Dentons advised on the project financing and development of the Hafeet Rail project. This initiative marks the GCC’s first cross-border rail project, including the future connection between Abu Dhabi and Sohar Port in Oman. The US$3 billion Hafeet Rail project, sponsored by Etihad Rail and Oman Rail and supported by Mubadala Investment Company, has secured US$1.5 billion in project finance debt. This achievement reflects confidence from a diverse consortium of local, regional and global lenders, with support from Emirati and Omani banks highlighting the project’s importance to both nations. Spanning 238km, the railway network will include 60 bridges, some soaring up to 34 metres high, and tunnels extending up to 2.5km. It will connect five major ports and industrial and freezones across the UAE and Oman. According to a release, a single freight train journey on this network is likely to transport 15,000 tonnes of cargo, equivalent to 270 standard containers. Once operational, the railway will reduce travel time between Abu Dhabi and Sohar to just 100 minutes, with freight trains reaching speeds of 120kmph.
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