UAE gives green light to $1.3bn Etihad Rail loan

Rail company is building $11bn cross-country network to link UAE emirates

(Getty Images - for illustrative purposes only)

(Getty Images - for illustrative purposes only)

The United Arab Emirates' cabinet has approved plans for Etihad Rail, the developer of a railway network in the country, to borrow AED4.7bn ($1.28bn) to finance part of the construction, Dubai's ruler said on Sunday.

"We also approved during the meeting for Etihad Rail to borrow AED4.7bn to finance their new line to Al Ruwais," Sheikh Mohammed bin Rashid al-Maktoum, who is also UAE vice-president, posted on his official Twitter feed.

No other details were provided.

The rail network, which will cover 1,200 kilometres across the UAE and is projected to cost around $11bn, is being built in three stages. The line to Ruwais is part of the first phase.

In October, a contract worth 3.3-billion dirhams was awarded to an Italian-UAE joint venture, consisting of Italy's Saipem, Tecnimont and UAE-based Dodsal Engineering & Construction PTE Ltd, to design, procure and construct the first stage's infrastructure.

The first stage of the rail network will link the western region cities of Habshan and Ruwais by 2013 and join Shah and Habshan by 2014.

Phase two of the project will connect Abu Dhabi to Jebel Ali in Dubai while the third phase will connect the northern emirates.

Contracts for the second stage are earmarked to be awarded in the third-quarter of 2012, its chief executive said in November

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Soft money: will cash transactions soon be a thing of the past?

Soft money: will cash transactions soon be a thing of the past?

The rapid digitisation of banking in the UAE is enabling robots...

Oman gains breathing space with jumbo $5bn bond sale

Oman gains breathing space with jumbo $5bn bond sale

Order books for the issue totalled $20bn, showing that Oman can...

Most Discussed
sponsoredTracking