Oman and the Etihad Rail Company recently signed a cooperation agreement with Mubadala Investment Company, a sovereign investor in Abu Dhabi, to support the development of the 303km railway network connecting Oman and the UAE. With an overall investment value of USD 3 billion, the passenger trains are expected to run up to 200 km per hour, reducing the travel time from Sohar to Abu Dhabi to just one hour and 40 minutes and from Sohar to Al Ain to 47 minutes. Meanwhile, freight trains are expected to run up to 120kph.
The partnership with Mubadala Investment Company will help both parties explore investment opportunities in the railway sector and strengthen cooperation to support the Oman and Etihad Rail Company in accelerating the planning and execution process of the UAE-Oman Rail Network. The cooperation agreement includes the formation of working groups and joint committees to benefit from shared expertise and knowledge, joint efforts in developing economic and financial feasibility studies, joint investments in the development of the UAE-Oman railway network, and cooperation to enhance the project’s added value.
The establishment of the 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 Rail and Oman Rail. 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.
The signing of the agreement follows the establishment of the Oman and Etihad Rail Company, a joint venture established by Oman Rail, the Sultanate’s national developer and operator of railway networks, and Etihad Rail, the developer and operator of the UAE’s National Rail Network, under the agreement signed last September between the two companies on the sidelines of the visit of the UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan to Oman.
The UAE-Oman Rail Network will increase market competitiveness and reduce the overall cost of supply chains due to its increased efficiency compared to other modes of transport. The network will also provide trade and investment opportunities for the private sector, new and diverse job opportunities, training national human resources, enriching tourism activities, improving the competitiveness of the two countries in global trade, and establishing their position as logistics hubs that serve as gateways to regional markets.
