UAE and Oman have plenty in the pipeline: Emirati and Omani companies inked agreements valued at a collective AED 129 bn (USD 35 bn) to jointly implement projects across sectors including energy and transportation, according to a statement. The investments were announced following Oman’s Sultan Haitham bin Tariq’s two-day visit which saw the two countries agree to allocate AED 11 bn to contracts for the UAE-Oman railway network, the ministry said.

The two countries are set to break ground on the railway: The railway developer has awarded the tenders for the construction of the railway and construction is slated to commence, with the project anticipated to be completed in “record time,” the UAE’s Energy and Infrastructure Minister Suhail Mohamed Al Mazrouei told Wam on the sidelines of the UAE-Oman Business Forum held yesterday. It remains unclear whether the AED 11 bn agreement is for a different set of tenders and contracts for the railway.

The forum also saw the signing of an agreement to set up a Omani-Emirati consortium, led by Alpha Dhabi’s subsidiary Trojan Construction Group and Emirati construction firm Galfar, to award contracts to developers for the railway, Oman Observer reports. Additionally, another agreement was signed between Siemens and Egyptian contractor Hassan Allam Construction to oversee the tender awarding for the railway’s technology.

Background: Etihad Rail had inked an agreement in 2022 with Oman Rail, the Omani national railway developer, to set up the Oman-Etihad Rail Company, a USD 3 bn (c. AED 11 bn) 50-50 JV, for the design, development, and operation of railways linking Oman’s Sohar Port with the UAE’s national railway network. The transport link between the UAE and Oman, first announced in September, is aimed at bolstering trade between the two countries and the region. The rail line will serve both passenger and freight trains.

A New entity for UAE-Oman railway developer: Etihad Rail, Mubadala, and Oman’s integrated logistics provider Asyad Group launched a new brand for the joint railway network, dubbed Hafeet Rail, Asyad said on X. The partnership agreement between the three companies has an estimated AED 3 bn ticket, the ministry said.

Not just a brand: The partnership agreement between Etihad Rail, Mubadala and Asyad will involve the three firms forming working groups and a joint committee to exchange expertise and conduct economic and financial feasibility studies for the railway, according to Oman Observer.

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