The UAE federal government, in partnership with the government of Abu Dhabi, has announced the signing of a new contract for establishing the Etihad Trains Company.
Under the agreement, the company will be set up with AED 1 billion of capital, 70 per cent of which will be paid by the government of Abu Dhabi with the federal government making up the remaining 30 percent, WAM News Agency reported.
According to the news source, Etihad Trains Company will be responsible for investing in a countrywide rail network that would link all seven emirates of the UAE.
Sheikh Hamdan Bin Mubarak, chairman of the board at the UAE National Transport Authority, said the company was being set up as part of the "UAE Vision 2021", a strategic government plan aimed at achieving "a highly competitive national economy".
"One of the strategic goals of National Transport Authority, he said, is bolstering railway industry and achieving a safe and sustainable transport system," reported WAM.