Oman and Etihad Rail Company (OER), the developer and operator of the UAE-Oman Rail Network, have signed a Memorandum of Understanding (MoU) with Emirates Steel Arkan, the UAE’s largest steel and building materials manufacturer, to facilitate the export of raw materials from the Sultanate of Oman to the UAE.
Under this agreement, OER will provide logistics solutions to manage the transportation of raw limestone, which Emirates Steel Arkan plans to import from Oman to its cement factories in Al Ain, UAE.
The MoU was signed by Eng. Ahmed Al Musawa Al Hashemi, CEO of OER, and Eng. Saeed Khalfan Al Ghafri, CEO of Emirates Steel, an Emirates Steel Arkan company (see below).
Commenting on the MoU, Eng. Ahmed Al Musawa Al Hashemi said: “We are proud to work with leading construction materials manufacturers such as Emirates Steel Arkan, further strengthening our strategic partnerships.
"This agreement represents the vision for this project, which was launched to link the Sultanate of Oman and the United Arab Emirates and aims to enhance cross-border trade between the two countries, linking centers of manufacturing and production, and connecting import/export points.
"As a result, this will create promising and sustainable business opportunities for the mining industry and construction materials production sector in Oman and the UAE.”
Oman and Etihad Rail will provide logistics solutions for Emirates Steel Arkan through annual transportation of 4 to 6 million tonnes of high-quality raw materials to Al Ain.
This ensures Emirates Steel Arkan can produce and export 2-3 million tonnes of finished goods to regional markets each year.
As the joint railway network will reduce dependence on cars and trucks, it will also drive transformation towards a low-carbon future, supporting both countries’ objectives to achieve net neutrality by 2050.
Read more: Egypt to Build 8 Logistics Zones