A key agreement signed between the UAE and Oman will see the establishment of a railway network that will link the two countries — and cut travel time to as short as 47 minutes.

Etihad Rail — the developer and operator of the UAE National Rail Network — has inked a deal with the Sultanate’s Oman Rail to jointly establish an equally owned company, which will be called Oman-Etihad Rail Company.

With an overall investment power of $3 billion, this upcoming infrastructure will connect Oman’s Sohar Port to Abu Dhabi.

Spanning 303km, the railway will feature state-of-the-art passenger trains that can slash travel time from Sohar to Abu Dhabi to one hour and 40 minutes, and from Sohar to Al Ain to 47 minutes, travelling at a maximum speed of 200kph. Meanwhile, the freight trains will run up to 120kph.

The agreement was signed by Shadi Malak, CEO of Etihad Rail, and Abdulrahman Salim Al Hatmi, Group CEO of ASYAD.

The Abu Dhabi Government Media Office made the announcement in a tweet:

Under this agreement, the new company will lay the groundwork and workplan for the project, including its financial mechanisms and schedule. The company will also handle the design, development, and operation of the rail network, which connects Sohar and Abu Dhabi, in line with the standards of the two countries.

Built on the historic and strategic relations between the two countries, this major joint venture is an extension of the longstanding collaboration between Oman Rail and Etihad Rail – both of whom seek to create new prospects in the infrastructure, transport, and logistics industries by connecting the two countries via rail.

The two parties aim to unlock new opportunities by strengthening commercial exchange and social cohesion, connecting key urban centres, facilitating travel between communities and providing seamless transport solutions between economic and industrial zones in Oman and the UAE.