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Etihad Rail, the UAE's national rail network, on Tuesday said that the government has agreed financing for phase two of the project.
The UAE Ministry of Finance and the Abu Dhabi Department of Finance have signed an agreement to finance the second stage, the state-owned firm said in a statement.
The second phase will extend 605 kilometers from Ghuweifat on the border with Saudi Arabia to Fujairah on the east coast.
The preliminary designs for phase two have been completed and tenders for construction work will be launched by end of this month.
The new railway will increase the volume of goods transported to more than 50 million tons from seven million tonnes, the statement added.
Etihad Rail is owned 70 percent by the Abu Dhabi government and 30 percent by the UAE federal government.
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