The UAE's rail project took a significant step forward on Thursday, as plans for a 30-minute high-speed train service connecting Abu Dhabi to Dubai were unveiled.
The country's largest infrastructure scheme, being led by Etihad Rail, is set to transform the nation's public transport network, greatly improve connectivity between the emirates and spur continued economic growth.
The planned Abu Dhabi to Dubai line will complement the existing Etihad Rail initiative, which will see trains run between 11 cities and regions, stretching from Al Sila to Fujairah and taking in Al Ruwais, Al Mirfa, Dubai, Sharjah, Al Dhaid and Abu Dhabi.
Here, The National explains everything we know about the fast-developing initiative.
New high-speed route
On Thursday, Abu Dhabi Media Office said the new line from Etihad Rail would cut the journey time between the two emirates to 30 minutes. Trips between the emirates typically take at least one hour by car and longer by bus.
Trains will travel up to 350kph – in comparison with the 200kph speed of the other Etihad Rail passenger trains in the works – on a route that will pass through “key destinations and tourist attractions”.
The new high-speed electrified line will feature six stations at Reem Island, Yas Island, Saadiyat Island, Zayed International Airport, close to Al Maktoum International Airport in Dubai and Jaddaf, near Dubai Creek.
Construction has yet to start and a date for the launch of services was not revealed, but tenders for contracts have been issued and network designs approved, Etihad Rail said.
Connecting the nation
The latest milestone announcement comes 12 months after Etihad Rail marked its first passenger journey.
Freight services became fully operational across the country in 2023 and, after the successful maiden passenger service in January 2024, the hope is the network will be open to the public soon.
What is Etihad Rail and where does it go?
Work on Etihad Rail began in 2009. Since 2016, two tracks spanning 264km have been in operation – with trains transporting granulated sulphur from gas fields 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 can pull up to 110 wagons.
When complete, the network will connect the seven emirates to the five neighbouring GCC states.
The line will ultimately link the UAE and Saudi Arabia from Fujairah Port to Ghuwaifat, through Khalifa Port and Jebel Ali Port.
Etihad Rail mapped
What is already complete?
Etihad Rail celebrated a major milestone in 2023 by announcing the network was open and freight services were fully operational.
Freight trains can travel at up to 120kph and the fleet of 1,082 wagons can carry everything from shipping containers to construction materials.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, officially opened the freight line.
It features a fleet of 38 locomotives and more than 1,000 wagons.
On the right track
Etihad Rail’s passenger trains will travel at up to 200kph, carrying about 400 people.
A start date for the passenger service has yet to be announced but the first station is being built in Fujairah.
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 times of 50 minutes between Abu Dhabi and Dubai and about 100 minutes from Abu Dhabi to Fujairah.
A luxury train service is also in the works, after an agreement was reached between Italian luxury hospitality company Arsenale and Etihad Rail.
This service, consisting of 15 plush carriages, is expected to cross the UAE from Fujairah down to the Liwa desert in Abu Dhabi.
Travel time
In October, Etihad Rail announced the journey times for some of its main passenger routes, not including the new high-speed line.
Travelling from Abu Dhabi to Dubai will take 57 minutes, while a trip from Abu Dhabi to Fujairah on the east coast will take 105 minutes. The rail operator also said the travel time between Abu Dhabi and Al Ruwais, about 240km west of the capital, will be 70 minutes.
What about Oman?
The railway network will connect Sohar, via Sohar Port, to Abu Dhabi.
Trains are estimated to take 1 hour 40 minutes between Abu Dhabi and Sohar, and only 47 minutes from Al Ain to Sohar. A start date for the service has yet to be announced.
Ways to control drones
Countries have been coming up with ways to restrict and monitor the use of non-commercial drones to keep them from trespassing on controlled areas such as airports.
"Drones vary in size and some can be as big as a small city car - so imagine the impact of one hitting an airplane. It's a huge risk, especially when commercial airliners are not designed to make or take sudden evasive manoeuvres like drones can" says Saj Ahmed, chief analyst at London-based StrategicAero Research.
New measures have now been taken to monitor drone activity, Geo-fencing technology is one.
It's a method designed to prevent drones from drifting into banned areas. The technology uses GPS location signals to stop its machines flying close to airports and other restricted zones.
The European commission has recently announced a blueprint to make drone use in low-level airspace safe, secure and environmentally friendly. This process is called “U-Space” – it covers altitudes of up to 150 metres. It is also noteworthy that that UK Civil Aviation Authority recommends drones to be flown at no higher than 400ft. “U-Space” technology will be governed by a system similar to air traffic control management, which will be automated using tools like geo-fencing.
The UAE has drawn serious measures to ensure users register their devices under strict new laws. Authorities have urged that users must obtain approval in advance before flying the drones, non registered drone use in Dubai will result in a fine of up to twenty thousand dirhams under a new resolution approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
Mr Ahmad suggest that "Hefty fines running into hundreds of thousands of dollars need to compensate for the cost of airport disruption and flight diversions to lengthy jail spells, confiscation of travel rights and use of drones for a lengthy period" must be enforced in order to reduce airport intrusion.
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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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THE BIO
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Favourite colour: All the colours that dogs come in
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