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Hafeet Rail has secured a bank financing totalling USD 1.5 billion for the construction of Omani – Emirati railway network.
The financing is ensured by a consortium of five UAE financial institutions (Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, Abu Dhabi Islamic Bank and Ajman Bank) while on the Oman side, other nine banks committed to finance the project (Ahli Bank, Bank Dhofar, Bank Muscat, National Bank of Oman, Oman Arab Bank, Ahli Islamic Bank, Bank Muscat’s Meethaq Islamic Banking unit, Bank Nizwa and Alizz Islamic Bank).
In addition, the National Bank of Kuwait, Arab Bank of Jordan and Standard Chartered Bank from the UK are the other financial institutions to support the project.
The 303 km first line to be constructed will start in Sohar, Oman, towards Abu Dhabi in the UAE. The strategic project is estimated at USD 3 billion. The project also includes the construction of 60 bridges, some towering up to 34 metres in height, and tunnels stretching 2.5 km in length.
In October, the company appointed Systra to provide administrative and engineering consultancy services for the joint network. Under the terms of the agreement, Systra will deliver comprehensive technical support for the joint railway network, which includes contract management, overseeing the performance of contractors and suppliers to ensure full compliance with all requirements and standards, and providing essential technical support for managing health, environmental, safety, and security standards. Additionally, the French company will manage and monitor the project schedule, review engineering designs, and supervise project execution, testing and commissioning up to the start of operations.
“Engaging Systra as our administrative and engineering consultant marks a pivotal milestone for the UAE-Oman rail network project. This partnership guarantees the highest levels of safety and security, in line with international standards. Furthermore, we are dedicated to fostering the development of national talent in both countries by harnessing Systra’s unparalleled expertise and experience,” said Ahmed Al Bulushi, Member of the Board of Hafeet Rail.
The new line which will connect the two countries features the best international safety, security, and environmental standards, to provide faster and safer passenger and freight services. The passenger trains are designed to reduce travel time from Sohar to Abu Dhabi to 1 hour 40 minutes, and from Sohar to Al Ain to 47 minutes, travelling at a maximum speed of 200 km/h. Meanwhile, the freight trains will run up to 120 km/h. Connecting five major ports and several industrial and free zones across both nations, Hafeet Rail promises a 40% reduction in shipping costs and a 50% reduction in transit times compared to traditional land transportation methods.
In May, Hafeet Rail launched preparatory work for the construction of the transformative railway connection.
Recently, Hafeet Rail announced the awarding of civil works contracts for the joint network to an Omani – Emirati alliance led by Trojan Construction Group (NPC) and Galfar Engineering and Contracting. Additionally, the systems and integration contracts were awarded to a joint venture between Siemens Mobility and HAC to equip the trains with the latest technologies.
Hafeet Rail, formerly the Oman-Etihad Rail Company, is the developer and future operator of Omani – Emirati railway network which will play an essential role in the infrastructure, transport, and logistics sectors of both countries. By improving the connectivity of sea and land ports, manufacturing centers, and major markets, the network will facilitate trade and enhance the nation’s efforts to achieve sustainability and climate neutrality goals. |
