Abu Dhabi: Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, signed a cooperation agreement with Mubadala Investment Company to support the development of the 303km railway network with an overall investment value of $3 billion.
The 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.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, said: “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 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 cooperation agreement between Oman and Etihad Rail company and Mubadala reflects the commitment of both parties to building strategic partnerships and strengthening cooperation with leading entities to promote investment, economic growth, and comprehensive development in both countries. 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.”
The UAE-Oman Rail Network will increase market competitiveness and reduce the overall cost of supply chains. It will also provide trade and investment opportunities for the private sector, providing 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.
Passenger trains on the network will run at speeds of up to 200km 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 120km per hour.
Oman and Etihad Rail Company was established in September 2022, as a joint venture, equally owned by Etihad Rail, the developer and operator of the UAE National Railway Network, and Oman Rail, the Sultanate’s national developer and operator of railway network, with a total project investment of $3 billion.