The United Arab Emirates (UAE) and Jordan have reached a $2.3bn agreement to develop a 360km railway network in Jordan.
The project involves building and operating a rail line in Jordan that will connect the southern phosphate mining area of Al-Shidiya and Ghor Al-Safi in the southwest, near the Dead Sea, with the southern Port of Aqaba on the Red Sea.
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The route is designed to transport up to 16 million tonnes of phosphate and potash annually.
According to the announcement by the Abu Dhabi Media Office, the railway is set to expand Jordan’s export capabilities and streamline logistics by creating a direct connection between mineral production areas and the Port of Aqaba.
It is also expected to reduce transport times and costs, while contributing to broader economic activity and job creation.
UAE vice president, deputy Prime Minister, and presidential court chairman Sheikh Mansour bin Zayed Al Nahyan said: “The agreement reflects the deep-rooted fraternal ties between the UAE and Jordan, built on a shared vision of strengthening cooperation, integration and sustainable development”.
Under the agreement, the UAE–Jordan Railway Company will be established as a joint venture between Abu Dhabi-based sovereign wealth fund L’IMAD Holding Company and Jordanian entities.
The Jordanian parties are Jordan Phosphate Mines Company, Arab Potash Company, the Jordan Social Security Investment Fund, and Government Investments Management Company.
The development follows a $5.5bn investment agreement signed in late 2023 in the presence of UAE President Mohamed bin Zayed Al Nahyan and Jordanian King Abdullah II.
The new joint venture will oversee the railway’s delivery, operation and maintenance through Etihad Rail.
Jordan transport minister Nidal Al-Qatamin added: “Our longstanding fraternal ties with the UAE are today translating into a tangible reality that serves Jordan’s future. This railway network will mark a qualitative leap in Jordan’s mining sector by significantly reducing transport costs for phosphate and potash, enhancing our global competitiveness, and creating thousands of jobs for Jordanians.”
