The UAE cabinet has approved plans by Etihad Rail, the company behind a national railway project, to borrow AED4.7bn ($1.28bn) to finance phase one of the project.

Sheikh Mohammed bin Rashid al-Maktoum, UAE prime minister, said on his official Twitter feed that the UAE cabinet had approved plans for Etihad Rail to borrow the money to finance the construction of the line between Habshan and Ruwais.

Phase one of the project is being used by Abu Dhabi National Oil Company (Adnoc) to transport sulphur. Etihad Rail has already begun seeking a financial adviser to help it raise the money (MEED 12:1:12).