The cooperation between Oman and the UAE in building a rail system that connects the two nations. The expansion of this railway network would not only boost transportation but also aid in strengthening bilateral trade and economic ties.
The huge amount of $3 billion (Dhs11 billion) invested in this project shows both countries’ dedication to its successful completion.
Mubadala signs $3 billion deal to support
The railway network, which extends over a distance of 303 km, will provide an efficient and cost-effective means of transportation for both people and goods, reducing travel time and transportation costs.
The well-known UAE investment company Mubadala Investment Company is a stakeholder in the partnership agreement. This partnership will bring in expertise and resources that could help ensure the successful implementation of the project.
Moreover, by cooperating to enhance the project’s added value, the two parties can identify new opportunities and strategies for maximizing the benefits of the railway network for both countries.
By pooling their expertise and resources, they will be able to accelerate the planning and execution process and develop economic and financial feasibility studies more efficiently.
What will be the benefits of the UAE-Oman rail network project?
The advantages of the UAE-Oman Rail Network are undoubtedly remarkable, and it is obvious that this project has the potential to have a significantly beneficial impact on both nations. The network will aid in boosting economic growth and trade connections between Oman and the UAE by enhancing market competitiveness and decreasing the overall cost of supply chains.
Another significant advantage of the network is its capacity to open up trade and investment opportunities for the private sector, which will support the growth of new employment opportunities and the economies of both nations. The training of national human resources and enrichment of tourism activities will contribute to the development of sustainable and diversified economies in Oman and the UAE.
Trains carrying passengers on the UAE-Oman rail network will be able to travel at speeds of 200 km/h, cutting the distance between Sohar and Abu Dhabi in half.
The UAE-Oman Rail Network has amazing train speeds for both passenger and freight trains, which will speed up and improve transportation. With passenger trains moving at speeds of up to 200 km/h, it will take just 100 minutes to get from Sohar to Abu Dhabi and only 47 minutes to get from Sohar to Al Ain. This will greatly ease travel between the two nations and promote both economic and cultural exchange.
The efficiency of cargo transportation between the two countries will be considerably increased by the freight trains’ top speeds of 120 km/h. Businesses will benefit from shorter travel times and lower transportation costs, which will boost their profitability and competitiveness.
Cooperation Agreement for Development of UAE-Oman Rail Network in Presence of Minister of Energy and Infrastructure.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of the Oman and Etihad Rail Company, was present for the signing ceremony, where the agreement was signed by Dr. Bakheet Saeed Al Katheeri, Executive Director of the UAE Industries Unit, and Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, believes that the development of the Oman-Etihad Rail network represents an expansion of the strategic relations and close historical ties between the UAE and Oman as well as the foundation for a strong partnership between Etihad Rail and Oman Rail.
By connecting economic, industrial, commercial, and residential areas with the railway system, this joint venture is anticipated to revolutionize infrastructure, transportation, and logistics as well as encourage economic activity and social unity.
According to Dr. Bakheet Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala’s UAE Investments platform, the memorandum of understanding signed by Mubadala, Oman, and Etihad Rail Company aims to identify and take advantage of new opportunities in the infrastructure, transportation, and logistics sectors.
The strategic alliance with Oman and Etihad Rail Company seeks to advance economic development and cooperation between the two nations, as well as generate value for all stakeholders.
A major step has been taken towards improving the infrastructure, transportation, and logistics sectors of both nations with the signing of the collaboration agreement between Mubadala and the Oman and Etihad Rail firm.
By connecting economic, industrial, commercial, and residential centres through a railway network, the joint venture aims to increase supply chain efficiency, create new cross-border trade opportunities, and provide a secure and environmentally friendly method of rail transportation for both people and goods.
This strategic partnership is clear evidence of both parties’ dedication to forging solid ties with influential organizations in order to encourage financial investment, economic expansion, and all development. Both the UAE and Oman’s national economies will surely benefit from the pact, which will also benefit all other parties involved.