Hafeet Rail, previously known as Oman and Etihad Rail Company, has successfully secured a $1.5 billion loan from a consortium of regional and international banks to finance a 238-kilometer railway network. This project, which totals $2.5 billion, marks the first step in creating a unified transport and logistics chain between the UAE and Oman.
The funding will be allocated in both conventional and Islamic financing options, denominated in UAE dirhams and Omani rials. The consortium includes prominent banks from both nations, such as Abu Dhabi Commercial Bank and Bank Muscat, as well as international institutions like Jordan’s Arab Bank and the UK’s Standard Chartered Bank.
Hafeet Rail is a joint venture involving the UAE’s Etihad Rail, Mubadala Investment Company, and Oman’s Asyad Group. The project’s overall cost has been reduced from $3 billion to $2.5 billion, reflecting efficient project management.
In May, a tender for civil works and construction was awarded to an Omani-Emirati alliance led by Trojan Construction Group and Galfar Engineering and Contracting. The railway will feature 60 bridges, some reaching heights of 34 meters, and tunnels extending 2.5 kilometers.
Once operational, the rail network is expected to revolutionize cargo transport, allowing a single freight train to carry over 15,000 tonnes of cargo or 270 standard containers. Key sectors set to benefit include mining, agriculture, retail, and petrochemicals. The railway will reduce travel time between Abu Dhabi and Sohar to just 100 minutes, with freight trains operating at speeds of 120 km/h and passenger trains accommodating up to 400 travelers at speeds of 200 km/h.
