President approves Federal Law decree for setting up “Etihad Trains Company”

Abu Dhabi, Jul. 8, 2009 President H.H. Sheikh Khalifa bin Zayed Al Nahyan has approved a federal law decree for setting up a railways company, which shall be an independent corporate body, involved in the transporting of goods and passengers, and shall operate under the name “Etihad Trains Company”.

Sheikh Khalifa approved the cabinet proposed bill for setting up the company with a total capital of AED 1 billion. The company, which shall be fully owned by the federal government, shall engage basically in the owning, leasing, renting, purchasing and selling of trains, as well as in investing in the transporting of passengers and goods and all businesses related to modern railway network, which shall link together all parts of the country.

The company shall be run by a board of not less than seven members, including the board chairman and his deputy, both shall be appointed by a federal decree.

According to the decree, the “Etihad Trains Company” shall, among other objectives, strive to link the rural areas with the urban areas of the country to accelerate growth and development in the country and facilitate easy, cheap and safe means of transport of passengers and goods, to minimise environmental pollution stemming from carbon combustion from cars on the roads and highways.

The Company shall operate its services for fees, which shall be determined by its board, in accordance with the company’s byelaws and rules, and in coordination with the concerned bodies.

The company shall also operate through its subsidiaries, which shall be fully or partially owned by the “Etihad Train Company”, or through the granting of rights to other companies. This shall be done in accordance with the proposal of the “Etihad Trains Company” board and the approval of the UAE cabinet.