Hafeet Rail has announced the securing of $1.5 billion in financing for the Oman-UAE railway connection project. The financing was provided by Emirati and Omani banks, alongside several regional and international financial institutions, including both conventional and Islamic banks. The railway network is part of a $2.5 billion joint project aimed at enhancing transport and logistics between the two countries.
At the financing announcement ceremony, Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail and Deputy Chairman of the UAE’s Presidential Court, highlighted the strategic importance of the project in strengthening trade links and positioning the region as a global logistics hub.
The railway network, spanning 238 kilometers, will include 60 bridges and 2.5 kilometers of tunnels, directly connecting Abu Dhabi to Sohar Port in Oman. Freight trains on this route will be able to carry more than 15,000 tons of cargo, with passenger travel times between Abu Dhabi and Sohar reduced to 100 minutes.
Economic and Strategic Significance
Abdulrahman Al Hatmi, CEO of Asyad Group, described the project as a strategic investment with broad economic and social impacts for the region. He emphasized that the railway will boost economic growth, enhance competitiveness, and facilitate trade between the two nations.
Bank Participation
The banks involved in this financing include prominent institutions from the UAE and Oman, such as First Abu Dhabi Bank, National Bank of Oman, Abu Dhabi Islamic Bank, and Bank Muscat. The financing is structured into both conventional and Islamic tranches, with Standard Chartered Bank acting as the project’s financial advisor.
This project aligns with the shared development goals of the UAE and Oman under UAE Centennial 2071 and Oman Vision 2040, aiming to strengthen transport infrastructure and foster economic and trade cooperation between the two countries.
Source: $1.5 Billion Financing Secured for Oman-UAE Railway Project (msn.com)
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