Hafeet Rail has successfully secured bank financing for the Hafeet Rail network project connecting the Port of Sohar with the UAE, with a total project finance debt of OMR577 million. The joint project, valued at OMR961 million, is being implemented and operated by Hafeet Rail and demonstrates confidence from local, regional, and international lenders, highlighting the project’s strategic importance.
The Omani Emirati railway network project is the first link in a unified transport and logistics chain that will deliver socioeconomic and competitive advantages to both nations. The joint venture between Etihad Rail, Oman Rail, and Mubadala showcases the power of partnership in creating a connected and prosperous future for the region. This collaboration aims to enhance the competitiveness of the countries and establish them as vital commercial and investment hubs.
The strong interest shown by leading banks in financing the project reflects confidence in this strategic investment and its potential to boost the transport and logistics sector, stimulate economic growth, and enhance commercial activity between the UAE and Oman. The joint Emirati-Omani rail network project will strengthen trade ties, boost tourism, and enhance connectivity between the two countries and the wider region.
The 238km long railway network, which includes bridges towering up to 34 meters in height and tunnels stretching 2.5 km in length, will link five major ports and various industrial and free zones across the UAE and Oman. Once operational, the railway will cut travel time between Abu Dhabi and Sohar to just 100 minutes, with freight trains reaching speeds of 120km/hour and passenger trains accommodating up to 400 travelers at a speed of 200km/hour.
The Hafeet Rail project aligns with the UAE’s Centennial Plan 2071 and Oman Vision 2040, fostering economic growth, social cohesion, and sustainable development in both nations. The project pays homage to Jebel Hafeet, holding historical importance and strategic significance to both countries and aims to strengthen trade ties, boost tourism, and enhance connectivity between the two nations and the wider region.
Hafeet Rail has successfully reduced the required bank financing for the Emirati-Omani rail network from the initially announced $3 billion to $2.5 billion, showcasing the company’s dedication to optimizing resources while advancing the development of this critical project. The project remains committed to delivering exceptional quality and efficiency, adhering to the highest global standards to benefit various sectors and enhance connectivity in the region.
