In a significant development for regional cooperation, the Gulf Cooperation council have successfully established a new rail connection, strengthening economic ties and facilitating trade among member nations. As a result, Oman, a key player in the initiative, has witnessed a surge in its steel rail production to meet the growing demand.The successful collaboration marks a milestone in the journey towards a more interconnected and prosperous future for the participating nations.
The newly established rail network aims to enhance connectivity and promote cross-border trade, further solidifying the partnership among the participating Gulf nations.
In a significant move to meet the rising demand for steel rails and other steel products in the region, Al-Jazeera, Oman's largest steel company, has partnered with the KAZD group, the operator of Khalifa Economic Zones in Abu Dhabi. Together, they have opened the first rolling mill in Abu Dhabi, covering an extensive area of 210 thousand square meter. The project, which required an investment of 250 million dirhams (approximately 68 million dollars), aims to produce rails and other steel products to support the growing rail network connecting the member countries of the Persian Gulf Cooperation Council. This strategic collaboration is set to strengthen the steel manufacturing sector in the Gulf region and foster economic growth and integration among the participating nations.
Oman is increasing rail production in response to growing regional demand, while Esfahan Steel Company in Iran, aims to produce rails globally. This may lead to competition in attracting international markets for rail products.