Oman has formally ratified its railway agreement with the United Arab Emirates, clearing another major step for the $2.5 billion Hafeet Rail project as construction advances on the first direct rail connection between the two countries.
Sultan Haitham bin Tarik issued Royal Decree 75/2026 on September 3, ratifying the bilateral agreement signed on June 21. The decree took effect immediately and provides the formal framework for the development of the cross-border railway.
Hafeet Rail is building a 238-kilometer line connecting Sohar in Oman with the UAE national rail network via Al Buraimi and Al Ain. The joint venture is backed by Etihad Rail, Oman Rail and Mubadala Investment Company, bringing together the two countries’ rail and investment entities.
The project was reported to be around 40% complete in May 2026. Construction includes 60 bridges with a combined length of more than six kilometers, as well as tunnels extending for about 2.5 kilometers.
Faster Passenger Links Between Oman and the UAE
Passenger trains are designed to operate at speeds of up to 200 kilometers per hour and carry roughly 350 to 400 passengers. Once the line opens, the journey between Sohar and Abu Dhabi is expected to take around 100 minutes, while travel between Sohar and Al Ain could take about 47 minutes.
That would create a new cross-border alternative to road travel between two of the Gulf’s most closely connected economies. The railway will also link Oman more directly into the UAE’s expanding national rail system, giving passengers access to a wider network as Etihad Rail develops its own passenger services.
For travelers, the significance goes beyond shorter journey times. A direct international rail service would add a new transport option between Oman and the UAE in a region where most cross-border passenger movement is currently handled by road or air.
A Major Freight and Logistics Corridor
Freight is expected to be just as important as passenger traffic. Trains will operate at speeds of up to 120 kilometers per hour, connecting Sohar Port and surrounding industrial areas with the UAE’s logistics network.
The project is designed to cut freight transit times between Sohar and Abu Dhabi from roughly five to eight hours by road to about 100 minutes by rail. That could make the corridor particularly valuable for moving raw materials, industrial goods and finished products between ports, manufacturing zones and regional markets.
Hafeet Rail has an estimated investment value of $2.5 billion and has secured about $1.5 billion in project financing from regional and international banks. The line is also expected to reduce reliance on heavy road freight, helping lower congestion and transport-related emissions.
Beyond the immediate bilateral benefits, Hafeet Rail has wider regional significance. The project is expected to become the first operational cross-border railway directly linking two Gulf Cooperation Council countries, giving it potential importance as a model for future rail integration across the Arabian Peninsula.
For Oman and the UAE, the September ratification turns the project’s political commitment into a stronger legal foundation. With construction already well underway, Hafeet Rail is moving closer to becoming one of the Gulf’s most important new transport links, combining passenger mobility, logistics and regional economic integration in a single cross-border corridor.
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