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I think you're underestimating the sheer scale of the endeavor. It would need to cross several deserts, a mountain range and an international border. As drawn in the image there's almost 800km, let's say, between Abu dabi and Al Ashkara. Being very generous with the geography, a costly project like this could run for $10 MM per Km or about $8 Bn just for the construction (probably more as it would not be a straight line), plus maintenance (in this place it could be up to 30% of the construction cost a year), plus rolling stock and operation costs. Feeding and getting water to those workers would be a logistics nightmare in the middle of the desert. Another couple of billions for unloading and loading facilities that could handle millions of barrels daily, to be built from scratch.

That's before even reaching the question of timeframes. Rail can be built really fast, but fast is roughly one kilometer of rail a month. Assuming all permits, contracts and administrative load can be fast tracked (it can take years to design and approve a project of this scale), it would take 66 work years (surely distributed between several work crews) to complete a new heavy railway. Which balloons the cost by a 50% factor for each new crew to accelerate construction.

For reference, the Australian, Adelaide to Darwin rail line is 4 times longer than this. Its construction started in 1910 and was finished in 2004. So, Oman-UAE should have this rail in place and operating no sooner than 2045 if they rush very hard.

By the time the new rail is laid out, Israel would've completed their genocide of Iran.