The Announcement

In September 2022, Etihad Rail and Oman Rail officially agreed to make a $3 billion venture to control a railway line connecting Sahar Port to the UAE rail network. The train will transport passengers and cargo between the UAE and Oman.

High-speed rail will convey both freight and passengers between the UAE and Sultanate. The passenger railway will connect Sohar and the national capital and features a top speed of 200 kph.

The agreement was signed by Abdulrahman Salim Al Hatmi, Group CEO of ASYAD, and Shadi Malak, CEO of Etihad Rail.

Benefits of the new Rail Track

The united network promotes the expansion of several commercial and industrial sectors while solidifying the long-standing and strategic links between Oman and, therefore, the UAE.

Better social ties, trade, and investment opportunities will result from the faster, cheaper, and more efficient transportation and logistics solutions that rail transportation will deliver.

The highly anticipated 303-km railway will connect Sohar to UAE’s capital and provide faster and safer passenger and freight services. The passenger trains are designed to cut back the travel times from Sohar to United Arab Emirates’s capital and Al Ain to 1 hour, 40 minutes, and 47 minutes, respectively, with a top speed of 200 km/h. within the interim, the freight trains will run up to 120 km/h.

The railway network between the Sultanate of Oman and, therefore, the United Arab Emirates, which uses cutting-edge rail and transportation technologies, will contribute to the economic process of both countries. Additionally, linking commercial ports to the railway network will facilitate cross-border trade, boost supply chain efficiency, and cut costs.

The railroad will offer assistance contracts and investment opportunities to the private sector. The new installation will strengthen both countries’ national talent capital, start a replacement era of innovation, and open up new employment opportunities across industries.

The project will encourage travel between Oman and the UAE, strengthen their roles as regional logistical hubs, and boost their international competitiveness.

Scope of Agreement

Malak says this agreement sets up a strategic plan for a long-term project connecting the UAE National Rail Network to Sohar Port. This project could improve relations between the UAE and Oman and make trade between regions easier.

Al Hatmi replied, “A new railway capability would help our logistics sector because it would make it easier for manufacturing and industrial operations to proliferate across borders.” It would also give trade and logistics businesses great investment opportunities.” The proposed network would improve our vast network of ports and logistical resources, increasing our competitiveness and granting us quicker access to foreign markets.”

According to him, the railway also holds out the promise of significant strategic economic and social gains by promoting a more robust and diverse financial system, enhancing logistical services and infrastructure, promoting travel and tourism, and ultimately raising living standards for communities on each side of the border by supporting a variety of important strategic initiatives of the governments of Oman and also the UAE.