Etihad Rail makes first passenger journey between Abu Dhabi and Al Dhannah

The first passenger journey on Etihad Rail's route between Abu Dhabi and Al Dhannah took place on Thursday.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, was among the first passengers.

Once operational, the route, which was announced in November, will enable Adnoc workers to travel by train from Abu Dhabi to Al Dhannah, 250km west of the capital.

“The development of passenger rail services between Abu Dhabi City and Al Dhannah City aims to connect the UAE’s main centres of trade, industry, manufacturing, production, logistics and population,” said Dr Al Jaber.

“The Etihad Rail project is more than just a rail network, it will serve as a vital artery for economic growth and infrastructure development while driving decarbonisation, for the benefit of the UAE and its people.”

Etihad Rail's chief executive also commented on Thursday's journey and what it means to the UAE.

“Etihad Rail is strengthening the position that the UAE enjoys as a leading global hub within the logistics, transportation and infrastructure sectors, by providing more effective and reliable transportation solutions in line with the highest international standards and connecting cities and industries with a safe and sustainable rail network,” said Shadi Malak.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, joined Etihad Rail’s first passenger journey linking the cities of Abu Dhabi and Al Dhannah. All photos: Adnoc
Dr Al Jaber met with Adnoc staff as part of a tour
Once fully operational, the rail service will enable Adnoc’s staff and contractors to travel the 250km between the two cities
Dr Al Jaber said the development of passenger rail services between Abu Dhabi and Al Dhannah aims to connect the UAE’s main centres of trade, industry, manufacturing, production, logistics and population
No date has been confirmed for the start of the UAE's passenger rail service but it was announced in 2022 that the first passenger station would be Sakamkam in Fujairah
Dr Al Jaber said said he was 'proud of our world-class facilities in Al Ruwais Industrial City'
Dr Al Jaber meets Etihad Rail staff
Etihad Rail announced in February last year that its vast freight network was fully operational, with a fleet of 38 locomotives and more than 1,000 wagons

No date has been confirmed for when the UAE's passenger rail service will begin. But it was announced in 2022 that the first passenger station would be Sakamkam in Fujairah.

Etihad Rail announced in February last year that its vast freight network was fully operational.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, officially opened the freight line.

It consists of a fleet of 38 locomotives and more than 1,000 wagons.

All aboard the passenger service

The passenger trains will travel at up to 200kph and can carry about 400 people, linking 11 cities and areas across the UAE, according to details released by Etihad Rail in 2022.

Carriages will offer Wi-Fi, entertainment systems, charging points and food and drink options to cater for everyone from families to workers and tourists.

Customers were told to expect travel time of 50 minutes between Abu Dhabi and Dubai and about 100 minutes from Abu Dhabi to Fujairah, cutting commutes significantly.

Plans for a luxury train service were also unveiled last year, the result of an agreement between Italian luxury hospitality company Arsenale and Etihad Rail.

The “rail cruise” is expected to cross the UAE from Fujairah in the east down to the Liwa desert in Abu Dhabi. The train will consist of 15 luxury carriages.

Tour of facility

Following the milestone journey, Dr Al Jaber also toured Adnoc's hub in Al Ruwais Industrial City

“I am proud of our world-class facilities in Al Ruwais Industrial City and the commitment and dedication of our staff, who are passionate to showcase our unwavering commitment to excellence and innovation,” he said.

“Our facilities and expert workforce play a pivotal role in enhancing our nation’s status as a responsible and reliable global energy leader.”

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer