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Cooperation Agreement Signed to Develop UAE-Oman Rail Network

Mazrouei during the signing of the agreement between the two parties. (Asharq Al-Awsat)
Mazrouei during the signing of the agreement between the two parties. (Asharq Al-Awsat)
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Cooperation Agreement Signed to Develop UAE-Oman Rail Network

Mazrouei during the signing of the agreement between the two parties. (Asharq Al-Awsat)
Mazrouei during the signing of the agreement between the two parties. (Asharq Al-Awsat)

Oman and Etihad Rail Company signed an agreement with Mubadala Investment Company to support the development of the 303km railway network, which connects Oman and the United Arab Emirates.

The overall investment is valued at $3 billion.

The partnership aligns with the two parties’ efforts to explore investment opportunities in the railway sector and strengthen cooperation to support the Oman and Etihad Rail Company in accelerating the planning and execution process of the UAE-Oman Rail Network.

The cooperation agreement includes formation of working groups and joint committees to benefit from the shared expertise and knowledge, joint efforts in developing economic and financial feasibility studies, in addition to joint investments in the development of the UAE-Oman railway network, and cooperation to enhance the project’s added value.

Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, Suhail Al Mazrouei said: “The agreement will contribute to enhancing and developing the national economy in the UAE and the Sultanate by improving supply chain efficiency, opening new cross-border trade opportunities, and providing safe and sustainable means of transportation via rail for passengers and goods.”

Dr. Bakheet Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala’s UAE Investments platform, commented that the MoU “is designed to explore and unlock new opportunities in the infrastructure, transport, and logistics industries.”

“The strategic partnership with Oman and Etihad Rail Company is aimed at driving economic development and collaboration among both countries as well as creating value for all stakeholders,” he added.

CEO of Oman and Etihad Rail Company, Ahmed Al Musawa Al Hashemi said: “The agreement with Mubadala reaffirms the strategic position of the joint rail network project to achieve its objectives and ambitions.”

The signing of the agreement follows the establishment of the Oman and Etihad Rail Company, a joint venture established by Oman Rail and Etihad Rail.

The UAE-Oman Rail Network will increase market competitiveness and reduce the overall cost of supply chains.

Moreover, the network will provide trade and investment opportunities for the private sector and new and diverse job opportunities.

It will also enrich tourism activities, improve the competitiveness of the two countries in global trade, and establish their position as logistics hubs that serve as gateways to regional markets.

Passenger trains will run up to 200 km per hour, reducing the time of the journey between Sohar and Abu Dhabi to 100 minutes, and between Sohar and Al Ain to 47 minutes, while the freight train speed will reach 120 km per hour.

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Iraqi Central Bank Discusses Foreign Transfer Mechanisms with US Delegation

The Governor of the Central Bank of Iraq meets a US delegation in Baghdad. (Central Bank of Iraq)
The Governor of the Central Bank of Iraq meets a US delegation in Baghdad. (Central Bank of Iraq)
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Iraqi Central Bank Discusses Foreign Transfer Mechanisms with US Delegation

The Governor of the Central Bank of Iraq meets a US delegation in Baghdad. (Central Bank of Iraq)
The Governor of the Central Bank of Iraq meets a US delegation in Baghdad. (Central Bank of Iraq)

Governor of the Central Bank of Iraq Ali Mohsen Al-Alaq held talks with Steve Lutes, Vice President of Middle East Affairs at the US Chamber of Commerce and Chairman of the US-Iraq Business Council mechanisms for international trade and Iraq’s shift to fully utilizing correspondent banks for foreign transfers. 

Sunday's discussions in Baghdad follow the US blacklisting of 14 Iraqi banks - half of the country’s total banks - on suspicions of involvement in money laundering and transferring funds to Iran and Syria. The move has prevented these banks from conducting dollar transactions.

According to a statement by the Central Bank of Iraq on Sunday, the meeting, which was also attended by the Directors General of the Investments Department and the Banking Supervision Department, addressed “banking and economic relations” between Iraq and the US. They covered a visit by a Central Bank delegation to Washington in April, during which the delegation will meet with officials from the US Chamber of Commerce and American companies.

The two sides also touched on US companies’ interest in investing in Iraq’s energy, infrastructure, and advanced technology sectors, as well as opportunities arising from Iraq’s current security stability.

Al-Alaq emphasized the Central Bank’s role in supporting Iraq’s economic growth and pledged full support to global firms, including US companies and banks, looking to invest in the country. He stressed the importance of diversifying investment sectors to bolster economic development.

Since the beginning of 2023, the Central Bank of Iraq has implemented a monitoring system for dollar transactions through a specialized platform, which was designed to regulate financial transfers by Iraqi banks and provide proactive oversight, replacing the US Federal Reserve’s previous practice of auditing daily transfers. However, the Central Bank decided to discontinue the platform at the beginning of 2024.

The closure triggered significant withdrawals of deposits by individuals and companies, amid concerns that the banks holding their funds might face bankruptcy due to non-compliance with the Central Bank’s requirements and the US Treasury Department’s standards.

According to Central Bank data, the total volume of deposits in Iraq’s commercial banks fell to its lowest level in 22 months, dropping to 123 trillion Iraqi dinars in November 2024, compared to 127.5 trillion dinars in October.

Between June and November 2024, deposits decreased by 7 trillion dinars, reflecting a continued trend of declining savings in the banking sector over recent months.