Oman Approves UAE Railway Agreement, Boosting $2.5bn Hafeet Rail Project

Sep 4, 2026

67 min

Sep 4, 2026 21:31

Oman ratifies UAE railway agreement as $2.5bn Hafeet Rail project advances

## Oman Ratifies Railway Agreement

Oman's Sultan Haitham bin Tarik has ratified a railway agreement with the UAE, marking a significant step forward for the $2.5 billion Hafeet Rail project. This development was formalized under Royal Decree No. 75/2026, one of ten decrees issued recently.

## Project Details

The Hafeet Rail project, a collaboration between Etihad Rail, Oman Rail, and Mubadala Investment Company, aims to connect Sohar in Oman with the UAE's rail network. The 238-kilometer railway will pass through Al Buraimi and Al Ain, enhancing connectivity between the two nations.

## Economic Impact

The railway is designed to facilitate both passenger and freight transport. Passenger trains will travel at speeds up to 200 km/h, reducing travel time between Sohar and Abu Dhabi to approximately 100 minutes. Freight trains will carry up to 15,000 tonnes of cargo, supporting industries such as mining, steel, and petrochemicals.

## Construction Progress

As of April, construction had reached 40% completion, with significant progress in areas like Al Ain and Sohar. The project involves extensive engineering work, including tunnels and bridges, to navigate challenging terrains.

## Regional Significance

Hafeet Rail is the first railway to connect two Gulf states, forming part of a broader regional transport network. The project gained momentum during Sultan Haitham's visit to the UAE in 2024, when key agreements and contracts were finalized.

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