Sharjah set for new Etihad Rail station

A new Etihad Rail passenger service station will be built in Sharjah, it has been announced.

The facility will be situated close to the emirate's University City and be connected to the main UAE-wide line.

The area is a key location being close to Sharjah Airport and home to scores of educational institutions.

Once up and running, the new station will help to increase the number of passengers on Etihad Rail to about 14,000 a day during the week.

Illustrations from the signing ceremony on Wednesday showed a sleek Etihad Rail train passing through Sharjah with the emirate's skyline in the background.

Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, and Sheikh Theyab bin Mohamed, chairman of the Etihad Rail board, witnessed the signing.

Etihad Rail's freight network is now operational. It can transport 60 million tonnes of goods a year. All photos: Etihad Rail
The new freight service has 38 locomotives
The freight trains will run up to 120kph, with each locomotive operating at 4,500 horsepower
The locomotives pull a total of 1,000 wagons, transporting goods ranging from shipping containers to industrial material
The tracks cross the UAE and feature 593 bridges
The network will contribute Dh200 billion ($54.4 billion) to the UAE economy and save Dh8 billion in road maintenance costs
The project also aims to reduce carbon emissions from the road transport sector by 21 per cent by 2050, boosting the country's efforts to become net zero

“This step enhances the connection between residential communities in the emirates and makes it easier for passengers to move among the stations in the network, especially as Sharjah is strategically located, connecting Dubai with the other Northern Emirates and hosting vital centres and landmarks,” Sheikh Theyab said.

Shadi Malak, chief executive of Etihad Rail, and Naji Al Harthi, chairman of Tristar Engineering and Construction Company, signed the agreement.

The Etihad Rail passenger network aims to link 11 cities and regions across the country, from Al Sila to Fujairah, taking in Sharjah, Al Ruwais, Al Mirfa, Fujairah, Al Dhaid, Abu Dhabi and Dubai.

No date has been confirmed for when the UAE-wide passenger rail service will start running.

But the first passenger journey on Etihad Rail took place between Abu Dhabi and Al Dhannah in January.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and managing director and group chief executive of Adnoc, was among the first passengers.

The route will enable Adnoc workers to travel by train from Abu Dhabi to Al Dhannah, 250km west of the capital.

Passenger trains will travel at up to 200kph, with a capacity for about 400 people.

Customers were told to expect travel time of 50 minutes between Abu Dhabi and Dubai and about 100 minutes from Abu Dhabi to Fujairah, cutting commutes significantly.

Etihad Rail’s freight network, meanwhile, is already up and running.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer