The UAE-Oman Hafeet rail project, which aims to connect the UAE national rail network with Oman’s Sohar Port, has reached financing completion.
The project is valued at $2.5 billion from a combination of UAE, Omani, local and international banks, using both conventional and Islamic finance tranches with UAE dirhams and Omani rial. Secured financing obligations.
The announcement was made at the 1st World Rail Transport Infrastructure Exhibition & Conference (Global Rail 2024) held in Abu Dhabi on Wednesday.
The 303-kilometre (km)-long Hafeet rail project is a joint venture between Etihad Railways, Oman’s Ashad Group and Abu Dhabi-based Mubadala, which is responsible for the implementation and operation of the 238-kilometre (km) rail network. I am. The network will include 60 bridges, some reaching a height of 34 meters, and 2.5 km of tunnels.
Standard Chartered acted as lead financial advisor on the project, with First Abu Dhabi Bank acting as co-financial advisor.
The consortium of UAE banks included Abu Dhabi Commercial Bank, Dubai Commercial Bank, First Abu Dhabi Bank, Abu Dhabi Islamic Bank and Ajman Bank. Omani banks involved in the transaction include Ahli Bank, Dhofar Bank, Muscat Bank, National Bank of Oman, Oman Arab Bank, Ahli Islamic Bank, Muscat Bank’s Mitak Islamic Banking Division, Nizwa Bank, and Aliz Islamic Bank. is included. Regional and international banks include Arab Bank of Jordan, Kuwait National Bank of Kuwait, and Standard Chartered Bank of the United Kingdom.
The UAE-Oman Railway will link five major ports and various industrial and free zones in both countries, facilitating sectors such as mining, steel, agriculture, food, retail, e-commerce and petrochemicals. The system is expected to transport more than 15,000 tonnes of cargo per freight train round trip, equivalent to approximately 270 standard containers. The overall cost of the project has been reduced to $2.5 billion from the originally announced $3 billion.
According to a statement from the Abu Dhabi Media Office in May 2024, the tender for the civil works and construction of the joint network was won by the Omani-Emirati Federation, led by Trojan Construction Group and Gulfar Engineering, and by TriStar. Contracted with Engineering and Construction and contracted with National Infrastructure Construction. company. The tender for the integration of the system and rail network was won by a joint venture between Siemens and Hassan Alam Construction.