Emirates-Oman rail network receives $3 billion investment
The United Arab Emirates and the Sultanate of Oman will invest $3 billion to build a railway line connecting the two Gulf countries.
Currently, it takes just 3.5 hours to travel the 290 kilometres between Abu Dhabi and Sohar, one of the main enclaves in northern Oman. But that should change in the next decade. In fact, Oman will be equipped with an upgraded rail network.
The project is overseen by Oman and Etihad Rail, through a joint venture between the two companies. They signed an agreement with Abu Dhabi's Mubadala Investments Company to develop the protocol for the 303-kilometre route, which was sealed during Emirati President Mohamed bin Zayed's visit to the Omani capital, Muscat.
The economic and social benefits of the new rail project promise to be "enormous", Abdulrahman Salim al-Hatmi, CEO of Oman Rail's parent company Asyad, said in a press release. The aim is to connect the Sultan's three ports with the country's industrial, commercial and residential areas.
The main objective is to boost trade and tourism opportunities between the two Gulf neighbours and with the rest of the region.
Suhail al-Mazrouei, UAE Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, said: "The establishment of the Oman-Etihad Rail network is an extension of the strategic relations and strong historical ties between the two countries, and the foundation of the strong partnership between Etihad Rail and Oman Rail," implying that it would bring the nations together in various sectors.
Etihad Rail will develop the line, which is just over 300 kilometres long. It will allow passenger trains to run at a speed of 200km/h; while goods trains will run at a speed of 120km/h. This connection will start from Sohar, the northern port, and will reduce travel time between Abu Dhabi and Sohar, north of Muscat to 100 minutes, and travel time between Sohar and Al Ain to 47 minutes. Meanwhile, passengers from Abu Dhabi will be able to connect to Etihad's rail network to Dubai.
Furthermore, the minister added that "the signing of the cooperation agreement between Oman and Etihad Rail Company and Mubadala shows the commitment of both parties to build strategic partnerships to promote investment, economic growth and comprehensive development in both countries." The joint venture will transform infrastructure, transport and logistics, thereby enhancing trade and social cohesion by connecting economic, industrial and commercial centres through the rail network.
As reported by Times of Oman, the partnership was signed by Ahmed al-Hashemi, CEO of Oman and Etihad Rail Company, and Bakheet al-Katheeri, CEO of the UAE Industries Unit at Mubadala Investment Platform.
The agreement will help enhance and develop the UAE's national economy, thereby opening up new cross-border trade opportunities and ensuring safe and sustainable transport for passengers and goods.
Etihad Rail, on the other hand, is responsible for building a 1,200-kilometre passenger and freight rail network in the UAE. The project aims to eventually become part of a larger rail network connecting six Gulf countries: Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman. However, the railway currently operates only in the Emirate of Abu Dhabi and only carries goods trains.