Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has officially opened the UAE's freight train network. Wam
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has officially opened the UAE's freight train network. Wam
Sheikh Mohammed announced the launch of the freight network at the main control and maintenance centre in Abu Dhabi’s Al Fayah region. Wam
Sheikh Mohammed announced the launch of the freight network at the main control and maintenance centre in Abu Dhabi’s Al Fayah region. Wam
Sheikh Mohammed and Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, in a carriage with other officials. Photo: Dubai Media Office
Sheikh Mohammed and Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, in a carriage with other officials. Photo: Dubai Media Office
Sheikh Mohammed, Vice President and Ruler of Dubai, and UAE officials attend the launch of the network. Wam
Sheikh Mohammed, Vice President and Ruler of Dubai, and UAE officials attend the launch of the network. Wam
Sheikh Mohammed, Vice President and Ruler of Dubai, at the inauguration. Wam
Sheikh Mohammed, Vice President and Ruler of Dubai, at the inauguration. Wam
The freight trains can transport 60 million tonnes of goods a year and can reach speeds of up to 120kph. Photo: Abu Dhabi Media Office
The freight trains can transport 60 million tonnes of goods a year and can reach speeds of up to 120kph. Photo: Abu Dhabi Media Office

UAE

Government

Etihad Rail: Sheikh Mohammed bin Rashid launches freight operations across UAE

With 38 locomotives and more than 1,000 wagons, new network is capable of transporting all types of goods

Shuchita Gautam
Shuchita Gautam

February 23, 2023

  • English
  • Arabic

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has officially opened the UAE's freight train network.

He announced the launch of the freight network at the main control and maintenance centre in Abu Dhabi’s Al Fayah region on Thursday, news agency Wam reported.

The network consists of a fleet of 38 locomotives and more than 1,000 wagons capable of transporting all types of goods.

It will connect four major ports and seven logistics centres across the country.

The network also includes a number of charging stations located in Ruwais, the Industrial City of Abu Dhabi, Khalifa Port, Dubai Industrial City, Jebel Ali Port, Al Ghail and Fujairah Port.

These locations are a major hub for local and regional distribution and logistics services, as they include customs warehouses and on-site cargo inspection services.

“We are proud of the performance of our sons and daughters who have worked hard over the years to build an ambitious strategic project that will propel our national economy to greater heights,” Sheikh Mohammed said.

“Connecting the Emirates via a national railway network strengthens our capabilities and competitiveness, and consolidates our unity.”

The project, one of the largest infrastructure programmes in the region, aims to connect all seven emirates through a main rail network.

.
.

The network, which runs across different geographical terrains, includes 593 bridges and crossings, and nine tunnels.

The freight trains have a capacity of transporting 60 million tonnes of goods per year and can run up to 120kph.

Sheikh Mohammed said that the national railway network is a vital milestone in the UAE’s development journey and a groundbreaking initiative that strengthens the country’s preparations for the future.

The project is expected to contribute Dh200 billion to the national economy by 2050, save Dh8 billion in road maintenance costs and provide Dh23 billion in tourism revenue.

Sheikh Theyab bin Mohamed, member of the Abu Dhabi Executive Council and chairman of Etihad Rail, said the project will accelerate the country’s economic development.

“Emirati talent with the support of the UAE leadership, has turned the dream of our founding fathers into reality,” he said.

“Thanks to them, we won the bet, and we succeeded in launching a railway network with international specifications that extends to about 900km across the Emirates.

“The completion of the network according to the schedule and the approved budget would not have been possible without the cohesion of our talented Emiratis.”

The main line of the network extends from Ghuweifat on the border of Saudi Arabia, to Fujairah, forming an essential part of the global supply network.

Stage one of the network has been fully operational since January 2016 and stage two of the project started in early 2020.

The project also supports the UAE’s sustainable development goals and contributes to achieving the net zero by 2050 by reducing carbon emissions on the roads by 21 per cent and reducing road transport emissions per capita by 40 per cent by 2050.

The cargo wagons can carry all types of goods, including petrochemicals, raw steel, limestone, cement, building materials, industrial and domestic waste, aluminium, food commodities and general cargo.

The inauguration ceremony was attended by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai; Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior; Sheikh Hamed bin Zayed, member of the Abu Dhabi Executive Council; Sheikh Ahmed bin Saeed, chairman of Dubai Civil Aviation Authority, chairman of Dubai Airports and chairman and chief executive of Emirates Airline and Group; Sheikh Nahyan bin Mubarak, UAE Minister of Tolerance and Coexistence, and a number of ministers and senior officials.

The Etihad Rail route - in pictures

Railroad workers preparing tracks at a depot in January 2022. There has been rapid progress on a new line that will eventually carry passengers. All photos: Victor Besa / The National
Railroad workers preparing tracks at a depot in January 2022. There has been rapid progress on a new line that will eventually carry passengers. All photos: Victor Besa / The National
The new Etihad Rail line will connect 11 cities and areas across the UAE from Al Sila in the west to Fujairah in the north.
The new Etihad Rail line will connect 11 cities and areas across the UAE from Al Sila in the west to Fujairah in the north.
Work on the railway at Saih Shuaib.
Work on the railway at Saih Shuaib.
Etihad Rail workers on a railroad overpass along the E77 and E611 highway junction in Dubai.
Etihad Rail workers on a railroad overpass along the E77 and E611 highway junction in Dubai.
The overpass view along the E77 and E611 highway junction.
The overpass view along the E77 and E611 highway junction.
Etihad Rail says stations will celebrate the joy of travelling and designs will speak to regional traditions.
Etihad Rail says stations will celebrate the joy of travelling and designs will speak to regional traditions.
Some of the new stations will be built in the cities but the locations have not been yet announced.
Some of the new stations will be built in the cities but the locations have not been yet announced.
The Abu Dhabi to Dubai line is central to the project.
The Abu Dhabi to Dubai line is central to the project.
The train driver takes the diesel inspection line down the tracks.
The train driver takes the diesel inspection line down the tracks.
The Abu Dhabi to Dubai section of the track runs parallel to the Emirates Road (E611) motorway.
The Abu Dhabi to Dubai section of the track runs parallel to the Emirates Road (E611) motorway.
Newly laid tracks at the Dubai South area.
Newly laid tracks at the Dubai South area.
Railroad workers preparing tracks.
Railroad workers preparing tracks.
An Etihad Rail worker on the Abu Dhabi to Dubai line.
An Etihad Rail worker on the Abu Dhabi to Dubai line.
An Etihad Rail depot at Saih Shuaib.
An Etihad Rail depot at Saih Shuaib.
Passengers will also be able to use park and rides.
Passengers will also be able to use park and rides.
Passengers can expect travel time of 50 minutes between Abu Dhabi and Dubai and about 100 minutes from Abu Dhabi to Fujairah.
Passengers can expect travel time of 50 minutes between Abu Dhabi and Dubai and about 100 minutes from Abu Dhabi to Fujairah.
Construction of the UAE-wide network is advancing rapidly with close to 70 per cent of the twin-track route complete.
Construction of the UAE-wide network is advancing rapidly with close to 70 per cent of the twin-track route complete.
The addition of the passenger rail service marked an important moment for Etihad Rail since its establishment in 2009.
The addition of the passenger rail service marked an important moment for Etihad Rail since its establishment in 2009.
The rail track snakes through the desert.
The rail track snakes through the desert.
An Etihad Rail employee on the inspection line.
An Etihad Rail employee on the inspection line.
Three Etihad Rail workers take a rest, with the inspection train on right.
Three Etihad Rail workers take a rest, with the inspection train on right.
Stage two of the project joins Ghuweifat on the border with Saudi Arabia to Fujairah on the east coast in a line running for about 1,200km.
Stage two of the project joins Ghuweifat on the border with Saudi Arabia to Fujairah on the east coast in a line running for about 1,200km.
The passenger service is expected to carry more than 36 million passengers annually by the end of the decade.
The passenger service is expected to carry more than 36 million passengers annually by the end of the decade.

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.”

Updated: February 24, 2023, 11:39 AM
UAEEtihad Rail