UAE-Oman Hafeet Rail project achieves key financial milestone
Funding of US$1.5 billion finalized for the ambitious rail project linking the UAE national network to Oman’s Sohar port
UAE-Oman Hafid Rail Project Secures Funding and Enhances Regional Connectivity
The US$2.5 billion project has secured a US$1.5 billion project financing loan from UAE, Omani, regional and international banks, using conventional and Islamic financing options in UAE dirhams and Omani riyals.
The announcement was made at the opening ceremony of the World Rail Transport Infrastructure Exhibition and Conference (Global Rail 2024) held in Abu Dhabi. Hafeet Rail, a joint venture between Etihad Rail, Mubadala and Asyad Group, oversees a 238 kilometer railway network comprising 60 bridges and 2.5 kilometers of tunnels.
The consortium of UAE banks involved in the deal includes Abu Dhabi Commercial Bank, Dubai Commercial Bank, First Abu Dhabi Bank, Abu Dhabi Islamic Bank and Ajman Bank. Omani banks include Ahli Bank, Bank Dhofar, Bank Muscat, National Bank of Oman, Oman Arab Bank and many more.
International and regional banks include Arab Bank of Jordan, National Bank of Kuwait and Standard Chartered Bank of England. Standard Chartered acted as the lead financial advisor, while First Abu Dhabi Bank was the co-financial advisor.
The railway is expected to connect five major ports and industrial zones across the UAE and Oman, supporting sectors such as mining, agriculture and petrochemicals. Each freight train carries 15,000 tonnes of cargo equivalent to 270 containers.
The total project cost was reduced from US$3 billion to US$2.5 billion, with the civil works awarded to an Omani-Emirati consortium led by Trojan Construction Group.
