A new era in bilateral ties between UAE and Oman
Etihad Rail and Oman Rail establish a joint venture to build and operate a railway network linking Sohar Port to the UAE National Rail Network
The joint network bolsters the strategic and historic relationship between United Arab Emirates and the Sultanate of Oman.
Etihad Rail, the developer and operator of the UAE national railway network, signed an agreement to establish the Oman-Etihad Rail Company, a joint venture co-owned by the two countries, with a total value of 3 billion USD. The joint venture will be responsible for designing, building, and operating the railway network that connects the Sohar Port with the UAE National Rail Network.
The agreement was signed by Shadi Malak, CEO of Etihad Rail and Eng. Abdulrahman bin Salim Al-Hatmi, Group CEO of Oman's state-owned logistics company ASYAD.
Under the terms of the agreement, the new company will lay the groundwork and workplan for the project, including its financial mechanisms and schedule. The company will also handle the design, development, and operation of the rail network, which connects Sohar and Abu Dhabi, in line with the criteria and standards of the two countries.
“In line with the vision and directives of our wise leadership, we are delighted to start this partnership with Oman Rail, which heralds a new chapter of collaboration and prosperity between both countries. The agreement outlines a strategic roadmap for a sustainable project which will contribute to bolstering the solid relations between the UAE and Oman, and will play an instrumental role in facilitating national and regional trade by connecting the UAE National Rail Network with Sohar Port.”
His Excellency Shadi Malak
CEO of Etihad Rail
“The joint railway project will bring about many strategic, economic, and social benefits. These include supporting and diversifying the national economy, connecting population and industrial centres in the two countries, developing infrastructure, improving the quality of life, strengthening social and familial cohesion, enhancing and organising the logistics sector, enhancing the tourism sector, and supporting the implementation of national strategic initiatives in both countries”
Group CEO of ASYAD Group
Al-Hatmi said that the project will be a high-quality addition to the logistics sector, and will stimulate various industrial sectors and economic activities by providing promising commercial and investment opportunities for the private sector, and supporting integration among port activities in the two countries.
The two parties will ensure that the project is designed according to the best international specifications, reducing cost and time, improving the efficiency of travel between the two countries, and setting the train speed.
The project will generate many strategic, economic, and social benefits.
The joint railway network between United Arab Emirates and the Sultanate of Oman will drive the growth of the national economy in both countries. It will also improve supply chain efficiency and facilitate cross-border trade by linking commercial ports to the railway network. It will also boost market competitiveness and reduce the total cost of supply chains, due to its high levels of efficiency compared to other means of transportation.
General questions about Oman-UAE Railway Network Project and its technical specifications
The Oman-UAE Railway Network Project, which connects the capital of the UAE, Abu Dhabi and Sohar in Oman, is an extension of the historic and strategic relations between the two countries, which seek to achieve mutual interests.
The project will improve the social life of citizens and support the diversification of the national economy of both countries.
The project also seeks to create new prospects in the infrastructure, transport, and logistics industry by connecting the two countries via rail.
The idea of developing the Oman-UAE rail network reflects the strong ties between the two countries in various fields.
The partnership comes as a result of the strong relations between Etihad Rail, the developer and operator of the UAE national Rail Network, and Oman Rail, the developer of the Oman national railway network.
The partnership aligns with the UAE and Oman’s objectives of connecting population and industrial areas using a joint railway network, which contributes to enhancing economic development in both countries and forming a main link in the global supply chain.
The railway track will extend for 303 km from Sohar to the Emirate of Abu Dhabi. It will be connected to the UAE National Rail Network and its stations across the country.
Passenger trains will reach 200 km/h, running between Sohar and Abu Dhabi in 100 minutes, and between Sohar and Al Ain in 47 minutes. Freight trains, which run up to 120 km/h.
The joint railway network will provide freight and passenger transport services.
Etihad Rail and Oman Rail are currently working to set the expected time for operating the project. This will be announced later once approved.