meed-logo

line1 line2 line3
SIGN IN / REGISTER

Hafeet Rail signs $1.5bn project financing agreements

9 October 2024

Register for MEED's 14-day trial access 

The UAE’s Etihad Rail and Mubadala and Oman’s Asyad Group have signed project financing agreements worth $1.5bn with banks for the Hafeet Rail project, which will connect the two countries.

The agreements were announced during the opening ceremony of the GlobalRail event held in Abu Dhabi on 8 October.

Local and international banks participating in the financing arrangement include the UAE’s Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Bank Ajman and Commercial Bank of Dubai, Oman’s Ahli Bank, Bank Dhofar, Bank Muscat, National Bank of Oman, Oman Arab Bank, Ahli Islamic Bank, Meethaq Islamic Banking, Bank Nizwa and Alizz Islamic Bank, Jordan’s Arab Bank, Kuwait's National Bank of Kuwait and UK-based Standard Chartered.

Established in September 2022, the Oman-Etihad Rail Company (OERC) will implement the Hafeet Rail project.

The project received a push after OERC inked a strategic agreement with Abu Dhabi-based Mubadala Investment Company to support its development.

The UAE-Oman Rail Network is set to improve the two countries’ competitiveness in global trade and help establish their positions as logistics hubs that serve as gateways to regional markets.

In April, the client awarded contracts for three civil works packages for the railway project linking Oman and the UAE.

The estimated AED5.5bn ($1.5bn) design-and-build contract was awarded to a consortium of Abu Dhabi-based National Projects Construction (NPC), National Infrastructure Construction Company, Tristar Engineering & Construction and Oman’s Galfar Engineering & Contracting.

NPC is the infrastructure development arm of the Abu Dhabi-based Trojan Construction Group, a subsidiary of local investment firm Alpha Dhabi.

OERC also awarded a separate contract for the rolling stock systems and integration contracts to German firm Siemens and Egyptian contractor Hassan Allam Construction.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12676377/main.jpg
Yasir Iqbal

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait reports war damage on oil infrastructure

    6 April 2026

    State-owned Kuwait Petroleum Corporation (KPC) has said that some units have sustained significant damage following Iranian strikes on oil and gas infrastructure in recent days.

    Strikes hit facilities operated by its subsidiaries Petrochemical Industries Company (PIC) and Kuwait National Petroleum ​Company (KNPC).

    Strikes also hit the offices of KPC and the Oil Ministry, as well as power and water desalination plants.

    In a statement released on 5 April, KPC said: “On 5 April, 2026, the oil sector complex located in Shuwaikh, which houses the KPC building and the Ministry of Oil, was attacked by drones, resulting in a fire at the building and significant material damage.

    “Several operational facilities belonging to the corporation, both at KNPC [sites] and PIC [sites], were also subjected to similar drone attacks, leading to fires at a number of these facilities, and causing significant material damage.

    “Emergency and firefighting teams from the concerned companies, with the support of the General Fire Force, implemented the approved response plans.

    “The teams continue to work to control the fires and prevent their spread to adjacent facilities.

    “The corporation confirmed, thanks be to God, that no human casualties were recorded as a result of these attacks.”

    In a television address, Hisham Ahmed Al-Rifai, a spokesperson for the company, said that the offices of KPC and the Oil Ministry were targeted at dawn on 5 April.

    He called the attack “reprehensible” and said that Iran used drones to carry it out.

    Al-Rifai said that KPC is still assessing damage to the office building and to the PIC and KNPC facilities.

    The past few days have seen significant damage dealt to a range of oil and gas infrastructure.

    On 3 April, early-morning strikes hit Kuwait’s Al-Ahmadi oil refinery, causing fires in a “number of operational units”.

    The strikes on 3 April were the third time that the refinery had been hit since the regional conflict started.

    The refining facility is one of the largest in the Middle East and is an important source of refined products for both the domestic market and exports.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16265360/main.gif
    Wil Crisp
  • Safety and security matters

    3 April 2026

    Commentary
    Colin Foreman
    Editor

    Read the April issue of MEED Business Review

    Employment and investment opportunities in a low or no-tax environment have been key attractions for people and businesses located in the GCC for decades. Another crucial factor has been safety and security.

    That reputation has been tested by the missile and drone attacks that began on 28 February. Whether the GCC’s safe haven status has been damaged depends on perspective. 

    For some, the fact that attacks occurred fundamentally changes how the region is viewed. For others, the ability to absorb a serious shock, respond quickly, and keep daily life and businesses functioning demonstrates resilience.

    Any assessment of safety is also relative. Many people and businesses that relocate in the GCC do so not only for opportunity, but because of dissatisfaction elsewhere. Common reasons include limited economic prospects, high taxation, distrust in political leadership and concerns about personal safety. Even with the recent conflict, the GCC may still compare favourably for those considering these factors.

    There is no doubt that missile and drone attacks are extremely dangerous, and the fear of further incidents can linger. Even if attacks are infrequent, the uncertainty matters. It can influence personal decisions, travel advice, and the cost of insurance and risk management. These perceptions will shape the region’s attractiveness.

    Safety concerns vary. In many parts of the world, higher levels of crime are an everyday worry for residents and businesses. For some, the GCC may still feel like the better option, provided the current tensions do not become the new normal.

    How this question is answered will play an important role in how the region’s economies perform in the period ahead. If confidence returns quickly and the risk is seen as contained and manageable, investment and hiring will likely rebound faster than many expect. If uncertainty persists or escalates, the road to recovery will be a long one.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16250747/main.gif
    Colin Foreman
  • Saudi forecast remains one of growth

    3 April 2026

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16250096/main.gif
    MEED Editorial
  • Dubai seeks consultants for Al-Khawaneej stormwater project

    3 April 2026

    Dubai Municipality has issued a consultancy tender to assess and upgrade the stormwater drainage system serving the Al-Khawaneej First residential district in northeastern Dubai.

    The project, listed as TF-22-E1, covers the upgrading and rehabilitation of the stormwater system in the area. The tender has been issued by the municipality’s Sewerage and Recycled Water Projects Department.

    The bid submission deadline is 23 April.

    The works form part of Dubai’s wider efforts to strengthen flood resilience and support sustainable urban infrastructure development.

    Two separate consultancy tenders were issued in March as part of a broader review of the emirate’s water and wastewater infrastructure to support future population growth.

    One involves a study to develop a sustainable urban drainage systems strategy across the emirate. The other covers a review of the emirate’s sewage treatment and recycled water distribution strategy. 

    The Al-Khawaneej First consultancy role will include data collection, site investigations and an assessment of existing drainage conditions.

    Additionally, the consultant will be required to identify flooding hotspots and evaluate the performance of the current system. 

    The project covers the preparation of preliminary and detailed designs, tender documents and construction packages as well as construction supervision through to project handover.

    The municipality added that integrated drainage solutions are to be developed as part of the package, including sustainable drainage systems (SuDS) and nature-based approaches to address current and future stormwater demand.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16249098/main.jpg
    Mark Dowdall
  • Developer plans two residential schemes in Saudi Arabia

    3 April 2026

    Saudi developer Alramz Real Estate is planning two new residential developments in Jeddah and Riyadh.

    In a Tadawul filing on 31 March, Alramz said it had signed an agreement with Oud Capital to establish a sharia-compliant real estate investment fund to develop the Alramz Front project in Jeddah’s Al-Firdous district.

    The fund is targeting approximately SR650m ($173m), with Alramz committing about SR81.6m. The company will also contribute land totalling around 47,800 square metres, valued at SR215m, as an in-kind contribution.

    The project is expected to deliver nearly 900 residential units. Alramz will serve as developer and exclusive marketer under a development contract valued at about SR269m.

    Separately, Alramz said it had acquired mixed-use plots in Riyadh’s Al-Malqa district for SR94.6m. The 8,600 sq m site will be developed into a residential scheme comprising approximately 135 apartments.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16249064/main.jpg
    Yasir Iqbal