 minutes and between Sohar and Al Ain in a mere 47 minutes. Each train has the capacity to accommodate up to 400 passengers, offering a convenient and sustainable mode of transportation while bolstering the tourism sector through enhanced accessibility and connectivity.