UAE and Jordan forge railway investment deal

The United Arab Emirates (UAE) and Jordan have signed a significant Investment Memorandum aimed at bolstering co-operation in the railway sector. The agreement, signed by the Ministry of Investment of the UAE and the Jordanian Ministry of Investment, is set to enhance bilateral collaboration through the development of a comprehensive railway network in Jordan.

Under the memorandum, Etihad Rail, the UAE’s railway development and operation firm, will design, construct and manage a new railway line in Jordan. This line will span approximately 360km, connecting key mining areas with the Port of Aqaba. The initiative aims to streamline the transport of phosphate and potash, vital resources for Jordan’s economy, by linking mining sites to the port.

Etihad Rail has also formalised agreements with Jordan’s Ministry of Transport, Jordan Phosphate Mines Company and Arab Potash Company. These agreements are expected to facilitate the annual transport of 16 million tonnes of phosphate and potash, enhancing Jordan’s export capabilities and logistical efficiency.

The railway project, set to be operational by 2030, will include the construction of loading and unloading terminals at key locations including Aqaba, Ghor Al Safi and Shidiya. This infrastructure will support the efficient handling of mineral products and contribute to job creation in the transport and mining sectors.

UAE Minister of Investment, His Excellency Mohamed Hassan Alsuwaidi, said: “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.”

Jordanian Prime Minister Dr. Bisher Al-Khasawneh underscored the significance of the investment, noting that it reflects the strong ties between Jordan and the UAE. The Prime Minister also mentioned the broader scope of the November 2023 agreements, which total around US$5.5 billion and include other investment initiatives.

The project is expected to be completed within five years, with initial studies and bidding processes scheduled for the next few years. This collaborative effort marks a crucial step in enhancing Jordan’s logistical infrastructure and export processes while reinforcing the robust economic relationship between the two nations.