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


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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 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
    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
    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
    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
    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 said said he was 'proud of our world-class facilities in Al Ruwais Industrial City'
  • Dr Al Jaber meets Etihad Rail staff
    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
    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.”

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: May 08, 2024, 9:04 AM