In a groundbreaking move set to redefine regional connectivity and bolster economic ties, Oman Rail and Etihad Rail have joined forces under the banner of “Hafeet Rail” to create a transformative railway network linking the Sultanate of Oman and the United Arab Emirates (UAE).
This historic collaboration, encapsulated in the formation of the Oman-Etihad Rail joint venture, marks a pivotal moment in the strategic relationship between these two nations, heralding a new chapter of growth and innovation in the infrastructure, transport, and logistics sectors.
Named after Jebel Hafeet, a natural landmark bridging Oman and the UAE, this venture embodies resilience, progress, and unity.
Under this agreement, the new company will lay the groundwork and work plan 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 standards of the two countries.
The genesis of this ambitious endeavour lies in the shared vision of Oman Rail, a key entity within the Asyad Group, and Etihad Rail, a prominent player in the UAE’s transportation landscape. By synergising their expertise and resources, both parties aim to unlock a myriad of opportunities, ranging from enhancing commercial exchange to fostering social cohesion through seamless connectivity between urban centres and industrial zones across Oman and the UAE.
From an economic perspective, the joint network, which boasts a total investment value of $3 billion, will solidify the UAE and Oman’s positions as regional logistics hubs and amplify their roles as gateways to regional markets.
Key joint venture highlights
Historic collaboration: Built on a foundation of strategic and historical ties, the Oman-UAE railway project is a testament to the enduring relationship between the two nations.
Infrastructure and connectivity: The 303km railway will link Sohar to Abu Dhabi, traversing breathtaking landscapes and featuring world-class safety and environmental standards. The railway line will include two 2.5km-long tunnels and 36 bridges, some towering at 34 metres. Passenger trains are set to reduce travel times, enhancing mobility and connectivity drastically.
Passenger trains, operating at speeds of up to 200km/h, promise swift and comfortable travel experiences, significantly reducing journey times. For instance, the route from Sohar to Abu Dhabi will be streamlined to a mere 1 hour and 40 minutes and from Sohar to Al Ain to 47 minutes, underscoring the efficiency and convenience offered by the rail network. Moreover, freight services, running at 120km/h, are poised to revolutionise logistics and supply chain dynamics, catalysing economic efficiencies and cost savings for businesses operating in the region. Freight trains will transport more than 25,000 tonnes of general cargo in one trip, reducing carbon emissions by 10 times compared to other transport means.
Hafeet Rail will have passenger and freight stations in Sohar and Al Ain, as well as another freight station in Buraimi.
Economic stimulus: Railways offer a sustainable and efficient mode of transportation, aligning with global efforts towards environmental stewardship. Compared to other modes of transport, rail is 30% less expensive, emits 80% less carbon dioxide, and uses 60-80% less energy. The project’s economic impact is profound, promising enhanced supply chain efficiency, increased market competitiveness, and reduced supply chain costs. It opens doors to many investment opportunities and job creation across sectors, driving economic growth and innovation. Furthermore, the railway’s strategic alignment with key commercial ports is poised to amplify cross-border trade flows, bolstering the region’s status as a logistics hub and enhancing global connectivity. Moreover, the completion of the railway is essential for reducing reliance on private automobiles and promoting sustainable transportation solutions.
Tourism and trade: Beyond its economic benefits, the railway network is poised to stimulate tourism activities, strengthen global trade competitiveness, and position both countries as logistics hubs for regional markets.
Milestone achievements and future prospects
The recent signing of partnership agreements and the commencement of construction works mark significant milestones in this transformative endeavour.
The involvement of key stakeholders, such as Mubadala Investment Company, and awarding contracts to a blend of Omani and Emirati companies reflects a commitment to building national capabilities and fostering in-country value, reflecting the collaborative ethos driving this transformative initiative, characterised by a shared commitment to excellence and sustainability.
In addition, another tender for the systems and integration of the railway network was awarded to a joint venture between Siemens and HAC, ensuring Hafeet Rail’s fleet is equipped with the latest rail technologies and advancements. The trains will be equipped with the European Train Control System (ETCS) Level 2, the most advanced such system in the world, to ensure the highest levels of efficiency and safety by international standards and best practices. As a result, the network’s advanced infrastructure will include complete digital train control and tracking through GPS technology, enhancing the network’s reliability.
Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, emphasises the project’s potential to catalyse economic cooperation, drive tourism, and strengthen people-to-people ties. His optimism reflects a shared vision of prosperity and sustainable development.
Coinciding with the recent state visit of His Majesty Sultan Haitham bin Tarik to the United Arab Emirates, Etihad Rail, Oman Rail, and Mubadala Investment Company signed a partnership agreement as shareholders, marking the commencement of construction works of the joint railway project with immediate effect.
As the Oman-UAE railway project enters the implementation phase, stakeholders are optimistic about its transformative impact on economic cooperation, industrial sectors, and regional connectivity. The railway’s diverse geographical route underscores its significance in bridging landscapes and fostering closer ties between nations.
The Oman-UAE railway project represents a groundbreaking initiative that underscores the power of collaboration, innovation, and strategic vision in driving economic growth and fostering regional integration.
