The Hafeet Rail network project, connecting the UAE with the Port of Sohar in Oman, has secured USD 1.5 billion in project finance debt. This financing agreement was announced during the Global Rail Transport Infrastructure Exhibition & Conference – Global Rail 2024, held in Abu Dhabi. The event was attended by His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes’ Affairs and Chairman of Etihad Rail.
The announcement highlighted the involvement of Emirati and Omani banks, along with regional and international financial institutions. "The strong interest shown by leading banks in both countries to finance the project reflects the strong confidence in this strategic investment," stated Eng. Abdulrahman Al Hatmi, CEO of Asyad Group.
H.E. Shadi Malak, CEO of Etihad Rail, emphasized the significance of this financing as a vote of confidence in the transformative potential of Hafeet Rail. "By connecting the UAE National Railway Network with Sohar Port, we are creating a vital artery for trade," he remarked.
Standard Chartered served as Lead Financial Advisor for securing necessary funding since early 2023, while First Abu Dhabi Bank acted as Co-Financial Advisor. Rola Abu Manneh from Standard Chartered commented on their role: “At Standard Chartered, we are focused on enabling greater connectivity between Middle East markets.”
The consortium includes major banks from both nations such as Abu Dhabi Commercial Bank and Bank Muscat among others. The railway will span 238 km and feature infrastructure like bridges and tunnels to facilitate freight transport and passenger travel between Abu Dhabi and Sohar.
Hafeet Rail's initiative is aligned with national development plans like UAE’s Centennial Plan 2071 and Oman Vision 2040. The project's budget has been optimized from an initial USD 3 billion to USD 2.5 billion without compromising quality or efficiency.
About Hafeet Rail: Established in May 2024 as a joint venture between Etihad Rail, Oman Rail, and Mubadala Investment Company, Hafeet Rail aims to enhance trade, tourism, and connectivity across borders through this landmark railway project.