The first railway construction contract will be awarded by the UAE by the end of 2010.
The contract will be the first phase of the 1,500km GCC railway network to be built over the next seven years.
Part of the construction involves a 270km freight line linking Ruwais oil fields and Shah gas fields on the Arabian Gulf coast, khaleejtimes.com said
The network will run at speeds of up to 120km per hour for freight transport, and up to 200km per hour for passenger transport, UAE's Union Railway said.
The network will connect Middle Eastern countries such as Oman, Saudi Arabia and Jordan.
Union Railway CEO Richard Bowker said the total cost of the project is estimated at AED30–40bn ($8.1–$10.9bn).
The process of awarding the contract will start on 24 March with the work expected to take three years.