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Oman: In a significant step to boost cross-border trade and stimulate economic growth, Oman and Etihad Rail Company (OER) have joined forces with Emirates Steel Arkan, the UAE’s largest steel and building materials manufacturer. This strategic partnership is set to revolutionize the transportation and logistics landscape in the region.

Under the terms of the recently inked MoU, OER will spearhead the logistical operations to facilitate the import of raw limestone from Oman to Emirates Steel Arkan’s cement factories in Al Ain, UAE, utilizing the latest OER-operated railway network.

MoU Signing & Terms

The MoU signing ceremony, presided over by Eng. Ahmed Al Musawa Al Hashemi, CEO of OER, and Eng. Said Khalfan Al Ghafri, CEO of Emirates Steel, signifies a significant step forward in realizing the broader vision of connecting the Sultanate of Oman and the United Arab Emirates.

Eng. Ahmed Al Musawa Al Hashemi expressed his pride and optimism regarding this collaboration. He emphasized, “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 centres of manufacturing and production, and connecting import/export points.”

Eng. Said Khalfan Al Ghafri also highlighted the value of this partnership, “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.”

Beyond the immediate business benefits, this partnership will stimulate investments in Omani quarries, driving the mining industry’s revenues and aligning perfectly with Oman Vision 2040’s goals of fostering a diversified, competitive, and sustainable economy. Importantly, it not only marks a significant collaboration between industry leaders but also underscores the pivotal role of the rail network as a game-changer in regional transportation and logistics. It aims to draw in domestic and global businesses while supporting the 2050 net neutrality goal by reducing reliance on traditional transportation like cars and trucks.