The UAE-Oman Hafeet Rail project, aimed at linking the UAE National Railway Network with Oman’s Sohar Port, has reached financial closure.
The US$2.5 billion project secured US$1.5 billion in project finance debt from UAE, Omani, regional, and international banks, using both conventional and Islamic financing options in UAE dirhams and Omani rials.
The announcement was made during the inaugural Global Rail Transport Infrastructure Exhibition & Conference (Global Rail 2024), held in Abu Dhabi. Hafeet Rail, a joint venture between Etihad Rail, Mubadala, and Asyad Group, is overseeing the 238-kilometre railway network, which will include 60 bridges and tunnels spanning 2.5 kilometres.
The consortium of UAE banks involved in the deal includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, 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 more.
International and regional banks participating include Jordan’s Arab Bank, Kuwait’s National Bank of Kuwait, and the UK’s Standard Chartered Bank. Standard Chartered acted as 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 like mining, agriculture, and petrochemicals. Each freight train will carry over 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 civil works awarded to an Omani-Emirati consortium led by Trojan Construction Group.
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