Related: UAE rail link from Fujairah to Saudi border on track for completion
The UAE’s Etihad Rail project is a crucial step in a long-term plan to create a regional network, a leading consultant involved with the transport project said.
Etihad Rail aims to link the country’s centres of trade, industry and population, and will provide passenger and freight services.
When complete, it will stretch about 1,200 kilometres across the UAE, with plans for it to eventually connect to other Gulf nations.
Freight will be the central focus once stage two of Etihad Rail is complete, connecting the Emirates with Saudi Arabia at the border in Ghuweifat.
As people around the world become more environmentally conscious including here in the GCC, you will see a stronger demand on lower emissions transport
Mama Sougoufara,
Alstom Middle East
Passenger travel will also expand across the country and eventually further into the region to create international rail connections similar to those in Europe.
Youssef Khalifeh, Middle East regional director for Deutsche Bahn engineering and consulting, said a GCC connected by passenger rail is an ambition unlikely to be realised for up to a decade.
“There needs to be a determination in the GCC to activate what they have already decided to do with a railway network that starts in Kuwait, travels through Saudi Arabia and stops at all other countries on the way to the UAE,” he said.
“The only sections to have been done so far are Saudi Arabia, to an extent, and the UAE, which is in stage two.
“Oman and Kuwait has nothing complete, there is no connection with Qatar yet and Bahrain is still talking about it.
“Big discussions are under way between Qatar and Saudi Arabia to connect it to the GCC rail network, and it is being activated as we speak.
“This project still needs another five to 10 years.”
Regional rail development has stalled owing to plunging oil prices, shrinking revenue and budgets reallocated to support national economies during the pandemic.
The biggest challenge facing a regional railway is largely cultural, said Mr Khalifeh, whose Deutsche Bahn consultancy has been heavily involved with maintenance and operation of stage one of Etihad Rail.
In a land where the car is king and fuel cheap, it could take years to encourage more people on to public transport.
A new train of thought
The passenger experience is critical to that transition, with stations becoming welcoming urban hubs at which travellers can dine, shop and work.
“For any expatriate living in this region, they are used to rail networks like we see in Europe or India,” said Mr Khalifeh, who was speaking on the sidelines of the Middle East Rail conference in Dubai.
“But for locals, culturally it is different. Why would they want to get into a train when they have a car with cheap fuel?
“There is a lack of a good train experience but that will slowly change. We have seen that in Dubai [with the Metro].
“Discussions with transport authorities are happening all the time. It is about finding the time and finance to do it elsewhere.
“In Europe and the US, stations are marvels of architecture and they have lots of attractions inside, from shopping and dining or as a workspace, so it becomes an enjoyable experience to wait for a train.”
Going full speed ahead
High-speed rail is likely to be the dominant form of mass-passenger transport in the years to come, despite the emergence of new technology such as the Hyperloop and suspended skypods transported along steel cables.
Deutsche Bahn has completed feasibility studies on first and last-mile transport options to reach stations at which trains can be boarded.
They include options for urban air mobility to catch a drone taxi or autonomous shuttle, and have been studied in Switzerland, Italy, France, Germany and the US.
The company aims to operate a 1,300km high-speed rail link between Los Angeles and San Francisco, with trains travelling at 350kph, to slash travel times from eight hours to three.
The $80 billion project is due for completion by 2029.
“This would be the first truly high-speed train in the country,” Mr Khalifeh said.
“For the next decade, DB will focus on the tried and tested form of travel, which is steel wheels on steel tracks for regional trains.
“We will also innovate with stations of the future.
“Digitalisation will see video conferencing ticket booths, which is already happening in Germany, to make reservations or buy tickets 24 hours a day.
“It must be a comfortable setting for the traveller.
“There are targets to reduce carbon footprints and the way to do that is to improve public transport, reduce the use of cars and increase renewable energy.
“The rail sector needs to invest in itself, but governments in this part of the world need to strike a value balance between roads and railways, as we all need to gain by helping the environment.”
Hydrogen-powered train to boost environment
Rail remains one of the more energy-efficient forms of travel, and that is expected to further improve as technology progresses.
On average, trains emit about 10 times less carbon dioxide per passenger kilometre than do planes, and about five times less than cars.
Urban transport specialist Alstom developed the Dubai Tram, and also worked on Dubai Metro and stage one of Etihad Rail’s signalling.
The company’s Coradia iLint is the world’s first hydrogen fuel cell passenger train.
It is quiet, emission-free and emits only condensation and water vapour.
The train was trialled in Poland on non-electrified lines, and is now in operation across Europe.
Alstom’s regional managing director, Mama Sougoufara, said passenger rail has an exciting future in the Gulf.
“The planned Gulf Railway will connect the Gulf States as we see in Europe,” he said.
“I have no doubt it will be a success for both freight and passenger movement.
“As people around the world become more environmentally conscious including here in the GCC, you will see a stronger demand on lower emissions transport.”
The UAE has committed to a carbon-neutral path, and aims to achieve net zero greenhouse gas emissions by 2050.
A short round trip economy flight from Dubai to Riyadh equates to about 0.4 tonnes of carbon emissions, almost a quarter of personal emissions targets.
“Providing a rail solution will significantly decrease that amount, even without using green energy,” said Mr Sougoufara.
“To incentivise people, governments and the industry need to ensure that public transport is available, affordable, convenient, attractive and more efficient than personal cars or planes, where appropriate.
“Unlike countries with established networks, the GCC has the opportunity to build new networks with the latest technology from the start.”
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PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Turning%20waste%20into%20fuel
%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
Global state-owned investor ranking by size
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Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
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.”
UAE currency: the story behind the money in your pockets
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
The biog:
From: Wimbledon, London, UK
Education: Medical doctor
Hobbies: Travelling, meeting new people and cultures
Favourite animals: All of them