Hafeet Rail has secured a $1.5 billion funding package from a mix of regional and global banks to develop a 238-kilometre (km) railway network connecting the UAE National Railway Network with Oman’s Sohar Port.
This network is a crucial part of a $2.5 billion Omani-Emirati railway project, aiming to connect major ports and economic zones across the UAE and Oman, as per UAE’s state-run Wam news agency.
The railway aims to transport over 15,000 tonnes of freight or 270 containers per trip, boosting sectors like mining, agriculture and e-commerce. It will feature 60 bridges, some rising up to 34 metres, and tunnels spanning 2.5km.
Once operational, it will reduce travel time between Abu Dhabi and Sohar to 100 minutes, with freight trains running at 120 km/h and passenger trains accommodating 400 people at speeds up to 200 km/h.
The funding includes both conventional and Islamic financing in UAE dirhams and Omani rials, although specific breakdowns were not disclosed.
The UAE’s banking sector contributors include Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, and Ajman Bank. Oman’s banks include Ahli Bank, Bank Dhofar, Bank Muscat, National Bank of Oman, among others.
Additionally, banks like Jordan’s Arab Bank, National Bank of Kuwait, and the UK’s Standard Chartered Bank are part of the international consortium.
This venture, a collaboration between UAE’s Etihad Rail, Mubadala Investment Company, and Oman’s Asyad Group, has successfully lowered the project’s cost from $3 billion to $2.5 billion. In May, the construction contract was awarded to an Omani-Emirati partnership led by Trojan Construction Group and Galfar Engineering and Contracting.
