The Hafeet Rail project aims to connect the UAE and Oman. ARCHIVE

The UAE and Oman rail project, known as Hafeet Rail, has secured $1.5 billion in financing, bringing the project one step closer to connecting the two countries by train. This groundbreaking project aims to link the UAE with Oman via a rail network that will serve as a key conduit for trade and logistics between the two nations. The financing was announced during a ceremony attended by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail. The $2.5 billion joint project represents a collaboration between Etihad Rail, Oman Rail, and Mubadala, demonstrating the confidence that both local and international investors have in the initiative. The project’s financing was secured through a combination of local, regional, and international banks, with Standard Chartered and First Abu Dhabi Bank playing pivotal roles as financial advisors. Hafeet Rail will connect the UAE National Railway Network with the Port of Sohar in Oman, facilitating seamless trade and economic activity between the two countries. Shadi Malak, CEO of Etihad Rail, said, “The success of Hafeet Rail’s bank financing is a resounding vote of confidence in the immense potential of this transformative project. By connecting the UAE with Sohar Port, we are creating a vital artery for trade." The rail network is expected to provide significant socioeconomic benefits for both nations, further strengthening their economic competitiveness. Abdulrahman Al Hatmi, CEO of ASYAD Group, highlighted the strategic importance of the project: “The strong interest shown by leading banks in both countries to finance the project reflects the confidence in this strategic investment. It will enhance commercial activity and stimulate economic growth.” Once operational, the rail network will enhance the efficiency of transporting goods between the two nations, bolstering their position as critical trade hubs within the region. The partnership underscores the importance of collaboration in achieving shared prosperity and economic resilience. With construction underway, the Hafeet Rail project marks a new chapter in the UAE-Oman relationship, further cementing their role as leaders in regional infrastructure development. ICA/Expat Media
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