Etihad Rail’s super-fast service tracked by investors

• Dubai-Abu Dhabi service in 2026
• Possible boost for Sharjah property
• Parking operators may benefit

The UAE’s Etihad Rail is due to start passenger services next year, promising to slash travel time between Dubai and Abu Dhabi by as much as 40 percent.

Not only could this reshape the daily commute but it could also shift the investment outlook for a clutch of transport-focused companies listed on local bourses.

With speeds of up to 200 kilometres per hour and a 400-passenger capacity, the inter-emirate rail line is expected to cut the journey between the UAE’s two biggest  cities to just under one hour.

Four stations have been confirmed so far — in Abu Dhabi, Dubai, Sharjah and Fujairah — with a wider network eventually linking 11 towns and regions across the country.

The state-backed project aims to carry 36.5 million passengers annually by 2030, offering a long-awaited alternative to increasingly congested roads, where peak-hour traffic on the Dubai-to-Sharjah route can stretch beyond two hours.

Beyond its implications for commuters, the rail line could influence investor sentiment in related stocks. 

Shares of Parkin Co., the Dubai government’s recently listed parking management operator, have surged 27 percent year-to-date and may rise further amid expectations of increased demand near rail stations.

“It is likely that parking spaces will be made available near Etihad Rail stations, which will be managed by Parkin,” said Hunaina Banatwala, head of trading at Cross-Alpha Investment Advisors.

A note from Bahrain’s SICO Bank highlighted that Parkin recorded 132 million parking transactions last year. 

The rail’s targeted ridership would represent about a quarter of that volume. However, Indarpreet Singh, assistant vice president at SICO cautioned against over-optimism.

Etihad Rail

“We note a large part of car users are likely to also have office-provided parking,” he said, tempering expectations of a one-to-one correlation between rail ridership and parking demand.

Dubai Taxi Corporation (DTC), meanwhile, has seen its shares fall over 10 percent this year. 

Still, analysts see a potential pivot. The company logged nearly 48 million trips last year.

“Dubai Taxi could be a net beneficiary of the shift from road to rail, potentially providing first- and last-mile services to passengers,” Singh said.

The picture is less rosy for Salik Co., Dubai’s road toll operator, which could face short-term headwinds. 

Although its shares are up 6 percent this year, analysts warn that the rail launch may divert traffic — and toll revenues — away from its network.

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“Some commuters, including tourists, who were earlier travelling by road are likely to opt for Etihad Rail,” said Banatwala. Still, population growth should support road usage and vehicle registrations.

Beyond transport, the rail project could catalyse a shift in residential patterns — and real estate valuations. 

With housing costs rising in Dubai and Abu Dhabi, analysts say the new line could make more affordable Sharjah a more attractive alternative for residents and investors alike.

“The completion of the Etihad Rail passenger network could add new impetus for price growth, and help attract further investment into Sharjah’s real estate market,” said Matthew Green, head of research at CBRE Mena.