UAE and Oman set up investment partnerships worth $35bn

The two countries plan to develop an industrial and energy mega project

FILE PHOTO: Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates and Sultan Haitham bin Tariq of Oman attend a state visit reception at Qasr Al Watan, Abu Dhabi, United Arab Emirates April 22, 2024. Ryan Carter / UAE Presidential Court / Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY / File PhotoShow less

The UAE and Oman have established investment partnerships worth Dh129 billion ($35.12 billion) across multiple sectors including renewable energy, railway, green metals and technology.

The collaboration was announced following the state visit of Oman's Sultan Haitham to the UAE this week.

The two countries will set up an industrial and energy mega project valued at Dh117 billion, with solar and wind projects, and green metal production units, the UAE’s Ministry of Investment said on Tuesday.

Abu Dhabi National Energy Company (Taqa), Masdar, Emirates Global Aluminium, Emirates Steel Arkan, Oman’s OQ Alternative Energy and Oman Electricity Transmission Company will be part of the new investment deal.

“The UAE and Oman have strong historical relations that are founded on shared values, goals and principles,” said Mohamed Alsuwaidi, Minister of Investment.

“The agreements represent a major milestone in our bilateral ties, as they pave the way for us to leverage our collective strength to realise our shared vision of advancement and prosperity.”

The two countries also decided to set up a technology-focused fund worth Dh660 million to invest in the digital economy in Oman and the wider Mena region. Abu Dhabi holding company ADQ and Oman’s sovereign wealth fund Oman Investment Authority will be part of the fund.

Rail connection

A UAE-Oman rail connectivity project, valued at Dh11 billion, and a shareholding partnership between Etihad Rail, Mubadala and Omani Asyad Group Company worth Dh3 billion, was also announced.

The two countries are building a rail network covering a distance of more than 300km to boost connectivity.

Trains that can reach speeds of 200kph will connect Abu Dhabi with Sohar to the north of Muscat, the Oman News Agency said in 2022. Freight trains will run at up to 120kph.

The deal includes connecting the UAE's existing freight services line to Sohar.

Passenger trains will run between Sohar and Abu Dhabi in 100 minutes, and between Sohar and Al Ain in 47 minutes.

Freight trains will have an annual capacity of 22.5 million tonnes of bulk cargo and 282,000 containers.

The announcement of the new projects comes as the UAE and Oman continue to boost investment ties, with non-oil trade between the two countries reaching about Dh51 billion in 2023.

Sheikh Mohammed bin Rashid Al Maktoum meets with Sultan Haitham of Oman. WAM

During Sultan Haitham's visit on Monday, the two countries pledged to further strengthen ties.

“The agreements signed today will serve to bolster relations across key sectors and foster socio-economic benefits, contributing towards a stable and prosperous future for both countries,” the Ministry of Investment said.