Deutsche Bahn will support the United Arab Emirates in setting up a new ultra-modern, high-capacity rail network, CEO Rüdiger Grube said.
The German transport service provider has signed a Memorandum of Understanding with UAE's Al Masaood Group.
Deutsche Bahn is expected to plan, construct and operate the rail system in the UAE.
The bidding process for the initial phase of the network will begin in the next two months, according to UAE's Union Railway Company (URC).
The 264km line of the network, from the Shah gas field to the port of Ruwais on the Gulf coast, is scheduled to open in 2013.
This line will become part of the 2,177km Gulf States Railway, connecting Kuwait and Muscat.
Other billion-dollar projects for regional transport, a metro, tram services and a long-distance line for linking Abu Dhabi with the southern emirates, are also planned for the region.