Oman Rail, Etihad Rail to build $3 bn rail network

Oman Rail, the national developer and operator of railway networks in the Sultanate of Oman, signed an agreement with Etihad Rail, the developer and operator of the UAE National Rail Network, to jointly establish an equally-owned company, Oman-Etihad Rail Company. The newly created entity will hold an overall investment power of $3 billion to design, develop and operate a railway network connecting Sohar Port to the UAE National Rail Network.

Oman Rail, part of Asyad Group, was represented in the signing ceremony by Eng Abdulrahman Salim al Hatmi, Group CEO of Asyad, and his counterpart Eng Shadi Malak, CEO of Etihad Rail.

Under this agreement, the new company — Oman-Etihad Rail — 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 Suhar and Abu Dhabi, in line with the standards of the two countries.

Built on the historic and strategic relations between the two countries, this major joint venture is an extension of the longstanding collaboration of Oman Rail and Etihad Rail, who both seek to create new prospects in the infrastructure, transport, and logistics industries by connecting the two countries via rail. The two parties aim to unlock new opportunities by strengthening commercial exchange and social cohesion, connecting key urban centers, facilitating travel between communities and providing seamless transport solutions between economic and industrial zones in Oman and the UAE.

The much-anticipated 303-km railway will primarily link Suhar to Abu Dhabi and will feature the best international safety, security, and environmental standards, to provide faster and safer passenger and freight services. The passenger trains are designed to reduce travel time from Suhar to Abu Dhabi to 1 hour 40 minutes, and from Suhar to Al Ain to 47 minutes, travelling at a maximum speed of 200 km/h. Meanwhile, the freight trains will run up to 120 km/h.

Employing cutting-edge transport and rail technology, the railway network between the Sultanate of Oman and the United Arab Emirates will boost the growth of the national economy in both countries. It will also improve the efficiency of supply chain, facilitate cross-border trade by linking commercial ports to the railway network, boost market competitiveness and reduce the total cost of supply chains.

With multiple stakeholders set to reap the benefits of this mega project, the railway will provide a host of investment opportunities and support contracts to the private sector. The new transport system will create job opportunities across sectors, develop the national human capital of both countries and kick off a new age of innovation.

On a wider scope, the project will stimulate tourism activities between Oman and the UAE, strengthen the competitiveness of the two countries in global trade and solidify their positions as logistics hubs for import and export to regional markets.

Underlining the impact of this landmark agreement, Eng Abdulrahman Salim al Hatmi, Group CEO of Asyad, explained: “adding a new railway capability to our logistics sector will offer trade and logistics companies outstanding investment opportunities and empower manufacturing and industrial activities to quickly expand beyond borders. The envisioned network will complement our comprehensive set of ports and logistics assets, augment our competitiveness and open faster access to global markets.”

“The railway also promises huge strategic economic and social gains as it promotes a more diverse robust national economy, upgrades infrastructure and logistic services, drives forward travel and tourism, and ultimately improves the quality of life for communities on both sides of the borders by supporting the various strategic initiatives of the governments of Oman and the UAE,” Al Hatmi added.

Eng Shadi Malak, CEO of Etihad Rail, said: “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.”