A agreement between Oman and Etihad Rail Company and Mubadala Investment Company was signed to fund the construction of the 303 km railway network connecting Oman and the United Arab Emirates.
$3 billion is the estimated worth of the whole investment.
The agreement fits with the two sides’ aims to increase cooperation and investigate investment potential in the rail industry, supporting Oman and Etihad Rail Company in hastening the planning and construction of the UAE-Oman Rail Network.
The cooperation agreement includes formation of working groups and joint committees to benefit from the shared expertise and knowledge, joint efforts in developing economic and financial feasibility studies, in addition to joint investments in the development of the UAE-Oman railway network, and cooperation to enhance the project’s added value.
Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, Suhail Al Mazrouei said: “The agreement will contribute to enhancing and developing the national economy in the UAE and the Sultanate by improving supply chain efficiency, opening new cross-border trade opportunities, and providing safe and sustainable means of transportation via rail for passengers and goods.”
Dr. Bakheet Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala’s UAE Investments platform, commented that the MoU “is designed to explore and unlock new opportunities in the infrastructure, transport, and logistics industries.”
“The strategic partnership with Oman and Etihad Rail Company is aimed at driving economic development and collaboration among both countries as well as creating value for all stakeholders,” he added.
CEO of Oman and Etihad Rail Company, Ahmed Al Musawa Al Hashemi said: “The agreement with Mubadala reaffirms the strategic position of the joint rail network project to achieve its objectives and ambitions.”
The signing of the agreement follows the establishment of the Oman and Etihad Rail Company, a joint venture established by Oman Rail and Etihad Rail.
The UAE-Oman Rail Network will increase market competitiveness and reduce the overall cost of supply chains.
Moreover, the network will provide trade and investment opportunities for the private sector and new and diverse job opportunities.
It will also enrich tourism activities, improve the competitiveness of the two countries in global trade, and establish their position as logistics hubs that serve as gateways to regional markets.
Passenger trains will run up to 200 km per hour, reducing the time of the journey between Sohar and Abu Dhabi to 100 minutes, and between Sohar and Al Ain to 47 minutes, while the freight train speed will reach 120 km per hour.