Dubai—Dentons advised on the Hafeet Rail project, that was named Middle East & Africa Transport Deal of the Year at the Project Finance International Awards, which took place in London on 20 February.

The Hafeet Rail project is a landmark initiative, marking the GCC's first cross-border rail network, developed by Etihad Rail, Oman Rail and Mubadala Investment. Spanning 238km, the network connects major ports and industrial zones between the UAE and Oman. Financed on a limited recourse project finance basis, it serves as a model for future cross-border rail projects due to its regulatory complexity.

The project secured US$1.5 billion in debt financing from a consortium of 17 banks, highlighting its strategic importance and alignment with sustainability goals. It includes both conventional and Islamic financing facilities. The rail network is expected to boost economic growth, reduce travel time and support sustainability by cutting carbon emissions. Additionally, it aims to stimulate industrial sectors and attract both domestic and foreign investment.

Dentons provided comprehensive advice on all aspects of the project financing, as well as guidance on the concession agreement for procuring construction and services for the UAE section. The Firm also assisted with a track access agreement, enabling UAE companies to use existing sections of the rail network.

Banking and Finance partner Stephen Knight, based in Dentons' Abu Dhabi office, commented: "We were thrilled to have supported the first-class Sponsors, Etihad Rail and Oman Rail, supported by Mubadala Investment Company, on the landmark Hafeet Rail project, the first cross-border rail initiative in the Middle East. We're equally proud to see the deal recognised at the PFI Awards. This transaction marks a significant milestone in the development of the rail sector across the UAE, Oman and the broader Middle East. It also highlights Dentons' ability to deploy multi-disciplinary teams across offices to seamlessly execute large-scale projects and adds to our strong record of firsts in the region. We'd like to take this opportunity to once again thank the Sponsors for trusting us with this important project."

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