Hafeet Rail, a joint venture between Etihad Rail, Oman Rail, and Mubadala Investment Company, will begin trial operations in the final quarter of 2027. As a result, the $3 billion railway system is progressing at a healthy pace in both Oman and the UAE. Said Al Maawali, the transport minister of Oman, confirmed that the construction of the Hafeet Rail project has reached 40 percent as of April 2026. In the meantime, the 238-kilometer line is likely to link the Sohar Port free zone in the UAE’s neighbour country, Oman, with the UAE rail network.
Work is underway at several sites in Oman such as Sohar, Buraimi and Wadi Al Jizzi, and in the UAE at Al Ain. In particular, the Hafeet Rail project features two 2.5 km-long tunnels and 36 bridges over urban, industrial, mountainous and deep valley terrain. Hence, it is still in the process of large-scale excavation on the long route, which has extensive engineering requirements. Another major transport project making headway in the Middle East is the King Salman International Airport.
Major international contractors are bidding for the Saudi Royal Aviation Village, a $2.5 billion specialized aviation complex that is part of the masterplan for King Salman International Airport in Riyadh. The project is therefore a key infrastructure element for the airport’s operational scope and aviation capabilities.
Hafeet Rail Addresses Cross-Border Connectivity and Supply Chain Resilience
The Hafeet Rail project aims to connect Oman and UAE and transport goods and people. Moreover, the project takes into account the geopolitical dynamics that have emerged since Iran blocked the Strait of Hormuz, affecting the energy and commodity supply of the world. Alternative trade routes have made cross-border land connectivity a strategic consideration across the entire Gulf Cooperation Council (GCC) region. The trade volume in the first half of 2026 at the overland trade and travel gate at Hatta Customs Crossing between UAE and Oman (HCC) has increased significantly since the closure of the strait, according to Dubai Media Office. Moreover, Hafeet Rail is part of the infrastructure development of the emerging overland trade.
Hafeet Rail Construction Advances Toward 2027 Trial Operations
The Hafeet Rail project is located in a difficult terrain that demands precision engineering and construction management. In particular, techniques are challenging in highly mountainous regions where tunnels and bridges have to be built and when excavations are needed. Furthermore, there are coordination needs with the existing infrastructure and communities in urban and industrial areas. The $3 billion Hafeet Rail project is a transformative investment in the region’s connectivity, aimed at providing a reliable and convenient rail corridor to facilitate both passenger and freight movement between Oman and the UAE.
Project Overview
- Project Name: Hafeet Rail
- Project Value: $3 Billion
- Location: Sohar, Buraimi, Wadi Al Jizzi (Oman) to Al Ain (UAE)
- Joint Venture: Etihad Rail, Oman Rail, Mubadala Investment Company
- Status: 40% complete as of April 2026, trial run Q4 2027
Scope
- 238-kilometer railway network
- Two 2.5-kilometer tunnels
- 36 bridges
- Freight and passenger service
- Sohar Port free zone connection to UAE rail network
- Urban, industrial, mountainous terrain crossing
Project Highlights
- Cross-border Oman-UAE connectivity
- Freight and passenger dual operations
- Strategic overland trade route alternative
- Complex terrain engineering requirements
- 40% construction completion reported
Key Developments
- Joint venture established 2022
- Rebranded as Hafeet Rail
- Trial run targeted Q4 2027
- 40% progress reported April 2026
- Multi-site construction active across region
Key Challenges
- Complex mountainous and valley terrain
- Strait of Hormuz closure impacts supply chain
- Large-scale excavation coordination
- Cross-border infrastructure integration
- Urban and industrial area routing complications
Outlook
- Trial operations commence Q4 2027
- Freight and passenger services launch post-trial
- Regional supply chain resilience enhancement
- Overland trade route establishment
- GCC cross-border connectivity expansion
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