Oman rail, the sultanates national developer of railways and Etihad rail, the operator and developer of the UAE’s rail system have tied together to create and launch a separate company with equal stakes in it, calling it Oman-Etihad Rail Company.
The new business, Oman-Etihad Rail, will lay the groundwork and work plan for the project, including its financial framework and timeline, by this agreement. Per the norms of the two nations, the business will also manage the design, development, and management of the rail network between Sohar and Abu Dhabi. The new rail company will have a total capital power of $3 billion to begin its work connecting Sohar Port to the UAE National Rail Network.
Oman Rail, a division of Asyad Group, was represented by Abdulrahman Salim Al Hatmi, Group CEO of Asyad at the signing event along with Shadi Malak, CEO of Etihad Rail. By connecting the two nations via rail, Oman Rail and Etihad Rail hope to expand their long-standing partnership and open up new opportunities in the infrastructure, transportation, and logistics sectors.
The much-anticipated 303-km railway will primarily link Sohar to Abu Dhabi and will feature the best international safety, security, and environmental standards, to provide faster and safer passenger and freight services. The passenger trains are designed to reduce travel time from Sohar to Abu Dhabi to 1 hour 40 minutes, and from Sohar to Al Ain to 47 minutes, travelling at a maximum speed of 200 km/h. Meanwhile, the freight trains will run up to 120 km/h.
This massive project will benefit many parties, and the railway will provide the private sector with a variety of investment options and support contracts. The new transportation system will usher in a new era of innovation, open up new job opportunities across industries, and strengthen both nations’ national talent capital.
The railway project will also help to boost tourism between Oman and UAE, bolden competitiveness between the two nations in terms of trade and strengthen their position as a logistics hub.
Shadi Malak, CEO of Etihad Rail, said “In line with the vision and directives of our wise leadership, we are delighted to start this partnership with Oman Rail, which heralds a new chapter of collaboration and prosperity between both countries. The agreement outlines a strategic roadmap for a sustainable project which will contribute to bolstering the solid relations between the UAE and Oman, and will play an instrumental role in facilitating national and regional trade by connecting the UAE National Rail Network with Sohar Port.”
Abdulrahman Salim Al Hatmi, Group CEO of Asyad said “Adding a new railway capability to our logistics sector will offer trade and logistics companies outstanding investment opportunities and empower manufacturing and industrial activities to quickly expand beyond borders. The envisioned network will complement our comprehensive set of ports and logistics assets, augment our competitiveness and open faster access to global markets.”
