Abu Dhabi, UAE — Oman and Etihad Rail Company (OERC), the developer and operator of the UAE-Oman Rail Network, signed a Memorandum of Understanding (MoU) with Emirates Steel Arkan, the UAE’s largest steel and building materials manufacturer, to facilitate the export of raw materials from Oman to the UAE.
Under this agreement, OERC will provide logistics solutions to manage the transportation of raw limestone, which Emirates Steel Arkan plans to import from Oman to its cement factories in Al Ain, UAE.
Oman and Etihad Rail will provide logistics solutions for Emirates Steel Arkan through annual transportation of 4 to 6 million tons of high-quality raw materials to Al Ain. This ensures Emirates Steel Arkan can produce and export 2-3 million tons of finished goods to regional markets each year.
The collaboration between OERC and Emirates Steel Arkan creates several benefits, most importantly driving the revenues of the mining industry and increasing investments in Omani quarries.
By connecting ports and manufacturing hubs, the railway network will provide quarrying companies in Oman with direct shipping solutions to export their products to regional markets. This contributes to achieving the Oman Vision 2040, which aims for a diversified, competitive, and sustainable economy that features unified, modern frameworks.
As the joint railway network will reduce dependence on cars and trucks, it will also drive transformation towards a low-carbon future, supporting both countries’ objectives to achieve net neutrality by 2050.
The MoU was signed by Ahmed Al Musawa Al Hashemi, CEO of OERC, and Saeed Khalfan Al Ghafri, CEO of Emirates Steel, an Emirates Steel Arkan company.
Commenting on the MoU, Al Hashemi said, “This agreement represents the vision for this project, which was launched to link Oman and the United Arab Emirates and aims to enhance cross-border trade between the two countries, linking centers of manufacturing and production, and connecting import/export points. As a result, this will create promising and sustainable business opportunities for the mining industry and construction materials production sector in Oman and the UAE.”