UAE, Jordan sign $2.3bn agreement to build railways

The UAE and Jordan have signed a $2.3bn investment agreement to build railways in the kingdom, linking the Port of Aqaba with the mining areas in Al-Shidiya and Ghor Al-Safi.

The rail projects, as well as other investment initiatives, are part of the $5.5bn investment projects package signed by the two countries last year.

“Through enhancing capabilities and sharing technical expertise, we aim to establish new economic and investment connections that support infrastructure development and foster promising opportunities, all within the framework of our vision to achieve comprehensive and sustainable economic growth,” said Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE.

Etihad Rail, the developer and operator of the UAE National Railway Network, signed an agreement with Jordan’s Ministry of Transport to build, develop, and operate a 360-km railway network in Jordan as part of the investment agreement.

The network will connect phosphate and potash mines to the Port of Aqaba.

Etihad Rail also signed two additional MoUs with Jordan Phosphate Mines Company and Arab Potash Company to transport 16 million tonnes of phosphate and potash annually from mining sites to the Port of Aqaba via the Jordanian railway network.

The project will include the construction of loading and unloading terminals for various mineral products in Aqaba, Ghor Al Safi, and Shidiya. These terminals will facilitate the efficient handling and transportation of minerals, creating more seamless and efficient logistics and export operations.

The UAE Ministry of Investment said detailed studies on railway tracks and the handling requirements for potash and phosphate will be completed by the end of 2025, with the issuance of construction work bids scheduled for early 2026.

Dr Bisher Al-Khasawneh, the Prime Minister of Jordan, said the railway network would significantly enhance the country’s logistical and export capabilities, starting with a capacity of 16 million tonnes of phosphate and potash products.

UAE investments in Jordan

The latest investment builds upon several existing UAE investments in Jordan, some of which are set to come to fruition soon in the  Aqaba Special Economic Zone.

It follows a $2bn agreement signed by the UAE and Jordan in  2023, establishing a framework for investment cooperation in key areas such as infrastructure and development.

The UAE is a major foreign investor in Jordan, having invested approximately $22.5bn in various sectors of the country’s economy over the past decade.

Last November, the Jordan Investment Fund signed a pact with Abu Dhabi’s holding company ADQ to establish an investment fund in Jordan to focus on infrastructure and development schemes.

ADQ also launched a $100m technology-focused venture capital fund in collaboration with the Jordanian Ministry of Digital Economy and Entrepreneurship in June 2022. The fund aimed to invest in high-growth companies with proven business models.

Read: UAE, Jordan ink MoUs to expand investment cooperation in key sectors