Abu Dhabi investment fund to back new UAE-Oman railway
Abu Dhabi’s state-owned holding firm Mubadala Investment Company will back the planned 3-billion-dollar railway between the United Arab Emirates (UAE) and Oman, it announced this week.
Mubadala Investment Company has signed a cooperation agreement to that end with the Oman and Etihad Rail Company, a joint venture between Oman Rail and Etihad Rail, the developer and operator of the UAE’s national railway network. This tie-up will be the developer of the proposed 303-kilometre line between the Omani port of Sohar and the UAE rail network.
As a part of the agreement with Mubadala, the parties involved will set up working groups and committees to share expertise. They will also work together in developing economic and financial feasibility studies.
Using the new line, travel time for passenger trains between Sohar in Oman and one of UAE’s emirates Abu Dhabi will be reduced to 1 hour and 40 minutes. As trains will be travelling at 200 kilometres per hour, travel time between Sohar and Al Ain will be only 47 minutes in the future. Rail freight will stand to benefit too, as the new line enables speeds of up to 120 kilometres for freight trains.
“The signing of the cooperation agreement between Oman and Etihad Rail company and Mubadala reflects the commitment of both parties to building strategic partnerships and strengthening cooperation with leading entities to promote investment, economic growth, and comprehensive development in both countries”, Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, said in comments on the agreement.
Bakheet Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala’s UAE Investments platform, added that the agreement is “is designed to explore and unlock new opportunities in the infrastructure, transport, and logistics industries.”
Add your comment
Log in through one of the following social media partners to comment.