Dubai has agreed a deal with US startup Hyperloop One to evaluate the construction of a near-supersonic transport link that could slash travel times to Emirati capital Abu Dhabi to minutes.

The cash-flush city state, which has recently hosted other hi-tech transport pilots, said it would conduct a "feasibility study" with Hyperloop One to sound out the scheme. 

The California-based firm hailed Tuesday's "historic" agreement. "We begin to evaluate the delivery of the world's first hyperloop system across the country," chief executive Rob Lloyd told reporters.