Etihad Rail lays tracks for economic growth, new investment opportunities
MAYS IBRAHIM (ABU DHABI)With its freight network now fully operational across all seven emirates and high-speed passenger service on track for launch by 2026, experts say Etihad Rail network is set to accelerate the UAE's post-oil growth and unlock fresh investment opportunities. Etihad Rail's freight network, launched in 2023, spans 900km from the Saudi border at Ghuweifat to the eastern port city of Fujairah.It connects key industrial and maritime nodes including Khalifa Port in Abu Dhabi, Jebel Ali in Dubai, and the Port of Fujairah, enabling a faster and more sustainable movement of goods across the country.The Etihad Rail passenger service will launch in 2026, linking 11 cities and regions across the UAE, including major hubs like Abu Dhabi, Dubai, Sharjah, and Fujairah. Trains will travel up to 200kmph, with a dedicated high-speed line between Abu Dhabi and Dubai expected to cut journey times to just 30 minutes.The UAE's transport and storage sector has played a key role in driving overall GDP growth in recent years, expanding by 9.6% in the past year, according to Daniel Richards, MENA Economist at Emirates NBD.
'On the back of this growth, it accounted for 5.2% of total output last year, up from 4.2% in 2021. Much of this is on the back of aviation but all transport modes have contributed, and the launch of the completed rail service will provide another major boost to the sector. It will also help facilitate growth in the broader economy,' he told Aletihad . The enhanced freight transport capabilities offered by the railway will also bolster the UAE's long-term industrial development goals, including Operation 300bn, which aims to increase the industrial sector's economic contribution to Dh300 billion by 2031, Richards added. 'Phase one of the railway has already contributed to the expansion of ADNOC's operations at the Shah sour gas field. An effective rail network, well connected to the country's bulk cargo shipping facilities and coastal processing plants, will support the ongoing growth in the heavy industry. The intermodal connectivity can also support the planned development of domestic manufacturing,' he said. Continued investment in the UAE's infrastructure sector will reinforce its appeal as a prime destination for investment and business, added Richards.'The fully launched rail network should encourage greater private and foreign investment in the country. It also adds to the attractiveness of the existing warehousing facilities and transshipment ports like Jebel Ali,' he said. The UAE currently outperforms its GCC neighbours on nearly all transport metrics measured by the World Economic Forum, according to Richards. 'As the sector develops at a faster rate, the nascent rail network will also help bolster the UAE's position relative to its regional peers as regional competition in some areas intensifies,' he said.
Real Estate Ripple Effect Investors are already eyeing the real estate potential emerging around the railway. Martin Kocher, a partner at Abu Dhabi-based Gravity Power Management Consultancies, noted that the improved connectivity will significantly influence property appreciation and stimulate investor interest, especially in areas that have historically been underserved or considered remote.
'Multiple studies confirm a clear correlation between high-speed rail (HSR) access and rising asset values,' he told Aletihad . 'In Fujairah specifically, I anticipate a 15% increase in property values within the city. All eyes will be on Al Hilal City, the flagship master-planned community anchored by the Etihad Rail station in Fujairah.'This rising attractiveness will also draw in local capital for property upgrades, generating jobs and stimulating grassroots economic activity, Kocher added. 'In parallel, smaller cities will benefit from increased domestic tourism, giving them a platform to showcase their unique identity. This not only drives foot traffic and spending but also strengthens appreciation for Emirati culture and national unity.'Kocher also predicted a healthy rebalancing of property prices across the country.'With improved inter-emirate mobility, citizens and residents now have the freedom to live in one emirate and work in another. This shift will allow more families to align their home location with lifestyle preferences and family priorities,' he explained. To maximise the benefits, Kocher advised developers to focus on high-density, mixed-use developments near stations that combine housing, retail, and public services.
'Incorporating retail outlets or a small mall will create healthy commercial diversity and support local businesses,' he said. 'A strong residential offering and a thriving small business ecosystem will continue to reinforce each of the emirates' appeal to both residents and long-term investors.'
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Al Etihad
6 hours ago
- Al Etihad
Etihad Rail lays tracks for economic growth, new investment opportunities
6 Aug 2025 00:03 MAYS IBRAHIM (ABU DHABI)With its freight network now fully operational across all seven emirates and high-speed passenger service on track for launch by 2026, experts say Etihad Rail network is set to accelerate the UAE's post-oil growth and unlock fresh investment opportunities. Etihad Rail's freight network, launched in 2023, spans 900km from the Saudi border at Ghuweifat to the eastern port city of connects key industrial and maritime nodes including Khalifa Port in Abu Dhabi, Jebel Ali in Dubai, and the Port of Fujairah, enabling a faster and more sustainable movement of goods across the Etihad Rail passenger service will launch in 2026, linking 11 cities and regions across the UAE, including major hubs like Abu Dhabi, Dubai, Sharjah, and Fujairah. Trains will travel up to 200kmph, with a dedicated high-speed line between Abu Dhabi and Dubai expected to cut journey times to just 30 UAE's transport and storage sector has played a key role in driving overall GDP growth in recent years, expanding by 9.6% in the past year, according to Daniel Richards, MENA Economist at Emirates NBD. 'On the back of this growth, it accounted for 5.2% of total output last year, up from 4.2% in 2021. Much of this is on the back of aviation but all transport modes have contributed, and the launch of the completed rail service will provide another major boost to the sector. It will also help facilitate growth in the broader economy,' he told Aletihad . The enhanced freight transport capabilities offered by the railway will also bolster the UAE's long-term industrial development goals, including Operation 300bn, which aims to increase the industrial sector's economic contribution to Dh300 billion by 2031, Richards added. 'Phase one of the railway has already contributed to the expansion of ADNOC's operations at the Shah sour gas field. An effective rail network, well connected to the country's bulk cargo shipping facilities and coastal processing plants, will support the ongoing growth in the heavy industry. The intermodal connectivity can also support the planned development of domestic manufacturing,' he said. Continued investment in the UAE's infrastructure sector will reinforce its appeal as a prime destination for investment and business, added Richards.'The fully launched rail network should encourage greater private and foreign investment in the country. It also adds to the attractiveness of the existing warehousing facilities and transshipment ports like Jebel Ali,' he said. The UAE currently outperforms its GCC neighbours on nearly all transport metrics measured by the World Economic Forum, according to Richards. 'As the sector develops at a faster rate, the nascent rail network will also help bolster the UAE's position relative to its regional peers as regional competition in some areas intensifies,' he said. Real Estate Ripple Effect Investors are already eyeing the real estate potential emerging around the railway. Martin Kocher, a partner at Abu Dhabi-based Gravity Power Management Consultancies, noted that the improved connectivity will significantly influence property appreciation and stimulate investor interest, especially in areas that have historically been underserved or considered remote. 'Multiple studies confirm a clear correlation between high-speed rail (HSR) access and rising asset values,' he told Aletihad . 'In Fujairah specifically, I anticipate a 15% increase in property values within the city. All eyes will be on Al Hilal City, the flagship master-planned community anchored by the Etihad Rail station in Fujairah.'This rising attractiveness will also draw in local capital for property upgrades, generating jobs and stimulating grassroots economic activity, Kocher added. 'In parallel, smaller cities will benefit from increased domestic tourism, giving them a platform to showcase their unique identity. This not only drives foot traffic and spending but also strengthens appreciation for Emirati culture and national unity.'Kocher also predicted a healthy rebalancing of property prices across the country.'With improved inter-emirate mobility, citizens and residents now have the freedom to live in one emirate and work in another. This shift will allow more families to align their home location with lifestyle preferences and family priorities,' he explained. To maximise the benefits, Kocher advised developers to focus on high-density, mixed-use developments near stations that combine housing, retail, and public services. 'Incorporating retail outlets or a small mall will create healthy commercial diversity and support local businesses,' he said. 'A strong residential offering and a thriving small business ecosystem will continue to reinforce each of the emirates' appeal to both residents and long-term investors.'
Al Etihad
7 hours ago
- Al Etihad
Etihad Rail sparks high hopes for UAE's inter-emirate commuters
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Al Etihad
12 hours ago
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Lower interest rates spur strong loan growth at UAE banks amid Gulf-wide lending boom
5 Aug 2025 18:36 A. SREENIVASA REDDY (ABU DHABI)Leading UAE banks posted robust loan growth and strong second-quarter profits in 2025, capitalising on a lower interest rate environment across the Gulf, according to a report by S&P Global Market Intelligence. The favourable monetary conditions helped stimulate lending across the GCC, but UAE lenders, particularly First Abu Dhabi Bank (FAB) and Emirates NBD, stood out for their growth momentum and upgraded full-year the country's largest bank by assets, reported a 10.71% year-on-year increase in loan growth, accelerating from 6.34% in the same period last year. The performance prompted FAB to upgrade its full-year loan growth guidance to the low double-digit range, from an earlier single-digit outlook. The bank also posted a record net profit of $1.50 billion in the second quarter, marking a 29% jump from $1.16 billion a year NBD, another top-tier UAE bank, reported even higher loan growth at 14.28%, also revising its full-year guidance upward to the low double digits. Its net interest income (NII) grew 6% year-on-year to $2.28 billion. However, the bank's net interest margin (NIM) narrowed by 22 basis points to 3.36%, largely due to pressure from its Turkish subsidiary, DenizBank. A $31 million impairment charge dragged Emirates NBD's quarterly profit down by 10% compared to a year earlier, when the bank had posted a reversal of $374 million in positive loan growth trend was mirrored across other Gulf markets, with Saudi Arabia's Al Rajhi Bank reporting the sharpest year-on-year rise among major regional lenders. Al Rajhi's loan book expanded by 19.31%, up from 7.37% a year earlier. The bank also posted a 25% jump in NII to $1.95 billion, supporting a 31% rise in net profit to $1.64 billion for the National Bank (QNB) posted 9.38% loan growth and revised its full-year loan guidance to 7%–9%, up from 5%–7%. Almost half the growth stemmed from Turkey, according to Durraiz Khan, senior vice president for group financial consolidation. QNB's NII rose to $2.34 billion, up from $2.12 billion a year ago, although margin pressures persisted due to high rates in Turkey. Khan noted that a projected rate cut in Turkey could aid NIM recovery in the second half of the National Bank also recorded solid loan growth, rising to 12.21% from 10.25% in the prior-year UAE-based banks, such as Abu Dhabi Commercial Bank (ADCB) and Dubai Islamic Bank (DIB), also saw steady growth. ADCB reported high single-digit loan growth and continued to expand its retail and SME lending book. DIB maintained its strong performance in corporate and Islamic finance segments, benefitting from improved liquidity and lower funding costs. S&P analysts said they expect loan growth momentum to continue in the UAE, Saudi Arabia, and Qatar, supported by anticipated US Federal Reserve rate cuts later in the year, which Gulf central banks are expected to follow. As rates soften further, banks in the region—particularly those with diversified portfolios and strong funding bases—are poised to benefit from increased credit demand and margin stabilisation.
