Jordan, UAE sign agreements for $2.3b railway project connecting Aqaba to mining sites

AMMAN — Jordan and the United Arab Emirates on Wednesday signed four agreements to initiate a $2.3 billion railway project that will connect the Port of Aqaba to the mining sites of Shidiyah and Ghor Al Safi. 

The project – signed between Etihad Rail, the developer and operator of the UAE National Railway Network, and the Ministry of Transport – is part of a broader investment package totalling around $5.5 billion, which was signed in late 2023 in the presence of His Majesty King Abdullah and UAE President Sheikh Mohamed bin Zayed Al Nahyan.

The venture aims to facilitate the implementation of railway projects in Jordan, with the aim of building, developing, and operating a Jordanian railway network spanning 360 kilometres, linking phosphate and potash mines to the Port of Aqaba.

During the signing ceremony, which was attended by UAE Minister of Investment Mohamed Suwaidi, Prime Minister Bisher Khasawneh highlighted the strategic significance of the railway project, underscoring the “solid” relationship between Jordan and the UAE, according to the Jordan News Agency, Petra.

The prime minister said that the railway project is expected to be completed within five years, with operations beginning in 2030, adding that detailed studies on the railway routes and the handling of potash and phosphate will be finalised by the end of 2025, with construction tenders anticipated to be issued in early 2026. 

Khasawneh stressed that the new railway will enhance Jordan's logistics and export capabilities, with an initial capacity to transport 16 million tonnes of phosphate and potash products. 

The project aims to connect key mining sites to the industrial and phosphate port, improving logistical efficiency and generating employment opportunities across various sectors, including logistics, mining, and railways, he noted.

The prime minister expressed his gratitude to the Jordan Phosphate Mines Company and the Arab Potash Company for their "constructive" engagement during the negotiation phase of this project, commending the cooperation shown by the UAE’s Etihad Rail Company.

Khasawneh also highlighted ongoing discussions with UAE partners regarding the potential re-establishment of the Maan dry port, which could further bolster Jordan's logistics network.

He also underlined the UAE's continued interest in Jordan's investment environment, particularly in the transport and rail sectors, noting that several UAE investments are expected to commence soon in the Aqaba Special Economic Zone Authority.

Suwaidi emphasised that the agreements reflect the UAE's commitment to fostering economic growth and diversification in both countries.