UAE-Oman Rail Link: $3 B Investment Deal Signed To Develop 303-Km Network

A rail network project that seeks to link the UAE and Oman will get underway soon, following a recently signed $3 billion investment deal.

The joint venture between Oman Rail and Etihad Rail, named Oman and Etihad Rail Company, announced Tuesday that it has signed a pact with Mubadala Investment Company to develop the 303-km railway network for a total investment value of $3 billion.

The Etihad Rail Company said the deal will deepen cooperation between the two parties and expedite the planning and development of the project, The National News reported. The agreement was also signed in accordance with the partnership's goal of unlocking more investment opportunities in the railway industry.

Signed by Oman and Etihad Rail Company Chief Executive Officer Ahmed Al Hashemi and Dr. Bakheet Al Katheeri of the UAE Industries Unit of Mubadala's UAE Investments platform, the cooperation agreement involves the creation of technical working groups and joint committees that will share their expertise in the development of rail networks, and conduct economic and financial feasibility studies related to the project.

According to UAE's Minister of Energy and Infrastructure Suhail Al Mazrouei, the development of the UAE-Oman railway network will help strengthen bilateral ties between the two nations across various sectors, including infrastructure, transport, and logistics.

He said it also reflects the UAE and Oman's commitment to establishing strategic partnerships for economic growth and investment.

"The establishment of Oman-Etihad Rail network is an extension of the strategic relations and strong historical ties between the UAE and the Sultanate of Oman, and the foundation of the strong partnership between Etihad Rial and Oman Rail," he said.

"The joint venture will transform the infrastructure, transport, and logistics sectors, and enhance commercial movement and social cohesion, by linking economic, industrial, commercial, and residential centers through the railway network," he added, noting that the deal will contribute significantly to the national economies of both nations by enhancing supply chain efficiency, providing a sustainable means of transportation for goods and people, and offering more cross-border trade opportunities.

For his part, Al Katheeri said the deal will pave the way for the economic development of both the UAE and Oman.

"The strategic partnership with Oman and Etihad Rail Company is aimed at driving economic development and collaboration amongst both countries as well as create value for all stakeholders," he said.

The UAE-Oman transport link was first announced in September.