The transport sector in Abu Dhabi is developing at a rapid pace. Most notably, stage two of the Etihad Rail network project has been completed, and a new terminal is expected to open at Abu Dhabi International Airport (AUH) before the end of 2023. Transport firms from air to ports have posted large gains, with tourism and commercial activity resuming across the emirate after the Covid-19 pandemic.
Structure & Oversight
The Abu Dhabi Department of Municipalities and Transport (DMT) administers a broad range of government services, such as urban planning, civil aviation, and land and marine transport. The DMT’s structure includes the municipal authorities of Abu Dhabi, Al Ain and Al Dhafra; the Integrated Transport Centre (ITC), which is responsible for public transport, parking spaces and traffic monitoring; as well as its transport subdivision, which administers the Surface Transport Master Plan (STMP), which was first unveiled in 2009.
A number of other emirate-level entities play a key role in overseeing various aspects of the transport sector, such as Saaed, the road traffic safety services organisation of the federal Ministry of Interior, which works with Abu Dhabi Police to enforce, monitor and improve road safety, as well as ensure smooth traffic and parking management.
In terms of aviation, Abu Dhabi Airports Company (ADAC) is responsible for the administration of key airports, including AUH, Al Ain International Airport (AAN) and Al Bateen Executive Airport (AZI), as well as two domestic airports – Dalma Airport located on Dalma Island and Sir Bani Yas Airport on Sir Bani Yas Island. ADAC was created in March 2006 to assume the responsibilities previously undertaken by the Department of Civil Aviation.
Abu Dhabi’s rail network is managed by Etihad Rail, which is 70% owned by the Abu Dhabi government, with the federal government owning the remaining equity. The network has undergone significant expansion in recent years, boosting rail connectivity in the emirate and throughout the UAE.
AD Ports Group was created by Emiri decree in 2006 to oversee maritime transport activity. It owns and operates over 30 ports and terminals, including Khalifa Port, the emirate’s international deepwater seaport. It also runs Khalifa Economic Zone Abu Dhabi (KEZAD), a 550-sq-km free zone adjacent to Khalifa Port that serves as the emirate’s centre for manufacturing, trade and logistics (see Industry & Retail chapter).
In March 2023 Sheikh Mohamed bin Zayed Al Nahyan, president of the UAE and ruler of Abu Dhabi, issued a law establishing the Abu Dhabi Transport Company to develop integrated transport infrastructure in both urban and rural areas. The company reports to the Supreme Council for Financial and Economic Affairs, which oversees Abu Dhabi’s economic trajectory, establishing public policy on matters of finance, investment, petroleum and natural resources. In March 2023, it was announced that the Integrated Transport Centre would soon handle Abu Dhabi driver and vehicle licensing activities, rather than Abu Dhabi Police, in a move to create a unified and integrated transport licensing system throughout the emirate (see analysis).
Urban Transport
The urban transport system in Abu Dhabi is highly modernised, with green investment and smart technology playing a large role in expansion plans. One of the cornerstones of the system is the new Abu Dhabi Express bus servicing key areas of Abu Dhabi City. Launched in its first phase in March 2022, it has proven popular among residents. The service is a partnership between the ITC and private operators, in which the time schedule of its direct, non-stop routes depends on the volume of demand and the needs of passengers.
Between March and June 2022, 38 private buses moved more than 70,000 passengers over 14,500 trips. Due to demand, the ITC announced in June 2022 that it was implementing phase two, adding new routes between Abu Dhabi City, Mirfa City and Madinat Zayed, among others. Subsequent phases will extend services to other areas of the capital and its suburbs, as well as Al Ain City and the Al Dhafra Region.
In April 2023 the ITC launched a bus-on-demand service in Khalifa after successful operations in Shahama, Yas Island and Saadiyat Island. Known as Abu Dhabi Link, the service allows riders to request on-demand transport within a specific area, taking them from various locations to the destination of their choice within the area. After downloading the Abu Dhabi Link app, users specify current and target destinations and then follow a route to the nearest available bus. As of April 2023 Abu Dhabi Link had been downloaded over 50,000 times.
In terms of inter-emirate bus links, a shuttle bus service was launched between AUH and Dubai’s Ibn Battuta Bus Station in response to demand in 2022. Enhancing urban transport options is in line with the emirate’s emissions targets. “With a vision for net-zero emissions, the goal is to decarbonise public transport without passing the sustainability costs onto consumers,” Abdullah Mohammed Maatouq Al Marzouqi, director-general of the ITC, told OBG.
Smart Transport
In another example of the ITC’s efforts to develop a smarter transport system, it launched the Smart Mobility Project in collaboration with Bayanat during the November 2022 Formula 1 Etihad Airways Abu Dhabi Grand Prix. The following month, an autonomous rapid transit (ART) system was launched on Yas Island as part of the project. In its first phase, ART provided services to Yas Island’s main tourist destinations and commercial centres. The smart mobility system on the island features a fleet of 17 vehicles, including self-driving taxis called TXAI. Users can download the TXAI app to book rides, with 2700 people using the service in the phase-one trial.
In March 2022 the DMT announced that it was partnering with Bayanat – a company belonging to local AI and cloud computing firm G42 – to test the use of self-driving taxis. The ITC is responsible for establishing the necessary infrastructure for the vehicles, while Bayanat is in charge of safety testing. The emirate could gain an early-mover advantage in the use of autonomous vehicles, with the next stage set to include more than 10 autonomous vehicles.
Sustainability
The emirate is aiming to boost electric vehicle (EV) adoption, since car usage accounts for about 15% of the UAE’s carbon emissions, as reported by global professional services firm KPMG. In March 2023 the ITC partnered with public taxi franchisee Arabia Taxi to deploy Tesla EVs as taxis in the emirate, aligning with the UAE’s national goal of having EVs make up at least 50% of the country’s vehicles by 2050.
According to data from the ITC, some 78% of the emirate’s 6390 taxis are already low-emission vehicles. However, there is room for further improvement in boosting EV adoption. “The challenge with EVs lies in charging infrastructure and the time it takes to charge the vehicles. Further investment and innovation in these areas will be critical to the growth and adoption of electric mobility,” Khalid Al Shemeli, CEO of Emirates Driving Company, told OBG.
Another way that the authorities are seeking to reduce road traffic and emissions is through the use of water taxis. Abu Dhabi Maritime – established by the DMT and AD Ports Group to oversee Abu Dhabi’s waterways – launched a water taxi service in November 2022, initially serving Yas Bay, Yas Marina and Al Bandar, with further stops to follow.
Abu Dhabi is also encouraging bicycle use by constructing tracks and hosting international competitions. Hundreds of kilometres of cycling tracks are under development to provide residents with dedicated cycling lanes. In 2021 Abu Dhabi City was the first city in the Middle East or Asia to be awarded Bike City status by the Union Cycliste Internationale (UCI). and Abu Dhabi City hosted the UCI Urban Cycling World Championships in 2022 and will do so again in 2024.
Safety Initiatives
Transport regulators have introduced several safety reforms in recent years. Starting in April 2023, Abu Dhabi implemented a minimum speed of 120 km per hour on the two left lanes of Sheikh Mohammed bin Rashid Road, a major motorway in the emirate. The maximum speed will be 140 km per hour and no minimum speed will be specified in the slower third lane. Research by Abu Dhabi Police found that around 78% of Abu Dhabi residents supported the change.
In May 2022 Abu Dhabi Police reported that the deployment of smart technologies was helping to improve road safety in the emirate. According to officials, the use of artificial intelligence (AI) had reduced accidents and improved commute times. Additionally, drones are being used to monitor traffic flows, detect congestion and direct patrols.
One notable smart system is SCOOT, which is a central traffic control system with sensors measuring the volume of traffic and speed of vehicles to improve flow at main junctions. Overall, road deaths in the UAE fell by two-thirds between 2010 and 2019 as a result of traffic regulations, improved vehicle safety and awareness campaigns.
Urban Roads
Abu Dhabi’s urban road network is controlled by Abu Dhabi Traffic Management Centre (TMC). The TMC uses an incident management system to respond promptly to incidents, and can control traffic signals across the urban network to redirect the flow of vehicles and minimise the impact of lane closures or accidents in tunnels. It also uses intelligent systems and digital twin technology to collect, analyse, model and predict optimum traffic flows in response to any given set of circumstances in the road network. Variable-message traffic signs and the Darbi app then work to pass information from the system on to road users. The Darbi app and portal run by the ITC also give travellers access to up-to-date information on a range of other urban transport services, including public bus and ferry routes, taxi hailing, bicycle stations, parking facilities and carpooling arrangements.
Abu Dhabi City has received international recognition for its transport system. In May 2023 it was named the smartest city in the MENA region and 13th in the world by the IMD Smart City Index, with special emphasis on its modern transport infrastructure. In 2021 the city was highlighted by the TomTom Traffic Index as the capital with the least traffic congestion.
According to Statistics Centre – Abu Dhabi (SCAD), the transport and storage sector recorded a growth rate of 13.6% year-on-year (y-o-y) in the first quarter of 2023, with its quarterly added value approaching Dh5bn ($1.5bn), alongside a 6.1% increase in Abu Dhabi’s non-oil GDP over the same period. On the national level, the transport and storage sector saw the highest growth rate in the first quarter of 2023, at approximately 11% y-o-y, contributing Dh21.8bn ($5.9bn) to the UAE’s economy.
Roads & Bridges
Recent years have witnessed significant activity in road and bridge construction in Abu Dhabi. In February 2023 the emirate inaugurated a new 11-km bridge to connect Al Reem Island to Sheikh Zayed bin Sultan Street in Abu Dhabi City, crossing the Umm Lafina Islands. Developed by Aldar Properties – Abu Dhabi’s largest real estate company – and the DMT, the six-lane motorway will feature walking paths and cycling facilities. It can accommodate up to 12,000 vehicles per hour.
The bridge is the first phase of the Mid-Island Parkway project that will link Al Reem Island, Saadiyat Island, Al Raha Beach and Khalifa City. The project is expected to be completed in 2028, and the developers have implemented sustainability measures to preserve the natural environment. The parkway will also feature bike lanes and walking trails.
In April 2023 another bridge was opened that connects Bani Yas East and Bani Yas West on Al Ain Road. The project is aimed at improving traffic flows to and from the area, and the travel time between Bani Yas East and Bani Yas West has been shortened from 11 to three minutes. Additionally, there is ongoing infrastructure enhancement to expand the existing Al Saada Bridge on Sheikh Zayed Street from four lanes to five lanes in both directions to reduce congestion.
The Mina Tunnel project, a vital part of Abu Dhabi’s Min Zayed Road Network development, was opened to traffic in August 2023. This project connects Sheikh Khalifa Bridge to Sheikh Zayed Tunnel and Corniche Road in both directions through a network of tunnels. Its benefits include reducing traffic congestion, enhancing connectivity to Mina Zayed Port, and reducing travel times and air pollution.
According to German data platform Statista, the total length of roads in Abu Dhabi was 26,997 km in 2019, the most recent year for which statistics were published. The road length by region was 15,316 km in the Abu Dhabi Region, 7916 km in the Al Ain Region and 3765 km in the Al Dhafra Region.
Rail
Etihad Rail continues to make significant progress on its multi-year expansion project. Construction of the national rail network began in 2009, and stage one – a 266-km line – became fully operational in January 2016. It has the capacity to transport up to 22,000 tonnes of granulated sulphur per day from the Shah and Habshan gas fields to industrial facilities at the Port of Ruwais on the Gulf.
In November 2018 the UAE Ministry of Finance and the Abu Dhabi Department of Finance signed an agreement to fund stage two of the 1200-km national rail project. In March 2019 contracts were awarded to China State Construction Engineering Corporation and South Korea’s SK Engineering & Construction to build package A of stage two, including a 139-km stretch of track connecting the Port of Ruwais with the Saudi border at Ghuwaifat. The connection with Saudi Arabia also forms part of the long-awaited GCC rail network (see regional analysis). Package A was completed in September 2021, two months ahead of schedule.
In April 2020 construction work began on package B of stage two – which extends over 216 km and includes links to KEZAD and package C, a 94-km segment stretching from Sharjah to Jebel Ali in Dubai. In March 2022 the tracks between Abu Dhabi and Dubai were connected. The link includes 29 bridges, 60 crossings and 137 drainage channels.
While the passenger service was not yet operational as of September 2023, the expected travel time between Abu Dhabi and Dubai is 50 minutes, with the travel time between Abu Dhabi and Fujairah expected to be 100 minutes. In June 2022 Etihad Rail signed a $327m deal with CAF, a Spanish train company, for the design, manufacture, supply and maintenance of passenger trains, and in October of the same year the tracklaying work between Ras Al Khaimah and Sharjah was finished. All packages of stage two were completed as of February 2023.
That same month freight services were launched at a ceremony attended by Saif bin Zayed Al Nahyan, the UAE minister of interior, among other officials. In April 2023 Etihad Rail’s cargo service became operational, with customers able to ship freight via rail from Al Fayah to anywhere in the country.
Connectivity Plans
It is expected that 36m passengers will use the rail network annually by 2030. It will connect 11 cities in the seven emirates and carry 60m tonnes of freight each year. It is also anticipated to decrease carbon emissions by 70-80%, provide more than 9000 jobs and significantly reduce traffic in the country. The completed passenger rail system has potential to reshape the property market across the UAE – with property values in areas close to stations benefitting the most – as it will make it more feasible for residents of the UAE to live in one emirate and work in another (see Real Estate & Construction chapter).
The national rail will also connect to a wider GCC network, improving rail links with neighbouring countries. In September 2022 the UAE and Oman agreed to a $3bn deal to link Abu Dhabi with Oman’s Sohar Port, which will allow passengers to travel between the two in 100 minutes. The two countries established a joint venture, the Oman-Etihad Rail Company, to undertake the project. In February 2023 Mubadala Investment Company, the emirate’s sovereign investment vehicle for strategic development, signed a cooperation agreement with the joint venture to back the rail link.
Ports
In line with trends observed in other parts of the sector, 2022 was a year of recovery and growth for the ports segment. AD Ports Group, the emirate’s ports operator, posted record revenue of Dh5.5bn ($1.5bn) in 2022, an increase of 41% compared to Dh3.9bn ($1.1bn) in 2021. The group reported a net profit of Dh1.3bn ($354m) that year, a 53% rise compared to Dh853m ($232m) in 2021. Furthermore, its earnings per share grew to Dh0.26 ($0.06) in 2022, compared to Dh0.22 ($0.04) in 2021.
According to AD Ports Group, its total cargo processed increased by 3% on a like-for-like basis to reach 31.7m tonnes. This total is below the 44.6m tonnes processed in Abu Dhabi’s ports the previous year, but the 2021 total included a one-off sand supply project of 14.7m tonnes that distorts the picture.
Meanwhile, container throughput grew to 4.3m twenty-foot equivalent units (TEUs) in 2022, up 28% from 2021. This growth in container traffic is providing opportunities for service providers. “The UAE has proven its resilience to international shocks, even though some aspects remain uncontrollable and responses can only be formulated once the variables are known,” Ammar Al Shaiba, acting CEO of marine services and shipping company SAFEEN Group, told OBG. “The most crucial factor is a commitment to clients and customers, as well as continuous expansion.”
Thanks to increased revenue, AD Ports Group has been active with new investment both in the emirate and around the world. In September 2022 AD Ports Group began construction on a 1.8m-TEU terminal at Khalifa Port, which will include a rail platform and 1m sq metres of terminal yard. The project is budgeted at Dh3.3bn ($898m) and is scheduled for completion in the first half of 2025. The terminal is a joint venture between France’s CMA Terminals, which has a majority ownership stake of 70%, and AD Ports Group, which retains the remaining 30%.
In March 2022 AD Ports Group announced plans to build several marinas and ferry terminals across Abu Dhabi. Marina and ferry facilities at Rabdan, Saadiyat Island and Al Aliah Island were expected to be completed in the fourth quarter of 2022, and another marina and ferry station project was under development at Jebel Dhanna, with an expected completion date at the end of 2023. Expansion plans include the addition of new vessels to the emirate’s ferry fleet, increasing its passenger-carrying capacity by 70% and its vehicle-carrying capacity by 40%.
The emirate is also driving the development of maritime infrastructure beyond its own borders. In January 2023 AD Ports Group signed agreements with Angola’s Ministry of Transport to develop the West African nation’s maritime infrastructure. In March of the same year it announced a new dedicated roll-on/ roll-off shipping service between Abu Dhabi’s Khalifa Port and Kuwait’s Shuwaikh Port.
Air
Air transport activity in Abu Dhabi rose in 2022 as the post-pandemic recovery in tourism and business continued. Passenger traffic to the emirate’s five airports tripled, rising to 15.9m from 5.3m passengers in 2021. That same year AUH and AAN combined moved 583,949 tonnes of air freight.
As of December 2022 the UAE’s national airline Etihad Airways had served over 10m passengers that year, surpassing the 3.5m passengers it carried in 2021 but below the 2019 figure of 17.5m. In the first half of 2022 it recorded a profit of $296m, a marked recovery from pandemic-induced losses of $476m in 2021 and $1.7bn in 2020. Its 2022 performance was boosted by new routes, higher flight frequencies and resumed destinations that had been suspended during the pandemic, in response to a rebound in demand. The airline aims to raise annual passenger numbers to 30m and operate a fleet of 150 planes by 2030.
Construction continues on the new terminal building at AUH. Known as Midfield Terminal Building during the construction phase, once finished, the new 700,000-sq-metre terminal will raise the airport’s handling capacity to accommodate 45m passengers per year, process 11,000 passengers per hour and operate 79 aircraft. Additionally, it will contain the world’s largest baggage-handling system. The project’s completion date is scheduled for the end of 2023.
On the commercial side, Abu Dhabi Airports Free Zone (ADAFZ), a wholly owned subsidiary of ADAC that operates free zones in different districts of three airports in the emirate, leased out 256% more space and properties in 2022 compared to 2021 – another positive indicator of increased demand. ADAFZ signed contracts spanning 163,580 sq metres of leasable space across AUH, AAN and AZI. New contracts included deals for commercial spaces, land development plots and administrative facilities. The number of new free zone entities registered with ADAFZ in 2022 increased by 45% from the previous year, while the number of new manufacturing licences issued rose by 200%.
Outlook
With significant progress made towards establishing a fully operational inter-emirate national railway and Etihad Airways returning to profit in 2022, there are compelling reasons to be optimistic about the future trajectory of the Abu Dhabi transport sector. The emirate continues to innovate in strategic planning and system management, deploying autonomous vehicles, water taxis, buses on demand and AI to help alleviate traffic congestion and pollution. Navigating the risks and challenges that accompany experimental deployments of advanced technologies will require nimble regulators and robust public-private partnerships. Ultimately, not only Abu Dhabi residents stand to benefit from these innovations, but also observers around the world who can learn invaluable lessons from the emirate’s experiences.
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