The CEO of Etihad Rail Shadi Malak and the CEO of First Abu Dhabi Bank (FAB) Hana Al Rostamani signed a AED 1.99 billion (USD 541.89 million) financing agreement for rail passenger transport services.
“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,” the CEO of Etihad Rail said.
The agreement 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, as part of the agreement.
Company’s passenger services will be the first of its kind, connecting the cities and regions of the UAE. The project is one of the three strategic programmes of the national rail strategy which was launched by the UAE government in December 2021. The vision 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.
With the launch of the rail passenger transport services, the passenger trains will strengthen connectivity between the UAE by connecting 11 cities and locations in the country from Al Sila to Fujairah. Travelling at a speed of 200 km/h, with a capacity of 400 passengers per train, the number of passengers is expected to increase to reach more than 36.5 million passengers annually across the country by 2030. 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.
“By connecting the United Arab Emirates through a fully integrated rail network, Etihad Rail will bring significant economic and social benefits to the businesses and communities it serves, empowering future growth and providing opportunities for all. FAB is proud to support Etihad Rail in fulfilling this important project which will drive forward economic development for our nation,” the CEO of First Abu Dhabi Bank said at the signing ceremony.
Etihad Rail is implementing the Stage Two of country’s rail network which is 70% completed. The Stage One of the Network has been operational since 2016.
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