The UAE’s ministry of investment recently signed an investment memorandum with Jordan’s ministry of investment to establish a framework for cooperation in the railway sector. The agreement aims to enhance capabilities and facilitate the exchange of knowledge, skills and technical expertize between the two countries.
“The Investment Memorandum with the Hashemite Kingdom of Jordan showcases our commitment to leveraging our collective and bilateral efforts to drive economic growth while enhancing resilience and promoting economic diversification in both of our brotherly nations,” stated Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE.
Etihad Rail strengthens Jordan ties
In line with the two ministries’ cooperation, Etihad Rail, the developer and operator of the UAE national railway network, signed an agreement with the Jordanian ministry of transport to facilitate the implementation of railway projects in Jordan. Their agreement aims to build, develop and operate a Jordanian railway network spanning 360 kilometers, linking phosphate and potash mines to the Port of Aqaba.
Furthermore, UAE’s Etihad Rail signed two additional MoUs with the 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.
This strategic connection aims to create a transformative shift in the transportation of essential materials, enhance export capabilities, and improve logistical efficiency. This development will support the creation of job opportunities in the transport and mining sectors, and contribute to economic development in Jordan.
Greater infrastructure for mineral transportation
The investment memorandum between the UAE and Jordan will include the development of the railway infrastructure, including the manufacturing and supply of a fleet of trains.
The project will also 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. Additionally, the project will comprise maintenance, repair, and operation of the railway network.
“This collaborative partnership aligns with our overarching vision to construct a robust and innovative railway network that meets and exceeds global standards, thereby setting the stage for future advancements and prosperity in the region,” Alsuwaidi added.
$2.3 billion investment
“Today, we signed Emirati investment agreements valued at $2.3 billion to connect the Port of Aqaba with the mining areas in Al-Shidiya and Ghor Al-Safi,” stated Dr. Bisher Al-Khasawneh, Jordan’s Prime Minister.
This investment memorandum follows a $2 billion agreement that the UAE and Jordan signed in 2023, establishing a framework for investment cooperation in key areas such as infrastructure and development. The UAE is one of the largest foreign investors in Jordan, having invested about $22.5 billion into key sectors across the country over the past 10 years.
The prime minister added that the agreements form a comprehensive cooperative framework in the railway sector which seeks to transfer technical expertise and skills in railway construction and operation.
Construction bids to begin in 2026
Al-Khasawneh also noted that the project will take five years to commence actual operations. Studies on railway tracks and the handling requirements for potash and phosphate will conclude by the end of 2025, with the goal of issuing bids for construction work in early 2026.
The establishment of this railway will greatly enhance Jordan’s logistical and export capabilities, starting with a capacity of 16 million tons of phosphate and potash products. Additionally, it will improve logistical efficiency and export processes, creating new job opportunities across various fields, including logistics, mining, railways, and other key sectors.
Moreover, the railway route will commence at the phosphate port and the industrial port in Aqaba, extending northward to Wadi Al-Yatam and then to Shidiya. Another route will branch westward from Wadi Al-Yatam to Ghor Al Safi through Wadi Araba.
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