Oman and UAE Launch $3 Billion Oman-Etihad Rail Company to Link Sohar and Abu Dhabi

Oman Rail and Etihad Rail have signed a landmark agreement to establish the Oman-Etihad Rail Company, a jointly owned enterprise with an investment value of USD 3 billion. The company will design, develop, and operate a 303-kilometre railway network connecting Sohar Port in Oman to Abu Dhabi in the UAE, marking a major step in regional transport integration. The new entity will oversee the project’s financial and operational frameworks and ensure the network aligns with both nations’ rail standards. The signing ceremony, attended by Eng. Abdulrahman Salim Al Hatmi, CEO of Asyad Group, and Eng. Shadi Malak, CEO of Etihad Rail, reflects a shared commitment to strengthening infrastructure and trade connectivity across the Gulf.

Built upon historic and strategic ties between Oman and the UAE, the joint venture seeks to enhance economic, social, and industrial cooperation. The rail line will serve both passenger and freight operations, adhering to top international safety, environmental, and efficiency standards. Passenger trains will operate at speeds of up to 200 km/h, reducing travel time from Sohar to Abu Dhabi to 1 hour 40 minutes, and from Sohar to Al Ain to 47 minutes. Freight trains, reaching 120 km/h, will enhance logistics performance and cross-border trade, linking ports and industrial zones to foster seamless regional supply chains.

The Oman-UAE railway is expected to generate wide-ranging economic and social benefits, from job creation and private sector investment opportunities to boosted competitiveness in global trade. Both governments envision the project as a catalyst for diversified growth, tourism development, and enhanced quality of life. By integrating advanced rail technologies and sustainable practices, the initiative will reinforce the two nations’ positions as key logistics hubs in the region. As Eng. Al Hatmi noted, the railway will “empower manufacturing and industrial activities to expand beyond borders,” while Etihad Rail’s CEO Shadi Malak highlighted that the project “ushers in a new chapter of collaboration and prosperity” for both countries.