Muscat, 30 September 2022 (TDI): An agreement regarding the Oman-Etihad railway network has been signed between Oman and the United Arab Emirates.
It was signed during the state visit of Sheikh Mohammed bin Zayed Al Nahyan, the President of UAE to Oman, by the national railway of Oman and the national railway of UAE. The agreement is worth $3 billion.
On the sidelines of the UAE President’s visit to Oman, Etihad Rail and Oman Rail agree to establish Oman-Etihad Rail Company – with an investment of more than AED11 billion – to build and operate a railway network linking Omani Sohar Port to the UAE’s national rail network. pic.twitter.com/VR2139CetY
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About the Railway agreement
The new firm is made by the two authorities which would be called “Oman and Al-Ittihad company”. Under this agreement, the newly made company will be taking care of the whole project supervision.
It will also implement financial mechanisms of the railway network from Sohar port to Abu Dhabi UAE national railway network.
This partnership will further strengthen the relationships between Oman and Abu Dhabi. It will also make the ties between the countries stronger economically commercially, and socially and will further bolster business activities.
Moreover, the passenger train will cover 303 kilometers distance in 147 minutes from Sohar to Al Ain at a speed of 200 kilometers per hour while the cargo speed will be 120 kilometers per hour.
The group CEO of ASYAD, Oman’s global integrated logistics service provider, Abdulrahman Salim Al Hatmi, stated that it will offer trade and logistics companies outstanding investment opportunities.
Also read: Pakistan and UAE discuss investment opportunities
It will empower manufacturing & industrial activities to quickly expand beyond borders. Also, the envisioned network will complement our comprehensive set of ports and logistics assets, augment our competitiveness & open faster access to global markets.
This project will prove itself with time as the traders of Oman will expand their access to regional and global markets. This project will yield economic, social, and strategic benefits, he added.
This railway agreement will increase trade between the countries as it will boost the supply chain. It will reduce the transportation cost of trans-border trade compared to other sources of transport.
