Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, has signed a co-operation agreement with Mubadala Investment Company, a sovereign investor in Abu Dhabi, to support the development of the 303km railway network linking Oman and the UAE, at an overall investment value of $3 billion.
Announcing the strategic deal, Etihad Rail said the partnership comes in line with the two parties’ efforts to explore investment opportunities in the railway sector and strengthen cooperation to support the Oman and Etihad Rail Company in accelerating the planning and execution process of the UAE-Oman Rail Network.
The cooperation agreement also includes formation of working groups and joint committees to benefit from the shared expertise and knowledge, joint efforts in developing economic and financial feasibility studies, in addition to joint investments in the development of the UAE-Oman railway network and cooperation to enhance the project’s added value.
The agreement was signed by Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company, and Dr Bakheet Saeed Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala’s UAE Investments platformin the presence of Suhail bin Mohammed Faraj Faris Al Mazrouei, the UAE Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company and other board members.
Al Mazrouei said: "The establishment of Oman-Etihad Rail network, is an extension of the strategic relations and strong historical ties between the UAE and the Sultanate of Oman, and the foundation of the strong partnership between Etihad Rail and Oman Rail."
"The joint venture will transform the infrastructure, transport, and logistics sectors, and enhance commercial movement and social cohesion, by linking economic, industrial, commercial, and residential centers through the railway network," he stated.
The signing of the deal reflects the commitment of both parties to building strategic partnerships and strengthening co-operation with leading entities to promote investment, economic growth, and comprehensive development in both countries," he noted.
"The agreement will contribute to enhancing and developing the national economy in the UAE and the Sultanate by improving supply chain efficiency, opening new cross-border trade opportunities, and providing safe and sustainable means of transportation via rail for passengers and goods, he added.
Al Katheeri pointed out that the agreement was designed to explore and unlock new opportunities in the infrastructure, transport, and logistics industries.
"The strategic partnership with Oman and Etihad Rail Company is aimed at driving economic development and collaboration amongst both countries as well as create value for all stakeholders," he added.-TradeArabia News Service
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