© Etihad Rail
© Etihad Rail

Etihad Rail suspends tendering for second phase of railway

8 February 2016

UAE rail network operator and developer Etihad Rail has said it had suspended the tendering process for stage two of the country’s rail project.

The stage two connection of the network would have connected Abu Dhabi’s Saudi border at Ghweifat and its Omani border in Al Ain to Musaffah with the Khalifa and Jebel Ali ports in Dubai.

The move comes a week after the company was reported as saying it planned to cut 30 per cent of its workforce. It did not specify how many employees would be made redundant.

Low oil prices that are set to plummet further once Iran begins re-exporting oil in the wake of the lifting of sanctions have hit the UAE economy hard.

However the first phase of the network, which links the important gas fields at Shah and the oil and gas fields at Habshan to the port of Ruwais, is still going ahead.

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