Passenger trains, which can travel at top speeds of 200 kmph, will soon connect Abu Dhabi with Sohar to the north of Muscat.
It comes after the two countries signed a landmark cooperation deal to build a $3 billion railway connecting Sohar Port to the UAE National Rail Network.
The agreement was signed by Shadi Malak, CEO of Etihad Rail, and Abdulrahman Salim Al Hatmi, Group CEO of ASYAD.
The joint network cements the strategic and historic relationship between Oman and the UAE, and aims to boost the growth of the national economy in both countries.
It will also improve the efficiency of supply chain, facilitate cross-border trade by linking commercial ports to the railway network, boost market competitiveness and reduce the total cost of supply chains.
The new transport system will also create job opportunities across sectors, develop the national human capital of both countries and kick off a new age of innovation.
On a wider scope, the project will stimulate tourism activities between Oman and the UAE, strengthen the competitiveness of the two countries in global trade and solidify their positions as logistics hubs for import and export to regional markets.
Oman Rail and Etihad Rail will also establish a joint company - Oman-Etihad Rail - to introduce and operate the railway network.
The 303-km railway will reduce travel time from Sohar to Abu Dhabi to 1 hour 40 minutes, and from Sohar to Al Ain to 47 minutes.
Meanwhile, the freight trains will run up to 120 km/h.
Underlining the impact of this landmark agreement, Eng. Abdulrahman Salim Al Hatmi, Group CEO of Asyad, explained: “adding a new railway capability to our logistics sector will offer trade and logistics companies outstanding investment opportunities and empower manufacturing and industrial activities to quickly expand beyond borders."
Eng. Shadi Malak, CEO of Etihad Rail, said: “The agreement outlines a strategic roadmap for a sustainable project which will contribute to bolstering the solid relations between the UAE and Oman, and will play an instrumental role in facilitating national and regional trade by connecting the UAE National Rail Network with Sohar Port.”