UAE and Jordan Sign $2.3 Billion Agreement to Develop 360-Kilometre Railway Network and Establish UAE–Jordan Railway Company
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court of the UAE, and Dr. Jafar Hassan, Prime Minister of the Hashemite Kingdom of Jordan, witnessed the signing of a significant agreement today aimed at developing a railway network in Jordan. This agreement also establishes the UAE–Jordan Railway Company.
Key Details of the Agreement
The agreement encompasses the construction and operation of a 360-kilometre railway that will connect the primary mining areas of Al-Shidiya and Ghor Al-Safi to the Port of Aqaba. This project is designed to facilitate the transportation of 16 million tonnes of phosphate and potash annually, with a total investment value of approximately $2.3 billion.
The UAE’s interests were represented by Suhail bin Mohamed Al Mazrouei, Minister of Energy and Infrastructure, while Dr. Nidal Al-Qatamin, Minister of Transport of Jordan, signed on behalf of the Jordanian government.
Formation of the UAE–Jordan Railway Company
As part of this agreement, the UAE–Jordan Railway Company has been formally established as a joint venture between Abu Dhabi’s L’IMAD Holding Company and various Jordanian stakeholders. The founding agreement was signed by Jassem Mohamed Bu Ataba Al Zaabi, Chairman of the Abu Dhabi Department of Finance and Managing Director and Group CEO of L’IMAD Holding, representing the UAE.
From the Jordanian side, the signatories included Dr. Mohammad Thneibat, Chairman of Jordan Phosphate Mines Company; Eng. Shehada Abu Hdeib, Chairman of Arab Potash Company; Dr. Ezzeddin Kanakrieh, CEO of the Jordan Social Security Investment Fund; and Waddah Barqawi, Chairman of the Board of Directors of the Government Investments Management Company.
Operational Responsibilities and Strategic Importance
Under the terms of the agreement, the joint venture will oversee the implementation, operation, and maintenance of Jordan’s railway network through its executing arm, Etihad Rail, which is responsible for the UAE’s national railway network.
Sheikh Mansour bin Zayed emphasized that the agreement reflects the deep-rooted fraternal ties between the UAE and Jordan, founded on a mutual vision for enhanced cooperation and sustainable development. He noted that these strong bilateral relations serve as a model for partnerships based on trust and aligned objectives, aimed at fostering economic development and regional stability.
Economic and Employment Implications
Al Mazrouei stated that the agreement signifies a strategic move towards establishing an effective transport partnership between the UAE and Jordan. This partnership is expected to enhance Jordan’s strategic position and its capacity to contribute to global trade through the Port of Aqaba.
Dr. Al-Qatamin remarked that the longstanding ties between the UAE and Jordan are now translating into tangible benefits for Jordan’s future. The railway network is anticipated to revolutionize Jordan’s mining sector by significantly lowering transport costs for phosphate and potash, thereby improving global competitiveness and generating thousands of jobs for Jordanians.
The agreement is also seen as a natural extension of a previous $5.5 billion investment agreement signed at the end of 2023, which was attended by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Majesty King Abdullah II of Jordan.
Enhancing Export Capabilities
This railway project is expected to bolster Jordan’s export capabilities and improve logistics efficiency by directly linking phosphate and potash production sites to the Port of Aqaba. This connection is projected to significantly reduce transport times and costs, supporting comprehensive economic development and creating job opportunities across multiple sectors, leveraging the expertise of Etihad Rail.
Bu Ataba Al Zaabi expressed that the agreement underscores the belief that investment in transport infrastructure is crucial for genuine economic transformation. He emphasized the UAE’s commitment to fostering regional prosperity as a shared responsibility, highlighting the project’s role in building a more interconnected and competitive future.
Prior to the signing, Sheikh Mansour bin Zayed and Dr. Jaafar Hassan engaged in a bilateral meeting to review the fraternal relations between the UAE and Jordan, discussing avenues for enhancing cooperation across various sectors in alignment with the aspirations of both nations’ leadership.
The project exemplifies the UAE’s ongoing commitment to supporting strategic development initiatives in the region, reinforcing economic partnerships based on long-term investment and knowledge transfer. It also reflects the UAE’s dedication to advancing vital infrastructure and enhancing economic integration with allied nations, translating strong bilateral relations into impactful development projects that contribute to regional economic growth.
Source: www.zawya.com
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Published on 2026-04-15 18:08:00 • By the Editorial Desk
