Dubai: Etihad Rail said Tuesday it has suspended the tendering process for Stage Two of the project that would have connected Abu Dhabi’s Western Region with Abu Dhabi, Dubai and the Saudi Arabian and Omani borders.

The announcement comes a little over a week after the majority Abu Dhabi-owned company said it had cut its workforce by roughly 30 per cent. Etihad Rail is minority-owned by the United Arab Emirates Federal government.

The decision to suspend the tender process was made after Etihad Rail consulted with partners and stakeholders over its “strategic priorities” for 2016, Chairman Nasser Alsowaidi said in Tuesday’s statement.

Alsowaidi said Etihad Rail will now review “the most appropriate timing for this investment.”

The move to suspend the tendering process also comes as Abu Dhabi rebalances its economy to the slump in the oil price.

Etihad Rail said in October 2015 the recommendations on the tenders would “be presented to Etihad Rail’s Board before the end of 2015,” however, it is understood the tenders were still in the final stages before Tuesday’s announcement.

Stage Two of the project would have connected Abu Dhabi’s Western Region with the Saudi Arabian border at Ghweifat, the Omani border at Al Ain, Abu Dhabi’s Mussafah industrial area and Khalifa Port and also Dubai’s Jebel Ali Port.

On January 17, Etihad Rail told Bloomberg, “The rail links to Oman via Al Ain and to Saudi Arabia via Ghweifat remain within the scope of Stage Two, in line with the project mandate.” Etihad Rail said Tuesday it has informed all bidders of suspension in writing.

Etihad Rail is a Dh40 billion ($11 billion) national rail network that will provide passenger and freight rails services connecting all seven emirates of the UAE. It is part of a wider regional project to connect the six Arab Gulf states by rail by 2018, however, there was uncertainty this would be completed by then even before Tuesday’s announcement.