UAE signs USD 35 bn partnerships with Oman

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 an Investment Ministry {statement}. The investments were announced following Oman’s Sultan Haitham bin Tariq’s two-day visit, during which he met with President Sheikh Mohamed bin Zayed Al Nahyan at Qasr Al Watan in Abu Dhabi to discuss strengthening bilateral relations and recent regional developments. The breakdown of the agreements:

A NEW TECH FUND-

#1- ADQ + OIA unveil USD 180 mn tech fund: Abu Dhabi sovereign wealth fund ADQ and Oman Investment Authority (OIA) will launch a USD 180 mn (AED 660 mn) fund, named Josoor fund, aimed at advancing Oman’s digital economy, ADQ said in a statement.

About the fund: Josoor will primarily target investments in tech companies and startups in Oman, but will also focus on funding tech firms across the region. The fund’s investments will be geared towards high-growth tech companies in fintech, edtech, healthtech, cleantech, food and agriculture, and logistics.

Background: During President Al Nahyan’s visit to Oman in 2022, the two players identified potential joint investments worth AED 30 bn across hydrogen, solar and wind, green aluminum, steel, and water and electricity sectors. ADQ and OIA had signed an MoU to set up a AED 592 mn venture capital fund that targets high-growth Omani startups.

ENERGY-

#2- AED 117 bn energy megaproject: The visit saw a number of manufacturers and utility and energy firms, including Taqa, Masdar, Emirates Global Aluminium (EGA), Emirates Steel Arkan (ESA), OQ Alternative Energy and Oman Electrical Transmission Co, earmark AED 117 bn for an “industrial and energy megaproject,” according to the ministry’s statement. The megaproject will include developments in the sectors of renewables and green metals production. None of the companies involved disclosed further details.

TRANSPORT-

#3-The two countries agreed 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.

#4- 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.

BILATERAL COOPERATION-

#5- The two countries also agreed to form a bilateral alliance aimed at boosting economic and trade ties, the ministry said, without providing further details. Dubai Ruler and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum also met with Sultan of Oman, Haitham bin Tariq, yesterday to discuss boosting relations, especially in trade and investment, as well as new potential avenues for cooperation, Wam reported.

#6- More cooperation ahead: The Investment Ministry signed a cooperation agreement with Oman’s trade and investment promotion ministry to collaborate on projects spanning digital infrastructure, food security, energy and transportation.