Logistics

The Etihad Rail has unveiled fresh details of its forthcoming passenger services. (Image source: Etihad Rail)

The Etihad Rail has unveiled fresh details of its forthcoming passenger services, offering insight into what travellers can expect when the UAE’s national rail network begins operations later this year.

The announcement follows confirmation of the country’s long-anticipated intercity passenger rail system, positioned as a modern alternative to driving between the Emirates.

The service has been designed to reflect changing lifestyles across the UAE, with a focus on reliability, comfort and sustainability.

Azza AlSuwaidi, deputy chief executive of Etihad Rail Mobility, said the next phase marks a shift from delivering infrastructure to shaping the overall travel experience.

She noted that the ambition is to create a service people actively choose because it integrates seamlessly into their daily routines.

For commuters, predictability is central to the offering. A consistent timetable and guaranteed seating are intended to provide peace of mind, enabling passengers to plan their schedules with greater certainty.

Quiet, calm onboard environments are also expected to allow travellers to use their journey time productively or as an opportunity to rest.

Key features

AlSuwaidi said reliability remains the defining factor for daily passengers, adding that the rail network is designed to give people “useful and usable time back” rather than adding to the pressures of the working day.

Business travellers are another key demographic. Trains will feature onboard Wi-Fi, power outlets at every seat and spacious interiors, creating what the operator describes as a professional and connected setting.

The aim is to allow passengers to work, prepare for meetings or unwind while travelling between the UAE’s major commercial hubs.

Families and leisure travellers are also being targeted as core users of the service. Dedicated family seating areas and generous luggage storage are intended to make weekend breaks, holidays and visits to relatives easier and less stressful.

By removing the demands of driving, such as navigating traffic and long hours at the wheel, the operator believes rail travel can help families spend more meaningful time together.

AlSuwaidi highlighted that 2026 has been designated the UAE Year of the Family, noting that rail journeys can offer uninterrupted shared time that is increasingly rare in modern life.

The passenger experience has also been developed to reflect a distinct Emirati identity. From station architecture to onboard design, the network aims to embody national values centred on safety, quality and hospitality.

Officials say international best practice and rigorous operational standards will underpin the system, reinforcing confidence among citizens and residents alike.

A key highlight of the company’s presence at LogiMAT will be the launch of LOXrail smartCURVE. (Image source: LOSYCO)

LOSYCO will present a new generation of rail-based intra-logistics and production transport systems at LogiMAT 2026, taking place in Stuttgart, Germany, from 24-26 March 2026.

Exhibiting at booth 7-F09, the German manufacturer will showcase developments extending its LOXrail system, designed to provide complete transport and handling solutions from a single source. The company specialises in heavy-duty rail-based logistics for industrial environments, with systems tailored to specific customer production processes.

LOXrail tracks, available in two sizes, are engineered to handle payloads of up to 60 tonnes and beyond. The system enables energy-efficient and cost-effective movement of heavy loads on customised trolleys across a wide range of manufacturing applications. These include the production of tools and agricultural machinery, wind turbine assembly and modular house prefabrication.

According to LOSYCO, even multi-tonne loads can be transported manually due to the low rolling resistance of the rail system. Alternatively, battery-powered drive units can be integrated, offering flexible propulsion options depending on operational requirements.

Show highlights

A key highlight of the company’s presence at LogiMAT will be the launch of LOXrail smartCURVE, described as the next stage in rail-based production logistics. The system combines the load-bearing strength of fixed intra-logistics rails with automation features commonly associated with automated guided vehicle (AGV) technology.

The smartCURVE solution has already been deployed at an automotive production plant, where it operates as a fully autonomous transport system. It comprises self-propelled transport trolleys equipped with sensor-based position detection, fail-safe low-latency Wi-Fi communication and inductive charging technology. The trolleys are capable of navigating factory layouts independently, transporting materials or assemblies between workstations, positioning themselves with precision and recharging without manual intervention.

LOSYCO said the system is designed to meet growing demand for smart factory solutions capable of handling heavy loads while integrating seamlessly into automated production environments.

In addition to its rail innovations, the company will display floor-level crossing systems, AllRounder steering platforms and material feeding and warehouse logistics solutions. These systems are intended to enhance flexibility and efficiency across manufacturing and storage operations.

Company representatives said they are looking forward to engaging with industry professionals at the Stuttgart exhibition, as manufacturers increasingly seek scalable and automated solutions for heavy-duty internal logistics.

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Drydocks World has become the latest member of the Maritime Emissions Reduction Centre (MERC), strengthening the consortium’s technical expertise and collaborative capacity in advancing lower-carbon shipping solutions.

MERC, co-founded by the Lloyd’s Register Maritime Decarbonisation Hub and leading shipowners including Capital Group, Navios Maritime Partners, Neda Maritime Agency, Star Bulk, and Thenamaris (Ships Management) Inc., focuses on practical decarbonisation strategies, emissions reduction technologies and industry-wide collaboration to accelerate the maritime sector’s transition towards sustainable operations.

Drydocks World, recognised for its expertise in complex ship repair and retrofit projects, will bring hands-on engineering experience to MERC’s initiatives. The company has extensive experience integrating advanced technologies on operating vessels, a capability that is increasingly critical as shipyards become central to deploying energy efficiency systems. MERC officials expect Drydocks World’s insights to inform how technologies are assessed, prioritised and implemented across different vessel types.

Nikos Kakalis, MERC Managing Director, said: “Drydocks World’s involvement provides an essential layer of applied engineering experience that complements MERC’s technical and analytical work. The organisation brings practical insight gained through decades of major retrofit projects. This expertise will help us understand not only what is technically possible, but what can be delivered efficiently and safely in a real shipyard environment. That combination of deep engineering knowledge and hands-on experience will help MERC ensure that emerging technologies can be installed safely, efficiently and commercially viably.”

The partnership comes amid growing R&D efforts within MERC, including studies on emerging efficiency technologies, integration of advanced systems on existing vessels, and expanded work in hydrodynamics, wind-assisted propulsion, auxiliary power alternatives, and data-driven operational optimisation.

Captain Rado Antolovic, PhD, CEO of Drydocks World, said: “Joining MERC allows us to contribute our engineering and retrofit experience to a collaborative effort focused on solutions the industry can implement. Decarbonising the existing fleet requires practical, evidence-based approaches, and we see real value in working alongside MERC’s partners to shape technologies and integration strategies that work across different vessel types.”

As a Centre Member, Drydocks World will provide yard-level insight to ensure decarbonisation solutions are technically feasible, scalable, and deliverable within operational and drydocking constraints, while aligning retrofit and conversion capabilities with evolving regulatory and shipowner requirements, particularly in Europe.

The UAE’s industrial and logistics sector maintained strong momentum in 2025, with rents rising across all major submarkets, as tight supply conditions continued to shape market performance, according to Knight Frank’s latest UAE Industrial and Logistics Report.

High occupancy levels and sustained rental growth were recorded nationwide, supported by solid economic fundamentals and expanding activity from both domestic and overseas occupiers, particularly logistics operators from mainland China. Investor appetite for industrial and logistics assets also remained firm, underpinning transaction volumes across the sector.

Faisal Durrani, Partner and Head of Research, MENA at Knight Frank, said: “Investor appetite remains firm and competition for institutional-grade stock continues to strengthen, placing further downward pressure on prime yields towards sub-8% territory. This should support capital values, even as rental growth moderates in parts of the market.”

He added that while new supply due in 2026 could begin widening the rental performance gap between older and higher-specification facilities, rental levels are expected to remain firm overall. “We expect the demand drivers that have underpinned rental growth over the past few years to be sustained this year,” Durrani said.

Dubai rents continue upward trend

Dubai’s industrial and logistics rents climbed further in 2025, driven by strong occupier demand and rising land and construction costs.

Al Quoz remained the city’s most expensive industrial submarket, with rents reaching AED 100 per sq ft, supported by its central location. Dubai Industrial City recorded the strongest annual rental growth at 32%, with rents rising to AED 58 per sq ft amid constrained high-quality supply and growing manufacturing demand. Dubai South followed, with rents increasing 25% year-on-year to AED 45–55 per sq ft.

Grade-A assets in Jebel Ali Free Zone (JAFZA) also posted annual increases of around 22%, reaching AED 40–45 per sq ft. Meanwhile, more established inland areas such as National Industries Park and Dubai Investment Park saw rental stabilisation, as relatively higher vacancy levels tempered upward pressure.

Maxim Talmatchi, Partner and Head of Industrial and Logistics, Middle East, said JAFZA presents further upside potential. “With its proximity to Jebel Ali Port and appeal to multinational occupiers, we anticipate scope for further rental growth,” he said.

Knight Frank is tracking 6.6 million sq ftof new supply scheduled for delivery in 2026, with additional completions expected in 2027 and 2028. However, Talmatchi noted that near-term supply will remain relatively constrained in prime locations.

“We expect Dubai’s industrial and logistics supply pipeline between 2026 and 2029 to be relatively stable in the near term, before rising sharply towards the end of our forecast period,” he said. “This new supply should offer some relief to occupiers in the form of stabilisation, or softening in rents in some locations, which could begin towards the end of 2026.”

Demand in 2025 was led by logistics and manufacturing occupiers, each accounting for 21% of total requirements, followed by retailers and traders at 14% and technology-focused occupiers at 12%. Mid-sized warehouses between 10,000 and 50,000 sq ft accounted for the majority of demand in the second half of the year.

Abu Dhabi market anchored by diversification strategy

Abu Dhabi continued to advance its industrial diversification strategy, with 33% of the UAE’s US$5bn in awarded industrial contracts last year located in the emirate.

Rental growth was more measured than in Dubai, with performance largely driven by asset quality and proximity to key transport corridors. The Abu Dhabi Airports Free Zone recorded the highest average rents at AED 625 per sq m, followed by KEZAD Mussafah (ICAD) and Al Falah at AED 550 per sqm, and Mussafah at AED 500 per sqm.

Talmatchi said: “Market conditions in Abu Dhabi are likely to remain broadly stable through 2026, with demand anchored around the ICAD and KEZAD clusters. A disciplined approach to land release and development remains a key stabilising influence, restricting excess supply and limiting volatility in rental performance.”

Looking ahead, project completions in Abu Dhabi are expected to exceed US$1bn in Q1 2026, with another major peak forecast in 2029.

The growth trajectory is underpinned by the Abu Dhabi Industrial Strategy, which aims to more than double the emirate’s manufacturing sector to AED 172bn by 2031, with a focus on foreign direct investment and priority industries including chemicals, machinery, electronics and pharmaceuticals.

Durrani said the UAE’s industrial and logistics sector is entering a more mature phase. “Performance will increasingly be determined at the asset level. Location, specification, tenant quality and active management will matter more than scale alone,” he said. “The medium- to long-term outlook remains positive, with occupiers expected to continue gravitating towards high-specification and quality assets.”