Etihad Rail, the UAE’s megaproject to link the country’s centres of trade, industry and population, will grow from running heavy goods services to carrying millions of passengers between the major cities by 2030.
In a coastal village west of Abu Dhabi city, engineers, technicians and mechanics work day and night to keep the project on schedule.
The depot in Mirfa serves as the centre of operations that maintains and services all movement between the trains and track.
When complete, the network will stretch about 1,200 kilometres across the country and reduce carbon emissions by up to 80 per cent.
The railway line between Abu Dhabi and Dubai was joined up in March and connected to Ras Al Khaimah and Sharjah in October.
It has also been announced that the line will be extended into Oman. The agreement to build the Omani portion of rail network was signed on September 29 during the state visit of President Sheikh Mohamed to Oman.
The line will ultimately carry freight and passengers to connect Abu Dhabi with Sohar in the north of Muscat and more details are expected soon.
The Dh50 billion ($13.6bn) spent on the project is expected to contribute about Dh200bn to the economy.
Here's a glimpse of how the project will meet the global supply-demand needs of today:
What is Etihad Rail - and where does it go?
Etihad Rail was first established in 2009 and stage one of the project became operational in 2016.
Phase one is complete. Since 2016, two tracks spanning 264 kilometres have been in operation – with trains transporting granulated sulphur from gasfields in Shah and Habshan to an export point in Ruwais.
Every day, two trains run across the country, capable of carrying up to 22,000 tonnes of sulphur. Each train can pull up to 110 wagons.
When complete, the railway network will link the main centres of population and industry in the UAE and will form a vital part of the planned railway network across the Gulf region, connecting the seven emirates of the country to the five neighbouring GCC states.
On November 21, Etihad Rail said it had completed excavation work on nine tunnels over nearly seven kilometres, which involved blasting through sections of the Hajar mountain range on the east coast.
Phase two links the UAE and Saudi Arabia from Fujairah Port to Ghuwaifat, through Mussaffah, Khalifa Port and Jebel Ali Port with more than 600 kilometres of additional track. The two phases together will support more than 9,000 jobs, many of them for Emiratis.
Trains and wagons
Seven locomotives are in operation along the tracks, which run through rural areas in Abu Dhabi, delivering sulphur to clients.
The state-of-the-art trains were supplied by US-based Electro-Motive Diesel and are equipped with in-cab European signalling systems.
Weighing 30 tonnes each unladen, and 130 tonnes loaded, the wagons are fully equipped with extended safety features, including electronically controlled pneumatic brakes and derailment protection.
For stage two of the project, the train fleet will increase to 45 locomotives and connect the emirates via Abu Dhabi, Khalifa Industrial Zone Abu Dhabi, Khalifa Port, Jebel Ali Port, Dubai, Sharjah, Ras Al Khaimah and Fujairah.
Last year, the first batch of Emirati students graduated with diplomas in railways specialities, through a programme introduced by Etihad Rail. Maithaa Al Remeithi also became the first female Emirati train controller in the country, at the age of 29.
One freight train replaces hundreds of lorries
Rail travel scores highly as far as its sustainability goes and that has to be celebrated.
Once fully operational, the fleet of trains and wagons running on the Etihad Rail network will replace 5,600 lorry trips per day. A fully loaded train also emits up to 80 per cent less carbon dioxide than lorries transporting the same tonnage.
Based on traffic volume forecasts, the Etihad Rail network will reduce greenhouse gases by more than 2.2 million tonnes annually once fully operational, the equivalent of taking up to 375,000 vehicles off the roads.
What can be transported on the trains?
By connecting a country’s trade centres, rail acts as a catalyst for economic growth. In the coming years, wagons running along the Etihad Rail tracks will move anything from consumer goods to perishable food and beverages.
Some of the typical products expected to move across the Emirates include hay, ceramics, polymers, sugar, metals, waste and shipping containers.
The type of wagons used will vary, depending on the cargo being transported. They include intermodal steel containers; flat-bed wagons; rail gondolas with low-side walls for loose bulk materials and temperature-controlled carriages.
Will passengers be able to ride on Etihad Rail?
In the future, yes. While increasing freight opportunities is the focus for now, passenger transport will become a key part of the project in the years to come.
Officials did not give a start date for the first service but said "by 2030, the number of passengers is expected to reach more than 36.5 million annually" in a statement in December last year.
New passenger services will run fast at about 200 kilometres per hour. Stations will stretch from Sila near the border with Saudi Arabia to Fujairah on the east coast.
The train will allow "passengers to travel from Abu Dhabi to Dubai in 50 minutes, and from Abu Dhabi to Fujairah in 100 minutes", the statement read.
Etihad Rail is working closely with the Federal Transport Authority and transport authorities across the Emirates to develop existing networks and hubs to improve passenger connections.
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
25-MAN SQUAD
Goalkeepers: Francis Uzoho, Ikechukwu Ezenwa, Daniel Akpeyi
Defenders: Olaoluwa Aina, Abdullahi Shehu, Chidozie Awaziem, William Ekong, Leon Balogun, Kenneth Omeruo, Jamilu Collins, Semi Ajayi
Midfielders: John Obi Mikel, Wilfred Ndidi, Oghenekaro Etebo, John Ogu
Forwards: Ahmed Musa, Victor Osimhen, Moses Simon, Henry Onyekuru, Odion Ighalo, Alexander Iwobi, Samuel Kalu, Paul Onuachu, Kelechi Iheanacho, Samuel Chukwueze
On Standby: Theophilus Afelokhai, Bryan Idowu, Ikouwem Utin, Mikel Agu, Junior Ajayi, Valentine Ozornwafor
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
COMPANY%20PROFILE
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Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EPurpl%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EKarl%20Naim%2C%20Wissam%20Ghorra%2C%20Jean-Marie%20Khoueir%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EHub71%20in%20Abu%20Dhabi%20and%20Beirut%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2021%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E12%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%242%20million%26nbsp%3B%3C%2Fp%3E%0A
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.”
WHY%20AAYAN%20IS%20'PERFECT%20EXAMPLE'
%3Cp%3EDavid%20White%20might%20be%20new%20to%20the%20country%2C%20but%20he%20has%20clearly%20already%20built%20up%20an%20affinity%20with%20the%20place.%3Cbr%3E%3Cbr%3EAfter%20the%20UAE%20shocked%20Pakistan%20in%20the%20semi-final%20of%20the%20Under%2019%20Asia%20Cup%20last%20month%2C%20White%20was%20hugged%20on%20the%20field%20by%20Aayan%20Khan%2C%20the%20team%E2%80%99s%20captain.%3Cbr%3E%3Cbr%3EWhite%20suggests%20that%20was%20more%20a%20sign%20of%20Aayan%E2%80%99s%20amiability%20than%20anything%20else.%20But%20he%20believes%20the%20young%20all-rounder%2C%20who%20was%20part%20of%20the%20winning%20Gulf%20Giants%20team%20last%20year%2C%20is%20just%20the%20sort%20of%20player%20the%20country%20should%20be%20seeking%20to%20produce%20via%20the%20ILT20.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20is%20a%20delightful%20young%20man%2C%E2%80%9D%20White%20said.%20%E2%80%9CHe%20played%20in%20the%20competition%20last%20year%20at%2017%2C%20and%20look%20at%20his%20development%20from%20there%20till%20now%2C%20and%20where%20he%20is%20representing%20the%20UAE.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20was%20influential%20in%20the%20U19%20team%20which%20beat%20Pakistan.%20He%20is%20the%20perfect%20example%20of%20what%20we%20are%20all%20trying%20to%20achieve%20here.%3Cbr%3E%3Cbr%3E%E2%80%9CIt%20is%20about%20the%20development%20of%20players%20who%20are%20going%20to%20represent%20the%20UAE%20and%20go%20on%20to%20help%20make%20UAE%20a%20force%20in%20world%20cricket.%E2%80%9D%C2%A0%3C%2Fp%3E%0A