Galfar shares surge 20% on Oman-UAE Rail contract

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Muscat – Shares of Galfar Engineering & Contracting Company have surged by 20% over the past two trading sessions, following the company’s success in winning a RO521mn contract for the Oman-UAE Rail project in a consortium with UAE’s Trojan Construction Group.

Galfar shares recorded a 9.87% increase on Wednesday at the Muscat Stock Exchange, extending sharp gains for the second consecutive day after a 9.35% jump on Tuesday.

‘We are pleased to inform our esteemed shareholders that Oman-Etihad Rail Company (Hafeet Rail) has awarded the joint venture of Galfar and partners the design and build contract of the Abu-Dhabi-Sohar railway link project at a total estimated value of RO521mn,’ Galfar said in a disclosure to the Muscat Stock Exchange on Wednesday.

The Oman-Etihad Rail Company, a joint venture between Oman Rail and Etihad Rail, will operate the railway network connecting Sohar Port to the UAE National Rail Network, with a total project investment of $3bn. The Oman-Etihad Rail Company on Tuesday unveiled ‘Hafeet Rail’ as the new identity of the Oman-UAE Rail Network.

Three significant agreements related to the joint rail project were signed in Abu Dhabi on Tuesday. The first is a partnership agreement between stakeholders such as Etihad Rail, Oman Rail, and Mubadala Investment, signaling the project’s commencement.

The second agreement involves awarding civil contracts for the joint network to an Omani-Emirati alliance led by Trojan Construction Group and Galfar Engineering and Contracting. Lastly, the third agreement pertains to the systems and integration contracts for the railway network, awarded to a partnership between Siemens and HAC.

In its disclosure to the Muscat Stock Exchange, Galfar Engineering & Contracting Company expressed its gratitude towards Hafeet Rail for the trust placed in the joint venture consortium.

Galfar noted that securing this major project would significantly enhance its order book and strategically position the company to diversify into railway infrastructure projects.

In a statement to the Emirates News Agency on Tuesday, Mohammed bin Zahran al Mahruqi, Deputy CEO of Hafeet Rail, said, “Construction works were the focus of the second agreement signed on Tuesday, assigning the works to a national alliance led by Trojan Construction Group and Galfar Engineering & Contracting. The tender allocation reflects a clear vision aimed at empowering and developing national cadres and contractors, enhancing local value-added, and involving the private sector in this vital project.”