Etihad Rail's much-anticipated passenger train service is set to launch next year, marking a significant step forward for the country's landmark infrastructure project.
In a post on X, Etihad Rail said the UAE-wide line will start operations in 2026. This was confirmed on Thursday by a media relations group working for Etihad Rail.
It is the news people across the country have been waiting for since plans for the passenger line were unveiled in 2021.
The development was first revealed in message on X on May 9 that detailed a meeting between Sheikh Hamdan bin Zayed, Ruler's Representative in Al Dhafra Region, and a delegation from Etihad Rail. Progress made on construction and future plans were discussed at the meeting.
"During the meeting, we briefed His Highness on the latest developments of the UAE National Railway Network and the passenger train service, which is set to launch in 2026," the post read.
It was later confirmed by an Etihad Rail media relations agency that the 2026 date is correct.
Etihad Rail in January said the first four passenger stations on the UAE-wide line would be in Abu Dhabi, Dubai, Sharjah and Fujairah. The stations in Sharjah and Fujairah had been announced previously.
The station in Fujairah is in the Sakamkam area and the one in Sharjah close to the airport and University City.
While the precise Dubai and Abu Dhabi sites have yet to be revealed, it is believed the Dubai station will be near Jumeirah Golf Estates.
Wasl, one of Dubai’s largest real estate developers, on Wednesday announced the next phase of the Jumeirah Golf Estates development and said the station was being built within it. All planned stations are expected to integrate with existing public transport.
It was previously announced that passenger trains are set to travel at 200kph carrying up to 400 passengers. Travelling from Abu Dhabi to Dubai will take about 57 minutes, while a journey from the capital to Fujairah will take 105 minutes.
Separately, Etihad Rail in January announced plans for an electrified high-speed passenger service between Abu Dhabi and Dubai with its own set of stations.
Construction has yet to start and a date for the launch of services has yet to be revealed. It is also yet to be disclosed how or where the high-speed track might integrate with the regular Etihad Rail line.
What is Etihad Rail and where does it go?
Work on Etihad Rail began in 2009. Since 2016, two tracks spanning 264km have been in operation – with trains transporting granulated sulphur from gas fields in Shah and Habshan to an export point in Ruwais.
Every day, two trains run across the country, capable of carrying up to 22,000 tonnes of sulphur. Each can pull up to 110 wagons.
When complete, the network will connect the seven emirates to the five neighbouring GCC states.
The line will ultimately link the UAE and Saudi Arabia from Fujairah Port to Ghuwaifat, through Khalifa Port and Jebel Ali Port.
A railway connecting the UAE with Oman is also planned.
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Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
