Oman’s Sultan Haitham bin Tariq has approved an agreement with the UAE to develop a cross-border railway link, marking another major step forward for the $2.5 billion Hafeet Rail project.
The agreement was approved under Royal Decree No. 75/2026. Oman and the UAE signed the agreement to develop the railway connection on June 21, with the Royal Decree coming into effect on September 3.
The Hafeet Rail project is being developed through a joint venture involving Etihad Rail, Oman Rail and Mubadala Investment Company. The planned 238-kilometre railway will connect the industrial city of Sohar in Oman with the UAE’s national rail network, passing through Al Buraimi and Al Ain.
The project is designed to strengthen freight connectivity between Oman and the UAE and improve the efficiency of goods movement across the two countries. The rail link is expected to facilitate faster transportation of raw materials and finished products between ports, industrial zones and markets.
The direct connection between Sohar and the UAE’s wider rail and logistics network is also expected to support trade and strengthen regional supply chains.
Around $1.5 billion in financing for the project has been secured through a consortium of local and international banks, providing further momentum to the development of the cross-border railway.
