Oman ratifies UAE railway agreement as $2.5bn Hafeet Rail project advances
Muscat: Oman's Sultan Haitham bin Tarik has ratified an agreement between Sultanate and the UAE to develop a railway connection between the two countries, clearing another formal step for the $2.5 billion Hafeet Rail project as construction progresses on the cross-border network. The agreement was ratified under Royal Decree No. 75/2026, one of 10 Royal Decrees issued by Sultan Haitham on…
Oman's Sultan Haitham bin Tarik has officially endorsed the railway pact with the UAE, paving the way for the $2.5 billion Hafeet Rail project to advance. The agreement, ratified under Royal Decree No. 75/2026, follows a June 21, 2026 signing ceremony. The decree took effect on September 3, 2026. The Hafeet Rail project, a collaboration between Etihad Rail, Oman Rail, and Mubadala Investment Company, aims to create a 238-kilometer railway connecting Oman's industrial hub of Sohar with the UAE's railway network.
The project, valued at $2.5 billion, is expected to facilitate the movement of goods and passengers between ports, industrial zones, and markets. With construction at 40%, the railway is projected to facilitate travel between Sohar and Abu Dhabi in approximately 100 minutes and Sohar and Al Ain in around 47 minutes. Additionally, freight trains will transport over 15,000 tonnes of cargo per train, benefiting industries such as mining, steel, petrochemicals, agriculture, food, retail, and e-commerce.
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