Gulf railway

Oman – UAE Hafeet Rail secures 1,5 billion dollars in funding

Image: © Etihad Rail & Oman Rail Joint Venture

The planned railway between Oman and the United Arab Emirates, Hafeet Rail, can count on 1,5 billion US dollars out of the 2,5 billion in required funding. The project is supposed to connect the port of Sohar in northern Oman with Abu Dhabi and facilitate both freight and passenger traffic as “the region’s first cross-border rail network”.

Hafeet Rail, a joint venture between Etihad Rail, Mubadala, and Asyad Group, will be 238 kilometres long and is supposed to connect five major ports and industrial zones across the UAE and Oman. In the future, an extended connection to Oman’s capital city Muscat is planned as well. The 1,5 billion dollar funding for the project reportedly comes from Emirati, Omani and regional banks, as well as banks from the wider world, including Jordan, Kuwait and the UK.

The rail project, which was previously named Omani & Etihad Rail Company but changed its name in the spring of 2024, is part of a wider effort to develop rail infrastructure in the Gulf region and to connect all six Gulf Cooperation Council member states.

A map of the planned Hafeet railway and the newly built UAE national rail network. Image: © Hafeet Rail

The beginnings of Gulf rail infrastructure

In both the UAE and Oman, the development of rail infrastructure is a recent phenomenon, but it seems that there is ample demand for rail freight transportation. Preparatory works for Hafeet Rail started only in May this year, but as early as August 2023 a steel company signed up as a customer.

While Oman is still working on its rail network, the UAE managed to connect all seven emirates via rail in February of 2023. Mining company Stevin Rock and chemical manufacturer Borogue were among the first UAE companies to sign contracts to use the brand-new network.

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Author: Dennis van der Laan

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