The UAE rail project that will include city-to-city passenger services could be the first step towards a GCC-wide network, a leading transport expert has said.
Aaditya Thakrar, strategic transport planning manager for engineering firm Aecom, said the passenger service was a major breakthrough that would transform the region.
The project could lead to benefits such as reducing levels of traffic congestion and improving road safety, as well as making the region a more desirable place to work and study, he said.
Mr Thakrar spoke on the sidelines of the opening day of the Gulf Traffic conference at Dubai’s World Trade Centre.
A Gulf-wide freight and passenger train network has been mooted for years but has yet to come to fruition. Experts recently told The National that the push for lower emission transport and joint infrastructure projects could change that.
“This is a great initiative that could follow on to become a GCC-wide network,” Mr Thakrar said.
This will obviously have a beneficial impact on road safety as there will be far less private vehicles being used
Aaditya Thakrar,
Aecom
“It’s an impressive starting point and it will tie into the existing system and will encourage people to get out of their cars and take other forms of transport.”
UAE leaders revealed on Sunday night that the country’s rail system would be expanded to include passenger services across the country.
Etihad Rail’s network will grow from transporting heavy goods to carrying millions of passengers between UAE cities, the government said.
People will be able to travel from Abu Dhabi to Dubai in 50 minutes, and to Fujairah from Abu Dhabi in 100 minutes by 2030.
A statement from the government said the project was worth Dh200 billion ($54.45bn) to the economy but the benefits were far more than merely financial, Mr Thakrar said.
“This will obviously have a beneficial impact on road safety as there will be far less private vehicles being used,” he said.
“A major cause of traffic accidents right now is driver behaviour but, with technological advances, there are smarter systems being invented.
“If you combine that with less traffic, it’s definitely going to have a significant effect for the better.”
The announcement of a passenger service also sends a strong message both regionally and globally, said Mr Thakrar.
“Typically this region is seen as being strong in fossil fuel and energy but this shows we are also focused on mass mobility and sustainability,” he said.
“It’s not simply a case of business as usual."
Residents and commuters will be among the big winners of a new passenger train service, he said.
“It’s great to think you can sit back and relax on a train from Dubai or Abu Dhabi and not have to worry about driving," he said.
The chief executive of a company that manages traffic accidents in the UAE said the passenger train service would improve the quality of life across the country.
“There will not be as much need to own a car because there will be more options to get from A to B,” said Ibrahim Ramel, chief executive of Saeed.
“Owning a car is also expensive. Especially if you calculate how long it’s actually on the road for compared to the time spent parked up not being used.”
He also said the UAE government’s push towards encouraging people to use public transport was good news for the environment.
“The more people who use public transport, whether its trains, trams or buses, the better it is for everyone,” he said.
Mr Ramel said owning a car would soon be regarded as a luxury rather than necessity, as traditional models of transport continued to be challenged by the demand for sustainable alternatives.
“It’s like watches. Less people wear them these days because they have phones that also tell them the time,” he said.
“The same is happening with cars. I predict in 10 years’ time there will be an increase in luxury car ownership but normal car production will actually decrease.”
THE SPECS
Cadillac XT6 2020 Premium Luxury
Engine: 3.6L V-6
Transmission: nine-speed automatic
Power: 310hp
Torque: 367Nm
Price: Dh280,000
MATCH INFO
Everton 0
Manchester City 2 (Laporte 45 2', Jesus 90 7')
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Company%20Profile
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Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
MATCH INFO
Osasuna 1 Real Madrid 4
Osasuna: García (14')
Real Madrid: Isco (33'), Ramos (38'), Vázquez (84'), Jovic (90' 2)
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
DUBAI CARNIVAL RESULTS
6.30pm Handicap US$135,000 (Turf) 2,410m
Winner Dubai Future, Harry Bentley (jockey), Saeed bin Suroor (trainer).
7.05pm UAE 1000 Guineas Listed $250,000 (Dirt) 1,600m
Winner Dubai Love, Patrick Cosgrave, Saeed bin Suroor.
7.40pm Dubai Dash Listed $175,000 (T) 1,000m
Winner: Equilateral, James Doyle, Charles Hills.
8.15pm Al Bastakiya Trial Conditions $100,000 (D) 1.900m
Winner Laser Show, Kevin Stott, Saeed bin Suroor.
8.50pm Al Fahidi Fort Group Two $250,000 (T) 1,400m
Winner Glorious Journey, James Doyle, Charlie Appleby.
9.25pm Handicap $135,000 (D) 2,000m
Winner George Villiers, Tadhg O’Shea, Satish Seemar.
HAEMOGLOBIN DISORDERS EXPLAINED
Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.
Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.
The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.
The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.
A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.
PREMIER LEAGUE TABLE
1 Man City 26 20 3 3 63 17 63
2 Liverpool 25 17 6 2 64 20 57
3 Chelsea 25 14 8 3 49 18 50
4 Man Utd 26 13 7 6 44 34 46
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5 West Ham 26 12 6 8 45 34 42
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6 Arsenal 23 13 3 7 36 26 42
7 Wolves 24 12 4 8 23 18 40
8 Tottenham 23 12 4 8 31 31 39
The%20specs
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Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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.”
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5