The UAE-Oman railway project, the Hafeet Rail, is set to significantly transform regional freight transport by providing a high-speed, efficient rail link between the United Arab Emirates (UAE) and Oman.
The 303 KM railway will connect the UAE’s Etihad Rail network at Al Ain with Oman’s Sohar Port, facilitating the seamless movement of goods between the two nations. It will redefine the possibilities for businesses to be able to get products to their customer’s countries more efficiently.
New trade corridors to openÂ
Connecting the UAE and Oman by railways opens new markets for businesses in both countries. Companies can expand their customer base and explore new business opportunities across the border. The railway will provide a reliable and efficient mode of transport for goods, reducing transit times and costs associated with other modes of transport such as road and air transportation.
Railways are cost-effective for large, heavy shipments over land, often cheaper than trucking over long distances. This means there will be a cost reduction for businesses and customers as a result of extended rail networks.
Opportunities for logistics and transport sectorsÂ
It will enable businesses to optimize their supply chains and respond more swiftly to market demands. The project encourages economic integration between the UAE and Oman, promoting trade and investment. This integration can lead to a more cohesive economic environment, benefiting businesses through increased stability and growth prospects.
The Hafeet Rail project has awarded significant contracts for its construction and operation, including agreements for railway facilities and stock. These developments offer opportunities for construction firms, engineering consultancies, and equipment suppliers to participate in the building and equipping of the railway infrastructure.
Advancing GCC’s position as a global logistics hub
The integration of rail networks across GCC countries will improve efficiency for industries reliant on timely deliveries, such as manufacturing and retail which are currently heavily reliant on road connectivity.
A well-connected GCC is more appealing to foreign investors as it expands how businesses can connect with their clients and customers. As investors start to see solid infrastructure improvements, new cross-border opportunities will present themselves.
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Role of international partnerships
Companies should treat this as an opportunity to engage in sub-contracting such as supply chain management and technology integration.
There are also significant opportunities for specialized services such as consulting, safety management, and project financing. Companies can provide their expertise and services to align the railway with best practices which will set the project up for success.
Simon Gordon, Managing Director Sovereign PPG
