Etihad Rail offers a glimpse of its network in Dubai


Patrick Ryan
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Etihad Rail has shared a video offering an update on its Dubai route, which reveals the scale of the infrastructure behind the project.

The UAE megaproject is expected to radically transform transport in the country, for passengers, as well as trade and logistics.

The video, shared on the rail company's Twitter page, offers a glimpse of Al Qudra and Expo bridges, two of the 11 that make up the network in Dubai.

Building bridges

Al Qudra Bridge is the longest along the main line of the network, stretching for more than 610 metres and built from 15,000 cubic metres of concrete and 4,000 tonnes of steel.

Also featured in the video is the Expo Bridge. About 319-metres long, more than 7,310 cubic metres of concrete and almost 1,950 tonnes of steel went into its construction.

It also has more than 40 ground supports.

The video ends with a glimpse of the cargo terminal in Dubai Industrial City which is 5.5 million square metres in size.

Earlier this year, Etihad Rail announced its freight network was fully operational.

The freight line, which opened in February, consists of a fleet of 38 locomotives and more than 1,000 wagons.

There are four major ports and seven logistics centres across the country connected by the freight network.

Cutting down on travel time for motorists

Commuters will be among those who benefit most from the project. Significant social and environmental benefits would be created as a result of the network, according to Gottfried Eymer, chief executive of the Etihad Rail freight network.

“The benefit for people will be very good and positive,” said Mr Eymer, speaking at the Middle East Rail conference in May.

“Instead of 300 lorries, you have one train driver. Instead of people waiting in traffic jams, we are moving lorries to railway.

“As we are providing those services on a different network, we are delivering the streets for daily road transport.”

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UAE currency: the story behind the money in your pockets

The Outsider

Stephen King, Penguin

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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Updated: July 14, 2023, 10:32 AM