Oman, UAE ink $3 billion deal to link countries with railway

Oman and the UAE have inked a deal worth $3 billion to link Oman's Sohar port with UAE capital Abu Dhabi by a passenger train, Emirati news agency WAM revealed on Wednesday.

The 303-kilometre (188 miles) railway, with passenger trains travelling up to 200 kilometres per hour, is set to connect Oman with the UAE's national rail network, which is now under construction, according to AFP.

Etihad Rail, Oman Rail to build US$3 billion Oman-Etihad Rail Company#WamNews https://t.co/Rh7hXB0v6x pic.twitter.com/VAXzmErA2e

— WAM English (@WAMNEWS_ENG) September 28, 2022

Omani and Emirati rail network developers and operators Oman Rail and Etihad Rail signed an agreement to establish an equally owned company, Oman-Etihad Rail Company, to design, develop and operate the railway network.

The deal was agreed on the sidelines of UAE President Mohamed bin Zayed al-Nahyan’s visit to the Omani capital Muscat.

"The railway... promises huge strategic economic and social gains," Abdulrahman Salim Al Hatmi, Group CEO of Oman Rail's parent company Asyad, was quoted by WAM as saying.

"It promotes a more diverse robust national economy, upgrades infrastructure and logistic services, drives forward travel and tourism, and ultimately improves the quality of life for communities on both sides of the borders," al-Hatmi added.

No finish date was given for the project, but when complete, Etihad Rail will operate 1,200 kilometres of track connecting all seven emirates and the border of neighbouring Saudi Arabia, as well as Oman, according to AFP.

There have been previous plans to link the two countries by train, via a pan-Gulf rail system.