A single freight practice journey is anticipated to move over 15,000 tons of cargo, equal to about 270 normal containers
Hafeet Rail has finalized financial institution financing for the Hafeet Rail community venture, which can join the Port of Sohar with the United Arab Emirates (UAE). The overall financing quantities to OMR577 million ($1.5 million), backed by Omani and Emirati banks, in addition to regional and worldwide monetary establishments.
The signing ceremony happened beneath the auspices of Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, deputy chairman of the Presidential Courtroom for Improvement and Fallen Heroes’ Affairs, and chairman of Etihad Rail. This announcement was made on the inaugural International Rail Transport Infrastructure Exhibition & Convention – International Rail 2024.
Unified transport community
The OMR961 million joint initiative, being applied and operated by Hafeet Rail, showcases important confidence from a various group of native, regional, and worldwide lenders, highlighting the venture’s strategic relevance to each nations. This Omani-Emirati railway venture represents the primary phase of a unified transport and logistics community that can profit the area economically and competitively. Moreover, the collaboration includes Etihad Rail, Oman Rail, and Mubadala, reflecting a shared imaginative and prescient for a related and affluent future, with Etihad Rail and ASYAD Group holding the biggest shares within the enterprise.
Learn extra: UAE-Oman rail community: Logistics hub to usher a brand new period of development
Financial development catalyst
Moreover, Eng. Abdulrahman Al Hatmi, CEO of ASYAD Group, famous the substantial curiosity from main banks in each international locations to finance the venture, indicating sturdy confidence on this strategic funding. He talked about that Hafeet Rail’s success in securing financial institution financing not solely strengthens the transport and logistics sector but in addition fuels financial development and enhances business interactions between the 2 nations. He asserted that this joint rail community would undeniably increase the competitiveness of each international locations, positioning the area as an important business and funding hub linked to international markets through ports and state-of-the-art airports.
Essential commerce hyperlink
Shadi Malak, CEO of Etihad Rail, expressed that the profitable financial institution financing for Hafeet Rail serves as a robust endorsement of the venture’s transformative potential. He additional defined that by linking the UAE Nationwide Railway Community with Sohar Port, they’re establishing a vital commerce artery that enhances efficiencies and solidifies the area’s standing as a world logistics heart. Furthermore, he emphasised that the bond between the UAE and Oman, rooted in a shared historical past, is now being additional strengthened with Hafeet Rail, paving the way in which for progress, prosperity, and limitless alternatives for his or her residents.
Monetary advisory and assist
Normal Chartered served because the Lead Monetary Advisor, enjoying a vital function in securing the required debt funding for the venture’s improvement since early 2023, whereas First Abu Dhabi Financial institution acted as Co-Monetary Advisor. The venture finance debt was acquired from a mixture of UAE, Omani, regional, and worldwide banks throughout each typical and Islamic financing buildings in AED and OMR currencies.
Consortium of banks concerned
The consortium of banks engaged on this financing consists of a number of distinguished establishments from the UAE, comparable to Abu Dhabi Business Financial institution, Arab Financial institution, Business Financial institution of Dubai, First Abu Dhabi Financial institution, Nationwide Financial institution of Kuwait, Normal Chartered Financial institution, Abu Dhabi Islamic Financial institution, and Financial institution Ajman. Moreover, 9 banks from Oman participated, together with Ahli Financial institution, Financial institution Dhofar, Financial institution Muscat, Nationwide Financial institution of Oman, Oman Arab Financial institution, Ahli Islamic Financial institution, Financial institution Muscat (Meethaq Islamic Banking), Financial institution Nizwa, and Alizz Islamic Financial institution.
Engineering and infrastructure particulars
The railway community will span 238 km, that includes 60 bridges—some reaching heights of 34 meters—and tunnels extending 2.5 km. It’ll join 5 main ports and varied industrial and free zones throughout the 2 international locations. A single freight practice journey on this community is anticipated to move over 15,000 tons of cargo, equal to round 270 normal containers. Benefitting sectors embody mining, iron and metal, agriculture, meals, retail, e-commerce, and petrochemicals.
Operational effectivity and pace
Upon turning into operational, the railway will cut back journey time between Abu Dhabi and Sohar to simply 100 minutes, with freight trains able to reaching speeds of 120 km/h. Passenger trains will accommodate as much as 400 vacationers at speeds of 200 km/h.
Alignment with nationwide visions
The Hafeet Rail venture aligns with the UAE’s Centennial Plan 2071 and Oman Imaginative and prescient 2040, selling financial development, social cohesion, and sustainable improvement in each nations. This joint community pays tribute to Jebel Hafeet, which holds each historic and strategic significance, and goals to strengthen commerce relations, improve tourism, and enhance connectivity between the 2 international locations and the broader area.
Dedication to monetary optimization
Hafeet Rail has efficiently diminished the preliminary requirement for financial institution financing for the Emirati-Omani rail community from $3 billion to $2.5 billion. This discount demonstrates the corporate’s strategic administration and dedication to optimizing assets whereas advancing this important venture. Even with a smaller price range, Hafeet Rail stays devoted to delivering distinctive high quality and effectivity, adhering to the best international requirements.
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