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. This project aims to enhance connectivity between the UAE and Oman, spanning 238 km, and connecting major ports and industrial zones. It is financed on a limited recourse project finance basis, serving as a model for future rail projects due to its cross-border complexities and regulatory framework.

The project secured $1.5 billion in project finance debt from a consortium of 17 banks, reflecting 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 goals by reducing carbon emissions. The project also aims to stimulate various industrial sectors and attract national and foreign investment. 

The article is co-authored by Banking and Finance partner Stephen Knight based in Dentons' Abu Dhabi office.

The article was first published in the Project Finance International (PFI) Yearbook 2025 and was also recognised by PFI as Middle East & Africa Transport Deal of the Year.

Download the full article here.