Hyperloop One, the firm that wants to build a futuristic super-fast transport system, has announced that the first version may connect Dubai and Abu Dhabi.
In a video, it promised journey times of 12 minutes between the two cities.
The technology is still in testing phase so details of the deal were sketchy.
Initially, it will explore the feasibility of building a line linking the two cities.
Hyperloop was originally an idea from Tesla's boss and tech entrepreneur Elon Musk, who conceived the technical details of the transport system but left it to commercial firms to make the vision a reality.
The high-speed transportation system would use electric propulsion to accelerate a passenger or cargo pod through a low-pressure tube at speeds of up to 700mph. The vehicle would levitate above the track, which is likely to be built on stilts above the ground.
There are currently two main firms attempting to make it a reality - Hyperloop Transportation Technologies (HTT) and Hyperloop One.
Hyperloop One, which hosted its Dubai announcement at the top of the world's tallest building - the Burj Khalifa - has signed a feasibility deal with the emirate's roads and transportation agency.
It will explore the possibility of using the technology at Dubai's Jebel Ali port.