A new high-speed train in the Emirates is expected to reach speeds of 350kph. Victor Besa / The National
A new high-speed train in the Emirates is expected to reach speeds of 350kph. Victor Besa / The National
A new high-speed train in the Emirates is expected to reach speeds of 350kph. Victor Besa / The National
A new high-speed train in the Emirates is expected to reach speeds of 350kph. Victor Besa / The National

High-speed rail will be a game changer for the UAE


The National Editorial
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The E11 motorway, the UAE’s primary artery that links six of its seven emirates along the coast of the Arabian Gulf, was first conceived in 1968 – three years before the country’s founding. Upon consideration, that ought not to be a surprise. With the majority of its population centres straddling a single coastline, the Emirates is set up for efficient transport links in a way few other countries are. Now, with the emergence in the coming years of a passenger rail network that runs largely parallel to the E11 – and extends even further to the Emirate of Fujairah – efficient transport is set to take on an entirely new meaning for the UAE.

The newly announced crown jewel of the country’s Etihad Rail network is expected to be a high-speed line linking the two most populous cities, Dubai and Abu Dhabi, in a jaw-dropping 30 minutes. Whereas Etihad Rail’s ordinary passenger carriages will travel at up to 200kph, the high-speed service is expected to reach 350kph – on par with some of the fastest rail services on the planet. The company is also looking at higher capacity carriages, which could carry up to 600 passengers per journey, compared to the 400 typically accommodated by similar networks elsewhere.

One of the most striking features of the rail network, however, is its penetration into the heart of urban areas. The network will feature stations at Al Maktoum Airport in Dubai and Zayed International Airport in Abu Dhabi, but also in Abu Dhabi’s Yas Island, Saadiyat Island and Reem Island.

The need for passenger trains in the UAE is evident, and the demand is expected to grow. In recent years, traffic congestion has been an issue among residents and authorities, bringing road safety to the front of the public’s mind. The combined population of the two cities is more than 6 million people, and for many the 60-to-90-minute drive between them – whether for work, family visits or leisure – is a regular feature of UAE life.

The need for passenger trains in the UAE is evident, and the demand is expected to grow

At the same time, a recent population boom in both cities – fuelled by the country’s high economic growth rate, incomes and standard of living – has put many more cars on the road. The opening of new cultural amenities, particularly in Abu Dhabi, is also drawing in more tourists, increasing pressure on existing bus and taxi services.

As Sebastien Mangeant, executive director for high speed at Etihad Rail, told The National, the safety of rail is a significant part of the appeal. So is environmental sustainability. As the UAE moves towards its net-zero emissions goals, reducing the reliance on petrol cars will be critical.

That goes well beyond Etihad Rail. The dawn of passenger trains in the Emirates has been accompanied by a broader shift in the country towards embracing public transport. The Dubai Metro, which began operations in 2009, is gearing up for an expansion, with plans to double the number of stations and a third line scheduled to open in 2029. The emirate’s authorities have spoken of turning its urban area into a “20-minute city”, in which residents can meet their key daily needs in under half an hour without having to rely on cars.

Meanwhile, in Abu Dhabi, water taxis, tram-like electric buses and even autonomous vehicles have become increasingly popular ways to travel. Last year, Abu Dhabi Link, the city’s on-demand bus service, marked the completion of one million passenger trips since its launch in 2020.

Mobility is a fundamental part of the UAE’s culture – from its stature as a global hub to its thriving talent ecosystem at home, the country has long been focused on building connections and getting people where they need to go. Soon, they will get there even faster.

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

Updated: February 03, 2025, 1:14 PM