Latest: Etihad Rail's Abu Dhabi-Dubai train 'could lead to GCC-wide network'
The UAE's rail project will expand to include passenger train services running across the country, the UAE's leaders said on Sunday in a major announcement.
Etihad Rail's network will grow from running heavy goods services to carry millions of passengers between its major cities by 2030, the government said.
The project – worth an estimated Dh200 billion to the economy – will allow "passengers to travel from Abu Dhabi to Dubai in 50 minutes, and from Abu Dhabi to Fujairah in 100 minutes", a statement read.
"Etihad Rail is the largest project to consolidate the strength of the union for the next 50 years. It will connect 11 key cities and regions across the UAE," said Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.
"The project comes in line with the environmental policy of the UAE and it will reduce carbon emissions by 70-80 per cent".
At a briefing at Expo 2020 Dubai, Sheikh Mohammed bin Rashid and Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, reviewed progress on the expanding rail network and its impact on the local economy.
Officials did not give a start date for the first passenger services but said "by 2030, the number of passengers is expected to reach more than 36.5 million annually".
"The National Railways Programme reflects the true meaning of integration into our national economic system, as we see the largest partnership between government entities at the federal and local levels," The Crown Prince said.
"It comes to support a national vision to connect the country’s key centres of industry and production, open new trade routes and facilitate population movement, creating the most developed work and life environment in the region.”
The first phase of Etihad Rail, completed in 2016, is largely used to move industrial products such as sulphur between key ports, taking thousands of heavy vehicles off the roads.
New passenger services will run faster at about 200 kilometres per hour, the statement read. Stations will stretch from Sila near the Saudi Arabian border to Fujairah on the east coast.
“Today, I witnessed with my brother Mohamed bin Zayed the [progress] of Etihad Rail,” Sheikh Mohammed bin Rashid said on Twitter.
The Dh50bn ($13.6bn) spent on the project is expected to contribute about Dh200bn to the economy.
“The Etihad Rail project represents the spirit of the union because it links the Emirates cities and ports with one economic artery," he said.
“It is a project with which we are proud to enter the new 50 years in the UAE. What will come next is more beautiful and greater.”
On November 21, Etihad Rail said it had completed excavation work on nine tunnels over nearly 7km, which involved blasting through sections of the Hajar mountain range on the east coast.
Once completed, the network will measure about 1,200km, connecting Shah and Habshan to Ruwais, and link the UAE to Saudi Arabia.
Phase one is complete and operating along a 264km route from Shah and Habshan to Ruwais, transporting sulphur.
Phase two links the UAE and Saudi Arabia from Fujairah Port to Ghuweifat, through Mussaffah, Khalifa Port and Jebel Ali Port. The two phases together will support more than 9,000 jobs, many of them UAE nationals.
Once fully operational, the fleet of trains and wagons will replace 5,600 daily road trips by lorries.
A fully loaded train emits up to 80 per cent less carbon dioxide than lorries transporting the same tonnage.
Video: Onboard Etihad Rail's track testing train
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Germany v Mexico, 7pm, tomorrow
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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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THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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