Hafeet Rail has secured $1.5 billion in financing from a consortium of Omani and Emirati banks. Regional and international financial institutions are also contributing. The Oman-UAE Railway Project is a key transport and logistics link. It aims to strengthen trade relations and boost economic activity between the two countries.
The 238-kilometre network will connect major ports, industrial hubs and free zones. It will provide significant benefits to sectors such as mining, petrochemicals and e-commerce. The rail network will also reduce travel time between Abu Dhabi and Sohar to 100 minutes. Freight trains will be able to carry 15,000 tonnes of goods per trip. The maximum speed of the freight train will be 120 kilometres per hour. The passenger train will reach a maximum speed of 200 km/h. Each train will be able to carry up to 400 passengers.
The project, jointly operated by Etihad Rail and Oman Rail, has received strong backing from local and international banks. The financing was led by Standard Chartered Bank, with First Abu Dhabi Bank co-advising, and includes both conventional and Islamic funding sources.
With its strategic location and state-of-the-art infrastructure, the railway is expected to enhance the region’s competitiveness and cement its position as a key transportation hub, providing a critical link to global markets.
