The UAE's Etihad Rail project is moving full steam ahead.
The UAE's Etihad Rail project is moving full steam ahead.
The UAE's Etihad Rail project is moving full steam ahead.
The UAE's Etihad Rail project is moving full steam ahead.


Etihad Rail will change the way UAE passengers travel forever


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December 07, 2021

A huge draw for Egypt's tourism industry is the train that runs the length of the country, parallel to the Nile river. From the comfort of private cabins, passengers cross a vast country in a matter of hours, all while viewing the landscapes and sites that make the country the marvel that it is. Egypt’s railways are historic. The first lines were laid in the mid-19th century, making it the first railway in the Middle East.

Many years later, people in the UAE are set to get a dose of this romanticism, after Sunday's news that Etihad Rail, which was originally announced as a freight project, will also include a passenger service that runs across the country. Officials did not announce a start date for the first services, but said that the number of passengers is expected to reach 36.5 million a year by 2030.

These are high projections, but understandable considering the vast convenience and benefit it will bring. With trains set to travel at around 200 kilometres per hour, the journey from Abu Dhabi to Dubai will take just 50 minutes.

  • Sheikh Hamad bin Mohammed Al Sharqi, the Ruler of Fujairah, accepts a gift from Sheikh Theyab bin Mohamed bin Zayed, chairman of the Department of Transport and Abu Dhabi Executive Council Member, during a ceremony to celebrate the completion of tunnel excavations for the national rail network. Also present are Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah, Sheikh Maktoum bin Hamad Al Sharqi and Shadi Malik, chief executive of Etihad Rail, left.
    Sheikh Hamad bin Mohammed Al Sharqi, the Ruler of Fujairah, accepts a gift from Sheikh Theyab bin Mohamed bin Zayed, chairman of the Department of Transport and Abu Dhabi Executive Council Member, during a ceremony to celebrate the completion of tunnel excavations for the national rail network. Also present are Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah, Sheikh Maktoum bin Hamad Al Sharqi and Shadi Malik, chief executive of Etihad Rail, left.
  • Dignitaries are driven through the new tunnel.
    Dignitaries are driven through the new tunnel.
  • Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed, in front vehicle, emerge from the newly built tunnel.
    Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed, in front vehicle, emerge from the newly built tunnel.
  • Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah, Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah, Sheikh Theyab bin Mohamed bin Zayed, chairman of the Department of Transport and Abu Dhabi Executive Council Member, Sheikh Maktoum bin Hamad Al Sharqi and other dignitaries at the tunnel ceremony
    Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah, Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah, Sheikh Theyab bin Mohamed bin Zayed, chairman of the Department of Transport and Abu Dhabi Executive Council Member, Sheikh Maktoum bin Hamad Al Sharqi and other dignitaries at the tunnel ceremony
  • Sheikh Hamad bin Mohammed, right, and Sheikh Theyab bin Mohamed, left, celebrate the completion of a 6.9km tunnel excavation.
    Sheikh Hamad bin Mohammed, right, and Sheikh Theyab bin Mohamed, left, celebrate the completion of a 6.9km tunnel excavation.
  • Shadi Malik, chief executive of Etihad Rail, delivers a speech during the ceremony.
    Shadi Malik, chief executive of Etihad Rail, delivers a speech during the ceremony.
  • The tunnels took 600 people a million working hours to complete, but were finished two months ahead of schedule.
    The tunnels took 600 people a million working hours to complete, but were finished two months ahead of schedule.
  • Executives attend a ceremony in Sakamkam, Fujairah, on November 17, 2021, to celebrate the completion of tunnel excavations for stage two of the national rail network. All photos: Ministry of Presidential Affairs
    Executives attend a ceremony in Sakamkam, Fujairah, on November 17, 2021, to celebrate the completion of tunnel excavations for stage two of the national rail network. All photos: Ministry of Presidential Affairs
  • Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed, right, at the ceremony.
    Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed, right, at the ceremony.
  • Guests at the ceremony, including Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah, Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah and Sheikh Theyab bin Mohamed bin Zayed, chairman of the Department of Transport, outside one of the completed tunnels.
    Guests at the ceremony, including Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah, Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah and Sheikh Theyab bin Mohamed bin Zayed, chairman of the Department of Transport, outside one of the completed tunnels.
  • Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed together pull a lever to reveal the completed tunnel.
    Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed together pull a lever to reveal the completed tunnel.
  • Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed at the ceremony.
    Sheikh Hamad bin Mohammed and Sheikh Theyab bin Mohamed at the ceremony.

For the country as a whole, creating passenger lines will also support a number of long-term goals. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, spoke of the huge reduction in carbon emissions that the railway would bring about. And as the UAE seeks to create green but also profitable initiatives, Etihad Rail makes particular sense. Completed in 2016, the first phase of the railway is already moving industrial products between the country's ports. The wider value of the railway is worth an estimated $54.5 billion.

Much of this will come from tourism, domestic and international. The past year and a half has seen the rise of staycations, and with quick rail links, this type of holidaying is about to become cheaper, faster and greener. It will also link travellers to rail networks in five neighbouring GCC states, a boon for regional tourism. International travellers will profit similarly, bypassing the need to rent cars and navigate a new country on their own.

Behind big numbers, Etihad Rail's deepest significance is that it will change transport in a country that has always been on the move. Construction on the UAE's first paved roads started in 1966. At the time, most journeys would have been done by off-road vehicles at best, and a camel trip from Abu Dhabi to Fujairah would have taken days. On Etihad Rail, it will take an hour and 40 minutes.

Sheikh Mohammed has called the new railway "the largest project to consolidate the strength of the union for the next 50 years". The UAE has emerged strongly from the pandemic, but for the first time in its history it had to put up with unprecedented barriers to internal travel. It is fitting, therefore, that as the country emerges from Covid-19, connection is not just getting back to normal, but reaching new levels.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
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Updated: December 07, 2021, 10:34 AM