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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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Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows 

Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
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Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows 

Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)

Real estate experts have welcomed Saudi Arabia’s decision to allow foreign investment in real estate companies in the Makkah and Madinah regions. They said it will attract more foreign capital, speed up major projects, and support development in these cities.

The Saudi Capital Market Authority (CMA) said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy.

“This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,” the statement added.

The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis.

The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both.

However, people without Saudi nationality would not be allowed to own more than 49% of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies.

The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation.

At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah.

This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis.

Real estate expert Ahmed Al-Faqih told Asharq Al-Awsat that the decision will benefit the overall Saudi real estate market, especially in Makkah and Madinah. It will attract more foreign investment, supporting Saudi Vision 2030's goals of boosting investments and reducing reliance on oil.

Al-Faqih expects the market to react positively, with more investors coming in. The decision’s impact will go beyond buying and selling properties to include changes in regulations and market innovations.

“We’ll see more capital flowing into the market, and development projects will transform the two cities into major construction hubs in the next five years, especially with their ongoing religious tourism during Hajj and Umrah,” said Al-Faqih.

He added that the decision targets Muslims worldwide who want to invest in the holy cities, as well as other investors.

“This long-awaited move is a sign that Saudi Arabia is close to allowing foreign investment in its real estate sector,” he noted.