The contract covers the installation of ETCS Level 2 on the 264km line from the port of Ruwais to the Shah gas field, and was awarded by civil and track works contractor Saipem-Tecnimont-Dodsal, a joint venture of Italian and Indian companies, on behalf of Etihad Rail.
The Ruwais - Habshan section will be commissioned in 2013, while the remainder of the line to Shah will be completed at the end of 2014.
Meanwhile the UAE government has approved Etihad Rail's plan to borrow Dirhams 4.7bn ($US 1.28bn) to finance construction of the line.