Emirates, Oman: A plan to build a new rail network linking the UAE and Oman is a step closer thanks to a new $3 billion agreement.

Oman and Etihad Rail Co. and Abu Dhabi’s funding firm Mubadala have signed a deal to back the development of a 303 km railway network connecting the two countries.

The agreement will see the journey between Oman’s capital Sohar and the UAE city of Al Ain take just 47 minutes.

The new deal falls in line with the goals and objectives of both parties to further bolster ties and explore more investment opportunities in order to accelerate all procedures relating to the UAE-Oman Rail Network including planning as well as execution.

“The signing of the cooperation agreement between Oman and Etihad Rail company and Mubadala reflects the commitment of both parties to building strategic partnerships and strengthening cooperation with leading entities to promote investment, economic growth, and comprehensive development in both countries,” the Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Co. Suhail bin Mohammed Faraj Faris Al Mazrouei said, according to a statement.

The new partnership entails the creation of working groups as well as joint committees in an attempt to profit from the shared know-how expertise, and knowledge.

In addition to this, both parties will work to develop economic and financial feasibility studies.

Under the collaboration, the two companies will also ensure investments in the growth and expansion of the UAE-Oman railway network as well as cooperation to enhance and further elevate the project’s added value.

“The agreement will contribute to enhancing and developing the national economy in the UAE and the Sultanate by improving supply chain efficiency, opening new cross-border trade opportunities, and providing safe and sustainable means of transportation via rail for passengers and goods,” Al Mazrouei added.