At Al Sila, in the western corner of the UAE, local dhow boats and fishing vessels occupy much of the town’s community harbour, offering a rare glimpse into authentic coastal Emirati life.
Home to fewer than 8,000 people, Al Sila is far removed from the high-rise skylines of Dubai and Abu Dhabi, but its fortunes are about to shift as it becomes the starting point of Etihad Rail, the UAE’s 1,200km national network.
Analysts say this transformative multibillion-dollar project is expected to be a major economic catalyst.
It could drive up property prices as much as 25 percent near the planned stations, as investors capitalise on improved connectivity and new development opportunities.
With an expected contribution of over AED180 billion ($50 billion) to GDP and double-digit growth in land values around station hubs, “Etihad Rail is unlocking new real-estate corridors, reducing commuter times and driving sustainable urban expansion,” Sean Hyland, Middle East project director and rail sector lead for consultants Turner & Townsend, told AGBI.
Four of the 11 passenger stations that will connect Al Sila to Fujairah, on the east coast, have been confirmed so far: Abu Dhabi, Dubai, Sharjah and Fujairah. The exact locations of stations have still to be confirmed.
“Prices in those areas do rise faster and they do command premiums,” said Taimur Khan, head of research at real-estate management firm JLL Mena.
Etihad Rail
Global examples of such premiums include London’s Crossrail (Elizabeth Line), which led prices of properties near the stations to rise about 20 percent after the project was greenlit, according to US-headquartered global real-estate company CBRE.
“These zones near passenger stations are primed for mixed-use projects and tend to show stronger occupancy and retention metrics, especially when paired with supportive zoning and transit-oriented planning,” said Matt Myers, assistant professor in real estate at Heriot-Watt University Dubai.
Further upside is expected from the Abu Dhabi-Dubai high-speed rail line, which was announced in January. This separate line will slash travel time between the cities to 30 minutes.
Stations have been announced at Reem Island, Saadiyat Island, Yas Island and Zayed International Airport in Abu Dhabi, as well as Al Maktoum International Airport and Al Jaddaf in Dubai.
“Early construction work and the prospect of better connectivity could prompt speculative buying, especially in areas closer to the stations,” Apex Capital Real Estate said in a recent market paper.
In Dubai, homes within walking distance of a metro station already command a 10 percent premium, according to Pratyusha Gurrapu, head of research at Cushman & Wakefield Core. She added that Dubai South has recorded a 14 percent price increase since the 2024 announcement of a new passenger terminal at Al Maktoum Airport.
“These trends highlight how transport infrastructure and catalytic projects directly translate into real-estate value uplift,” Gurrapu said.
With freight operations now fully active, Etihad Rail is shifting focus toward activating development zones. The company is encouraging private-sector participation around important nodes of its corridor, including mixed-use projects, logistics hubs and commercial districts.
“I think the real development opportunities for a broad range of developers will be what can we develop along the way,” said Khan. “There are vast stretches of land in the middle which are well located and actually have great development potential.”
Etihad Rail’s passenger service is expected to carry up to 36 million people annually once fully operational.
For Al Sila, once considered a relative outpost at the edge of the nation, the arrival of the railway could mark the beginning of a broader transformation, linking it to the heart of the UAE’s economic ambitions and placing it firmly on the country’s investment map.
