Khaleej Times, Wednesday, Feb 22, 2023 | Sha'ban 02, 1444
UAE-Oman railway: New agreement signed to develop 303km network
Emirates, Oman:
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 $3
billion.
Passenger trains will run up to 200 km per hour, this will slash travel time
from Sohar to Abu Dhabi to one hour and 40 minutes, and from Sohar to Al Ain to
47 minutes. Meanwhile, freight trains will run up to 120kph.
The partnership with Mubadala 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 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.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and
Infrastructure and Chairman of Oman and Etihad Rail Company, said: “The
establishment of Oman-Etihad Rail network, is an extension of the strategic
relations and strong historical ties between the UAE and the Sultanate of Oman,
and the foundation of the strong partnership between Etihad Rail and Oman Rail.
The joint venture will transform the infrastructure, transport, and logistics
sectors, and enhance commercial movement and social cohesion, by linking
economic, industrial, commercial, and residential centers through the railway
network.”
“The signing of the cooperation agreement between Oman and Etihad Rail company
and Mubadala reflects the commitment of both parties to building strategic
partnerships and strengthening cooperation with leading entities to promote
investment, economic growth, and comprehensive development in both countries.
The agreement will contribute to enhancing and developing the national economy
in the UAE and the Sultanate by improving supply chain efficiency, opening new
cross-border trade opportunities, and providing safe and sustainable means of
transportation via rail for passengers and goods,” His Excellency added.
Dr Bakheet Al Katheeri, Executive Director of the UAE Industries Unit at
Mubadala’s UAE Investments platform, commented: “"The MOU signed between
Mubadala, and Oman and Etihad Rail Company is designed to explore and unlock new
opportunities in the infrastructure, transport, and logistics industries. The
strategic partnership with Oman and Etihad Rail Company is aimed at driving
economic development and collaboration amongst both countries as well as create
value for all stakeholders."
Ahmed Al Musawa Al Hashemi, CEO of Oman and Etihad Rail Company said: “The rail
network between Oman and UAE is of strategic importance as it is a valuable
addition to the logistics service sector in both countries, and contribute to
increasing their competitiveness in the market by reducing the total cost of the
supply chain. This is in line with both countries’ goals of achieving
sustainable development by improving the transport and infrastructure sectors.
The agreement with Mubadala reaffirms the strategic position of the joint rail
network project to achieve its objectives and ambitions.”
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 the UAE
President, 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.