Etihad Rail, FAB sign Dh1.99b deal for passenger transport service

Etihad Rail on Thursday said it signed a Dh1.99 billion financing agreement with First Abu Dhabi Bank (FAB)) to launch railway passenger transport services in the country.

The deal comes as part of the UAE National Railways Programme, the largest land transport system of its kind in the UAE, where First Abu Dhabi Bank will be the certified lead arranger for the loan.

Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court, and Chairman of Etihad Rail, and Sheikh Mohamed bin Saif bin Mohamed Al Nahyan, Vice-Chairman of FAB’s board of directors witnessed the signing of the agreement by Shadi Malak, chief executive officer of Etihad Rail, and Hana Al Rostamani, group chief executive officer at FAB.

“Through this agreement with FAB, we at Etihad Rail look forward to enhancing cooperation, uniting efforts, and working together towards realising the vision of the UAE in accordance with the goals of the UAE National Railways Programme, which was launched under the Projects of the 50 to establish the basis for a new stage of sustainable economic growth for the country,” Sheikh Theyab said.

Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology; Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs; Jassim Al Zaabi, member of the Executive Council and Chairman of the Abu Dhabi Department of Finance; Mattar Mohammed Al Tayer, member of the board of directors of Etihad Rail and director-general and chairman of the board of executive directors of the Roads and Transport Authority (RTA) in Dubai, as well as members of Etihad Rail’s board of directors, the board of directors of FAB, and a number of officials from the UAE Ministry of Finance and the Department of Finance in Abu Dhabi, attended the signing ceremony.

Connecting 11 UAE cities

Etihad Rail’s passenger services will be connecting 11 UAE cities and locations from Al Sila to Fujairah. It is expected to serve more than 36.5 million passengers annually across the country by 2030.

At a speed of 200km per hour and with a capacity of 400 passengers per train, the passenger service will help reduce traffic and save time. Passengers will be able to commute between Abu Dhabi to Dubai in only 50 minutes, between Abu Dhabi and Fujairah in only 100 minutes, between Dubai and Fujairah in only 50 minutes, and between Abu Dhabi and Al Ruwais in only 70 minutes.

Atik Munshi, managing partner, FinExpertiza UAE, welcomed the move and said the rail service is a popular mode of travelling in many parts of the world.

“Though the emirate of Dubai is well covered with the metro network there is currently a gap in respect to passenger train connections with the other emirates. With the advent of Etihad passenger rail, this gap shall be filled to a great extent,” Munshi told Khaleej Times on Thursday.

Considering the time saving alone, he said it could become a very popular mode of transport for people, as Etihad train will take only 50 minutes to cover the distance between Dubai and Abu Dhabi.

“It is commendable that FAB is playing a key role in this development. In my view, some more infrastructural development by UAE to further extend the metro into other emirates would significantly reduce the traffic burden and help the environment considerably,” he said.

He said the UAE government is very keen and serious about Projects of the 50 and this is one more concrete development for the same.

National Railways Programme

Etihad Rail’s passenger service is one of the three strategic projects of the National Railways Programme, which was launched by the UAE government in December 2021.

The programme forms the largest land transport system in the UAE, which is set outline the future of the railway sector in the coming years, in addition to providing freight rail and integrated transportation services.

“As we look to the next 50 years of our nation’s journey, the UAE continues to lead the region in setting a bold and progressive vision for the future. FAB is integral to that journey and committed to driving economic growth and improving the quality of life for citizens and residents,” Sheikh Mohamed bin Saif said.

“Through our support for the Etihad Rail project, we are reinforcing the UAE’s position as a global and regional transport and logistics hub, leveraging our strategic geographic location to improve and reinforce our links with the rest of the world,” he said.

Global transport hub

Shadi Malak said Etihad Rail is an essential component of the Gulf Cooperation Council (GCC) rail network, and this agreement brings us one step closer towards realising our strategic goals of strengthening the UAE’s reputation as a regional and global transport hub.

“Through this agreement, we will move full steam ahead with our mission to provide passenger railway services, which will bolster public transport system in the UAE and the wider region,” Malak said.

— muzaffarrizvi@khaleejtimes.com