Dentons on landmark Hafeet Rail project
Dentons has advised on the project financing and development of the Hafeet Rail project. This initiative marks the GCC’s first cross-border rail project, including the future connection between Abu Dhabi and Sohar Port in Oman.
Dentons’ team
The Dentons team was led by partner Stephen Knight (pictured below), with support from partners Kanishka Singh , Sadaf Buchanan, Jamie Gibson, Yasser Taqi and Jon Nash, as well as counsel Martin Watt, senior associate Annabel Vincent and associates Elen Roberts, Shireen Al-Busaidi, Ben Suthers, Bayan Jafari-Eshaiker and Nisha Gupta.
The US$3 billion Hafeet Rail project, which is sponsored jointly by Etihad Rail and Oman Rail and supported by Mubadala Investment Company, has secured US$1.5 billion in project finance debt. This achievement reflects strong confidence from a diverse consortium of local, regional and international lenders, with significant support from Emirati and Omani banks – eight and nine institutions, respectively – highlighting the project’s strategic importance to both nations.
Spanning 238km, the railway network will include 60 bridges, some soaring up to 34 metres high, and tunnels extending up to 2.5km. It will connect five major ports and various industrial and freezones across the UAE and Oman. A single freight train journey on this network is expected to transport more than 15,000 tonnes of cargo, equivalent to approximately 270 standard containers. The sectors poised to benefit from this new capacity include mining, iron and steel, agriculture, retail, e-commerce and petrochemicals. Once operational, the railway will reduce travel time between Abu Dhabi and Sohar to just 100 minutes, with freight trains reaching speeds of 120km/h. Additionally, passenger trains will accommodate up to 400 travellers at speeds of 200km/h.
Dentons provided comprehensive advice on all aspects of the project financing.
This project is poised to transform regional transportation by enhancing the mobility of people and goods between the UAE and Oman. It aims to strengthen historical ties between the two nations while contributing to their sustainability goals.
