Abu Dhabi, UAE – Oman and Etihad Rail Company (OER), 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 the Sultanate of Oman to the UAE.

Under this agreement, OER 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.

The MoU was signed by Eng. Ahmed Al Musawa Al Hashemi, CEO of OER, and Eng. Saeed Khalfan Al Ghafri, CEO of Emirates Steel, an Emirates Steel Arkan company.

Commenting on the MoU, Eng. Ahmed Al Musawa Al Hashemi said: “We are proud to work with leading construction materials manufacturers such as Emirates Steel Arkan, further strengthening our strategic partnerships. This agreement represents the vision for this project, which was launched to link the Sultanate of 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.”

Engineer Saeed Khalfan Al Ghafri remarked, “Our collaboration with OER enhances our supply chain capabilities by leveraging the railway network that connects both countries. This agreement paves the way for integrated logistics solutions for the transportation of raw materials to and from our cement plant in Al Ain, boosting our operational efficiency and cost-effectiveness, and reducing environmental impact. Furthermore, this enhances our transport infrastructure and reinforces cross-border supply chains.”

Oman and Etihad Rail will provide logistics solutions for Emirates Steel Arkan through annual transportation of 4 to 6 million tonnes of high-quality raw materials to Al Ain. This ensures Emirates Steel Arkan can produce and export 2-3 million tonnes of finished goods to regional markets each year.

The collaboration between OER 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.

The agreement showcases the significance of the rail network as a crucial link in the transport and logistics chain spanning the region, which will attract businesses in both countries and international companies in the region and build long-term commercial partnerships to achieve sustainable economic growth. 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.

About Oman and Etihad Rail Company:

Oman and Etihad Rail Company was established in September 2022, as a joint venture, equally owned by Etihad Rail, the developer and operator of the UAE National Railway Network, and Oman Rail, Sultanate’s national developer and operator of railway network, with the goal of designing, building, and operating a railway network that links Sohar Port to the UAE National Rail Network, with a total project investment of 3 billion dollars.

The company will lay the groundwork and workplan for the execution of the project, including its financial mechanisms and schedule, and thus overseeing the design, implementation, and operation of the railway network, which connects Sohar and Abu Dhabi, in line with the standards of the two countries.

For more information, please contact:
Etihad Rail Communications Department
Email: media@etihadrail.ae
Website: www.etihadrail.ae  
Mustapha Al Tayech
Email: mustapha.altayech@hkstrategies.com

    

About Emirates Steel Arkan (ESA)

Emirates Steel Arkan (the Group) is a public joint stock company (ADX: EMSTEEL) and the UAE’s largest steel and building materials manufacturer. The Group leverages cutting-edge technologies to supply both the local market and more than 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.

Emirates Steel Arkan is committed to contributing to the UAE's industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is also among the leading decarbonized steel manufacturers in the world and is recognized for its world-class safety performance.

The Group’s steel and building materials have been used in some of the UAE’s most iconic construction projects, including the Burj Khalifa, Emirates Palace, Etihad Towers, Yas Island, and more.

Emirates Steel Arkan is majority owned by ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.

For more information, please visit our website: www.emiratessteelarkan.com  

For Media enquiries, please contact:
Mohammad Daggamseh
Manager of Media and Communications
Email: mohammad.daggamseh@emiratessteel.com