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Oman-UAE Rail Project Gains Momentum with $2.5 Billion Investment

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The strategic Oman-UAE railway project is making steady headway, with construction teams actively laying tracks as part of a $2.5 billion joint venture that promises to reshape regional connectivity and trade logistics.

Led by Hafeet Rail, the cross-border network aims to link key economic zones in both countries, spanning 238 kilometers and connecting five major ports and industrial areas. Heavy machinery is already at work, signaling rapid development.

“Every day brings new progress on the path to connecting the UAE and the Sultanate of Oman via the Hafeet Railway Network,” the company tweeted.

The railway, a milestone under Oman Vision 2040 and the UAE Centennial 2071, is designed to enhance integration between the two Gulf neighbors. It is expected to reduce freight costsspeed up transport, and strengthen bilateral economic ties.

When completed, freight trains will reach speeds of 120 km/h, capable of hauling 15,000 tonnes of cargo per trip — equivalent to roughly 270 containersPassenger trains, traveling at speeds of up to 200 km/h, will cut the Abu Dhabi–Sohar journey time to just 100 minutes, with each train carrying up to 400 passengers.

The project will feature 60 bridges and tunnels extending over 2.5 kilometers and is seen as a pivotal development in the region’s ambition to become a global logistics hub.

By linking Sohar Port to the UAE’s existing rail network, the new corridor will streamline trade flows, improve customs integration, and reduce reliance on road transport — thus lowering emissions and improving efficiency.

The UAE-Oman rail initiative complements wider regional infrastructure projects, such as Etihad Rail, and reflects the Gulf's broader investment in sustainable, multimodal transportation systems.

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