Oman and Etihad Rail Company, Mubadala partner to develop 303km rail network

Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, and Mubadala have inked a cooperation agreement to develop the 303km railway network, which will connect Oman and the UAE, at an overall investment value of 3bn.

The partnership aims to support the Oman and Etihad Rail Company in accelerating the planning and execution process of the railway network.

The signing of the agreement follows the establishment of the company, a joint venture established by Oman Rail, the country’s national developer and operator of railway networks, and Etihad Rail, the developer and operator of the UAE’s National Rail Network, under a deal signed last September between the two companies.

Read: UAE and Oman to build $3bn railway line

The cooperation agreement with Mubadala includes:

• The formation of working groups and joint committees to benefit from the shared expertise and knowledge
• Joint efforts in developing economic and financial feasibility studies
•  Joint investments in the development of the UAE-Oman railway network
• Cooperation to enhance the project’s added value

Oman and Etihad Rail Company to bolster relations

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.”

We are proud to sign a new landmark agreement to support the UAE-Oman Rail Network, marking a new era of connectivity and cooperation in the Gulf. The 303km railway connecting Sohar, Oman, and Abu Dhabi will drive trade and investment,

(1/2) pic.twitter.com/sigkgAMX3y

— Mubadala (@Mubadala) February 22, 2023

“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,” added Al Mazrouei.

Dr Bakheet Al Katheeri, executive director of the UAE Industries Unit at Mubadala’s UAE Investments platform, commented: “”The MoU signed between Mubadala, and Oman-Etihad Rail Company 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 amongst both countries as well as create value for all stakeholders.”

Ahmed Al Musawa Al Hashemi, CEO of Oman and Etihad Rail Company said: “The rail network between Oman and UAE is of strategic importance as it is a valuable addition to the logistics service sector in both countries, and contribute to increasing their competitiveness in the market by reducing the total cost of the supply chain. This is in line with both countries’ goals of achieving sustainable development by improving the transport and infrastructure sectors. The agreement with Mubadala reaffirms the strategic position of the joint rail network project to achieve its objectives and ambitions.”

Benefits of the UAE-Oman Rail Network

• The railway network will reduce the overall cost of supply chains, due to its increased efficiency compared to other modes of transport.
• It will 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.
• The network will employ the highest international security, safety, and environmental standards to provide safe and fast passenger and freight services.
• Passenger trains will run up to 200 km per hour, reducing the time of the journey between Sohar and Abu Dhabi to 100 minutes.