Invest GCC 2024 January Issue 2

now complete with commercial operations in use. The first passenger train station will be built in Sakamkam, Fujairah, at the heart of Fujairah city. Once open for travel, the number of passengers is expected to reach 36.5 million annually. Mega project Established in June 2009 under Federal Law No. 2, this mega development is set to augment growth, construction, and operation of the national freight and passenger railway network, not only I the UAE but the GCC region also. Etihad Rail is set to diversify economic growth through strategic initiatives. The railway network will use standard gauge, mainly double track, and its freight trains will reach speeds up to 120km/h (75mph), while its passenger trains will reach speeds up to 200km/h (120mph). Aimed to accelerate the UAE’s ambitious goals, Etihad Rail is a key economic project as part of the Abu Dhabi Economic Vision 2030 and UAE Vision 2021 – an initiative which outlines a roadmap for Abu Dhabi with an aim to improve the region’s overall development and increase GDP from non-oil sectors to over 60% by 2030. Economic Impact on the UAE and GCC As the epicentre of Etihad Rail project, the UAE will experience some of the most direct and significant benefits. The railway network will connect the emirates seamlessly, promoting regional integration, reducing transportation costs, creating jobs, and supporting economic diversification. UAE’s ports, industries, and logistics hubs will experience increased efficiency, contributing to its role as a regional

C haracterized by rapid economic growth, the Middle East region is set to achieve a ground-breaking milestone with the completion of the Etihad Rail project. Construction on the Etihad Rail project is on fast track, although it has started a test run on part of the 1,200km railway line. This visionary undertaking, which connects the seven emirates of the UAE and extends into Saudi Arabia, Oman and the wider Gulf Cooperation Council region including Kuwait, and Bahrain, promises to be a game-changer for the local and regional economies. By injecting an estimated Dh200 billion into the economy over the next half- century, Etihad Rail is poised to revolutionise cargo, freight, and passenger travel, solidifying its place as a catalyst for growth and integration. The first stage of the railway network was finished in 2016 and construction of the second part started in 2020. Spanning the UAE, the track is now able to transport goods from Al Faya to the rest of the country. When the passenger train service is complete, it will connect 11 cities and regions across the country. The Etihad Rail website says construction of the UAE’s National Rail Network is The railway network will connect the emirates seamlessly, promoting regional integration, reducing transportation costs, creating jobs, and supporting economic diversification ETIHAD RAIL: A giant leap towards economic integration in the Gulf region

By injecting an estimated Dh200 billion into the economy over the next half-century, Etihad Rail is poised to revolutionise cargo, freight, and passenger travel, solidifying its place as a catalyst for growth and integration

18 Federation of GCC Chambers

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