Tesla's vision to create a hyperloop to outer space may have a predecessor that will connect two cities. Dubbed as Hyperloop One, the project aims to develop a line that will connect Dubai and the capital city of United Arab Emirates, Abu Dhabi.

The financial terms of the deal were not disclosed. However, there are rumors that the project will have several stations in-between the hyperloop line that connects Dubai to Abu Dhabi. Prototypes of the hyperloop system show that pods will carry passengers and cargo across the two points. According to The Economist, the hyperloop system has a speed of up to 745mph.

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DP World, a government-backed port operator from Dubai, is reported to have finalized the deal with Hyperloop One. The plan is to use the technology at the industrial Jebel Ali port. Last month, the city of Dubai opened a competition inviting participants to present plans for a hyperloop system that will connect different airports.

Tech company SpaceX is the pioneer of the hyperloop concept. The company, with its Hyperloop One project, is working on a test track in the Nevada desert. SpaceX chief executive officer Elon Musk plans to use the hyperloop technology to construct a high-speed travel system in California.

Tirias Research analyst Jim McGregor believes that constructing a hyperloop system in the UAE is a good choice since the state has the capital to fund the project.

"Doing this in the United States would be a political disaster because the final cost is likely to be exponentially higher than the original optimistic estimates," McGregor told Tech News World.

Based on some investment documents, Hyperloop One is planning to raise up to $250 million in its next funding round which is expected to commence early next year. During last month's funding run, the tech firm was able to raise more than $50 million in funding.