UAE, Jordan sign $2.3 billion rail deal to move 16m tonnes to Aqaba

Dubai: The UAE and Jordan have signed a $2.3 billion agreement to build a 360-kilometre railway linking Jordan’s mining hubs to the Port of Aqaba, targeting annual transport capacity of 16 million tonnes of phosphate and potash.

The agreement, witnessed by Sheikh Mansour bin Zayed Al Nahyan and Jordan’s Prime Minister Dr. Jafar Hassan, includes the establishment of the UAE–Jordan Railway Company to oversee construction, operations and maintenance of the network.

The joint venture brings together Abu Dhabi’s L’IMAD Holding and Jordanian stakeholders, with Etihad Rail leading implementation through its role as the UAE’s national railway developer and operator.

Focus on trade flows and costs

The railway will connect Al-Shidiya and Ghor Al-Safi to Aqaba, reducing transport time and logistics costs for key export commodities that form a central part of Jordan’s economy.

Suhail bin Mohamed Al Mazrouei, Minister of Energy and Infrastructure, said the project supports a broader transport partnership aimed at strengthening Jordan’s role in global trade flows and improving connectivity through Aqaba.

Dr. Nidal Al-Qatamin, Jordan’s Minister of Transport, said, “Our longstanding fraternal ties with the UAE are today translating into a tangible reality that serves Jordan’s future. This railway network will mark a qualitative leap in Jordan’s mining sector by significantly reducing transport costs for phosphate and potash, enhancing our global competitiveness, and creating thousands of jobs for Jordanians.”

Investment builds on earlier agreement

The project extends a $5.5 billion investment framework agreed in 2023, reflecting continued economic cooperation between the two countries and a focus on infrastructure-led development.

“This agreement reflects our firm belief that investment in transport infrastructure is the cornerstone of any genuine economic transformation," said Jassem Mohamed Bu Ataba Al Zaabi, Chairman of the Abu Dhabi Department of Finance and Group CEO of L’IMAD Holding. "In the UAE, we believe that regional prosperity is a shared responsibility, and this project is a clear expression of our commitment to supporting our partners in building a more connected and competitive future regionally and globally.”

Regional integration push

The railway is expected to improve export efficiency, support job creation and strengthen Jordan’s position in global supply chains, while advancing the UAE’s strategy of backing infrastructure projects across the region.

Sheikh Mansour bin Zayed said the agreement reflects strong bilateral ties and a shared focus on economic development and integration, adding that such projects support sustainable growth and regional stability.

The development places transport infrastructure at the centre of economic cooperation between the UAE and Jordan, with execution now moving towards delivery of a network designed to support long-term trade and industrial activity.