A luxury train service is set to bring a new golden age of rail travel to the UAE.
The country's railway operator, Etihad Rail, and Italian luxury hospitality company Arsenale on Tuesday signed an agreement at Abu Dhabi's Middle East Rail conference to establish the service.
A launch date was not revealed but the service, which has been called a “rail cruise”, is expected to cross the UAE from Fujairah in the east down to the historic Liwa desert in Abu Dhabi. The train will consist of 15 luxury carriages and work on them is being undertaken in Puglia and Sicily, Arsenale said.
It brings to mind the great railway journeys of yesteryear such as the famed Orient Express.
More details are expected in the coming months but Arsenale said the carriages will reflect Emirati heritage, while the “production, craftsmanship, quality of on-board services, interior design and know-how will be Italian, and the ‘made in Italy’ signature branding will be the basis on which the entire project will be developed”.
It comes as developments on the UAE-wide railway network move full steam ahead. The network was formally opened in February with a freight service now operating. A passenger service is also advancing rapidly.
“Our collaboration with Arsenale is a testament to Etihad Rail’s commitment to drive economic and social growth in the UAE through the National Rail Network,” said Shadi Malak, chief executive of Etihad Rail, in statement released on Wednesday.
“By establishing a luxury train experience, we are introducing a unique world-class offering to the region and contributing to boosting the tourism sector in the UAE.
“Furthermore, we will be able to showcase the country’s diverse heritage and beauty to visitors from around the world.”
It is Arsenale’s second international luxury train project following the recent announcement of The Dream of the Desert project in Saudi Arabia. And it is envisaged the UAE service will eventually extend into the GCC. Arsenale is also planning to operate a luxury train service called " La Dolce Vita" in Italy.
“We are thrilled to work together with Etihad Rail on this ground-breaking project that will promote the discovery of a magical and exciting territory outside of the renowned destinations of Abu Dhabi and Dubai,” said Paolo Barletta, chief executive of Arsenale.
“Railway cruising is the future of tourism and Arsenale wants to make it available in the world’s most beautiful places, introducing this fascinating and sustainable new way of travelling,” he said.
“We are delighted to announce that UAE will be one of the first countries in the world to launch this unique service with us. I want to thank Etihad Rail for believing in this project since the beginning. With this signing, we are ready to work tirelessly to enable travellers to soon come on board of our train, discovering the enchanting natural wonders of UAE.”
The Orient Express was established in 1883 and ran from Paris to Istanbul. It became synonymous with sophistication and glamour.
Railway travel is also undergoing something on a resurgence, buoyed by people's desire to travel more sustainably and without the hassle of airports. OBB, Austria’s national rail operator, for example is launching new sleeper cars on its services across Europe. Other European railway operators are planning similar initiatives.
More deals struck at rail event
Etihad Rail signed seven agreements during the major transport event aimed at driving the development of its freight and passenger services.
The national rail operator agreed partnerships with ride-hailing company Uber and drone cargo specialist, SkyGo.
“The agreement with Uber is in line with Etihad Rail’s efforts to improve the quality of life of people around the country, by supporting our ability to provide accessible transportation across the UAE, including in areas with limited accessibility,” said Mr Malak.
No further details were disclosed on the agreement with Uber.
“With SkyGo, we are collaborating on freight train drone inspection, utilising the company’s technology to benefit from data services, and the agreement is yet another example of our drive to innovate, establish new processes, and build on our existing digitalisation efforts,” added Mr Malek.
Etihad Rail signed a 20-year partnership agreement with DHL Global Forwarding to set up a joint venture as part of the country's efforts to strengthen its freight network.
The joint venture will enable DHL to use Etihad Rail’s network to conduct its main operations within the UAE, Etihad Rail said in statement on Tuesday.
Etihad Rail project – in numbers
Pros%20and%20cons%20of%20BNPL
%3Cp%3E%3Cstrong%3EPros%3C%2Fstrong%3E%0D%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EEasy%20to%20use%20and%20require%20less%20rigorous%20credit%20checks%20than%20traditional%20credit%20options%0D%3C%2Fli%3E%0A%3Cli%3EOffers%20the%20ability%20to%20spread%20the%20cost%20of%20purchases%20over%20time%2C%20often%20interest-free%0D%3C%2Fli%3E%0A%3Cli%3EConvenient%20and%20can%20be%20integrated%20directly%20into%20the%20checkout%20process%2C%20useful%20for%20online%20shopping%0D%3C%2Fli%3E%0A%3Cli%3EHelps%20facilitate%20cash%20flow%20planning%20when%20used%20wisely%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cstrong%3ECons%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EThe%20ease%20of%20making%20purchases%20can%20lead%20to%20overspending%20and%20accumulation%20of%20debt%0D%3C%2Fli%3E%0A%3Cli%3EMissing%20payments%20can%20result%20in%20hefty%20fees%20and%2C%20in%20some%20cases%2C%20high%20interest%20rates%20after%20an%20initial%20interest-free%20period%0D%3C%2Fli%3E%0A%3Cli%3EFailure%20to%20make%20payments%20can%20impact%20credit%20score%20negatively%0D%3C%2Fli%3E%0A%3Cli%3ERefunds%20can%20be%20complicated%20and%20delayed%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cem%3ECourtesy%3A%20Carol%20Glynn%3C%2Fem%3E%3C%2Fp%3E%0A
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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%3Cp%3EFly%20with%20Etihad%20Airways%20from%20Abu%20Dhabi%20to%20New%20York%E2%80%99s%20JFK.%20There's%2011%20flights%20a%20week%20and%20economy%20fares%20start%20at%20around%20Dh5%2C000.%3Cbr%3EStay%20at%20The%20Mark%20Hotel%20on%20the%20city%E2%80%99s%20Upper%20East%20Side.%20Overnight%20stays%20start%20from%20%241395%20per%20night.%3Cbr%3EVisit%20NYC%20Go%2C%20the%20official%20destination%20resource%20for%20New%20York%20City%20for%20all%20the%20latest%20events%2C%20activites%20and%20openings.%3Cbr%3E%3C%2Fp%3E%0A
CHINESE GRAND PRIX STARTING GRID
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What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
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.”
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
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Rating: 5/5
The specs
Engine: 3.5-litre V6
Power: 272hp at 6,400rpm
Torque: 331Nm from 5,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.7L/100km
On sale: now
Price: Dh149,000