The passenger train line being built in the UAE has the potential to change where people live, work and study, according to a senior figure from Etihad Rail.
The route was the subject of much attention on the opening day of the Middle East Rail conference on Tuesday, taking place at the Abu Dhabi National Exhibition Centre.
A launch date for the passenger line between Dubai and Abu Dhabi has yet to be announced, but industry experts believe it will transform the lives of people all over the UAE and across the region.
The passenger trains, capable of travelling at up to 200 kilometres an hour, will significantly reduce the travel time between the two cities and ease the amount of traffic on the roads, experts said.
“This project can play a big part in deciding where we work, live and study in the future,” Ahmed Al Hashemi, executive director of passenger services at Etihad Rail, told The National.
“There are many benefits. Not least it will mean fewer people travel by car, which is better for the environment, and it will also reduce the number of accidents as travelling by train is much safer.
“It is also faster and much more convenient.”
No update was provided as to when the passenger line between Dubai and Abu Dhabi would open.
However, it was announced in March that the tracks between the two emirates had been joined up.
The link between Dubai and Abu Dhabi stretches for more than 250km and includes 29 bridges, 60 crossings and 137 drainage channels.
The section linking Abu Dhabi and Dubai is part of Etihad Rail’s wider network which runs across 1,200 kilometres from the border of Saudi Arabia to Oman.
It is expected to carry more than 36 million people each year by 2030 between 11 cities in the seven emirates.
The travel time between Abu Dhabi and Dubai is expected to be about 50 minutes, with a journey from the UAE capital to Fujairah said to take twice that time.
Mr Al Hashemi said the railway system would be good news for everyone, including those who never plan to set foot on board a train.
“Even if you’re not planning on travelling any way other than by car, you will still enjoy the roads having less traffic on them,” he said.
“With a train, you feel much safer as well because it’s less impacted by things like weather conditions.”
Part of the Etihad Rail network is already operational, with freight trains running from gasfields at Shah and Habshan to Ruwais since 2016.
The service carries 22,000 tonnes of granulated sulphur each day.
Another expert believes the rail network will go a long way to enabling the UAE to meet its commitment to reducing its carbon footprint, as well as making the lives of residents and visitors hassle-free.
“If you're arriving at the airport, you will soon be able to hop on a train rather than having to go and rent a car to get to where you want,” said Tamer Salama, managing director in the GCC of French rail-equipment maker Alstom.
“It is much more cost-effective for residents who commute as well, as they will be saving money they would otherwise spend on the likes of fuel and Salik gate fees.”
A regular passenger service between the emirates, and eventually to countries across the region, would also be an attractive proposition for people trying to travel to and from business meetings, said another senior expert.
“People will be able to work remotely on a train, whereas that time would have been lost if they were having to drive themselves,” said Leon Soulier, chief executive of Siemens Mobility in the Middle East and Africa.
However, he said that if the service was going to be a success, there were still some challenges ahead beyond simply putting a train down on a track.
“In other countries, commuters don’t mind walking to a train station because the weather isn’t so hot,” he said.
“That’s not the case here. We have to make sure there’s the infrastructure in place for people to get from their front door to the train station as easily as possible.
“There needs to be a proper feeder network in place, with the likes of buses making regular trips to the stations.”
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.”
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
UAE players with central contracts
Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.
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UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Results:
6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres
Winner: Rodaini, Connor Beasley (jockey), Ahmad bin Harmash (trainer)
7.05pm: Handicap | $135,000 (Turf) | 1,200m
Winner: Ekhtiyaar, Jim Crowley, Doug Watson
7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m
Winner: Spotify, James Doyle, Charlie Appleby
8.15pm: UAE Oakes | Group 3 | $250,000 (D) | 1,900m
Winner: Divine Image, William Buick, Charlie Appleby
8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m
Winner: Mythical Image, William Buick, Charlie Appleby
9.20pm: Handicap | $135,000 (T) | 1,600m
Winner: Major Partnership, Kevin Stott, Saeed bin Suroor
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory