Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, signed a cooperation agreement with Mubadala Investment Company, a sovereign investor in Abu Dhabi, to support the development of the 303km railway network, which connects Oman and the UAE, with an overall investment value of USD 3 billion.
The partnership comes in line with the two parties’ efforts to explore investment opportunities in the railway sector and strengthen cooperation to support the Oman and Etihad Rail Company in accelerating the planning and execution process of the UAE-Oman Rail Network.
The cooperation agreement includes formation of working groups and joint committees to benefit from the shared expertise and knowledge, joint efforts in developing economic and financial feasibility studies, in addition to joint investments in the development of the UAE-Oman railway network and cooperation to enhance the project’s added value.
The signing ceremony was attended by His Excellency Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, Chairman of Oman and Etihad Rail Company,, has witnessed the signing ceremony, along with members of the Board of Directors of Oman and Etihad Rail.
The agreement was signed by Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company, and Dr. Bakheet Saeed Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala’s UAE Investments platform.
New prospects
The signing of the agreement follows the establishment of the Oman and Etihad Rail Company, a joint venture established by Oman Rail, the Sultanate’s national developer and operator of railway networks, and Etihad Rail, the developer and operator of the UAE’s National Rail Network, under the agreement signed last September between the two companies on the sidelines of the visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan to Oman.
Economic Benefits and Business Opportunities
The UAE-Oman Rail Network will increase market competitiveness and reduce the overall cost of supply chains, due to its increased efficiency compared to other modes of transport. The Network will also 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, statement mentioned.
