Etihad Rail finance approved
Green light for loan to build first section of UAE's first freight railway
Etihad Rail’s bid to borrow Dh4.7 billion (US$1.28bn) to finance part of the construction of a UAE-wide rail network has been approved.
The bank loan will enable Etihad Rail to finance its Shah-Habshan-Al Ruwais 1,200km section of the first railway across all the seven emirates.
The network, due for completion in 2018, aims to support the country’s economic development and improve the investment potential of the UAE by offering an alternative transport network.
Etihad Rail, which is 70% owned by the government of Abu Dhabi and 30% by the federal government, expects to transport 50 million tonnes of cargo during the first phase.
The locomotives will run on diesel, but there will be provision for electrification if traffic demands it. Freight trains will run at speeds of 120kph and passenger trains at up to 200kph.
In October, Etihad Rail awarded the Dh3.3 billion civil and track works contract for the first stage of the railway network, that will link the western region cities of Habshan and Ruwais by 2013 and then Shah and Habshan by 2014.
The Etihad Rail network is poised to connect the emirates and link the UAE to Saudi Arabia in the west and to Oman in the east.
The project will be completed in three stages: phase I incorporates the Shah-Habshan-Ruwais route; phase 2 involves the construction of the remainder of the Abu Dhabi Emirate Network and a connection to Dubai, covering areas such as Mussaffah and the Khalifa and Jebel Ali ports.
The final phase will cover the rest of the network in Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah.
The bank loan will enable Etihad Rail to finance its Shah-Habshan-Al Ruwais 1,200km section of the first railway across all the seven emirates.
The network, due for completion in 2018, aims to support the country’s economic development and improve the investment potential of the UAE by offering an alternative transport network.
Etihad Rail, which is 70% owned by the government of Abu Dhabi and 30% by the federal government, expects to transport 50 million tonnes of cargo during the first phase.
The locomotives will run on diesel, but there will be provision for electrification if traffic demands it. Freight trains will run at speeds of 120kph and passenger trains at up to 200kph.
In October, Etihad Rail awarded the Dh3.3 billion civil and track works contract for the first stage of the railway network, that will link the western region cities of Habshan and Ruwais by 2013 and then Shah and Habshan by 2014.
The Etihad Rail network is poised to connect the emirates and link the UAE to Saudi Arabia in the west and to Oman in the east.
The project will be completed in three stages: phase I incorporates the Shah-Habshan-Ruwais route; phase 2 involves the construction of the remainder of the Abu Dhabi Emirate Network and a connection to Dubai, covering areas such as Mussaffah and the Khalifa and Jebel Ali ports.
The final phase will cover the rest of the network in Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah.
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