The UAE has signed a $2.3 billion deal to develop a 360-kilometer railway network connecting Jordan’s Aqaba port to its mining hubs at Al-Shidiya and Ghor Al-Safi. The project, developed and operated by UAE’s Etihad Rail, is part of a $5.5 billion investment package agreed upon by the two countries in November 2023.

As part of the agreement, Jordan’s railway infrastructure will be modernized, including the manufacturing and supply of new trains that meet international standards.

Moreover, the project will include the construction of terminals for loading and unloading mineral products at Aqaba, Ghor Al-Safi, and Shidiya. The railway is expected to become operational in five years and be completed in 2030.

“The Investment Memorandum with 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,” said Mohamed Hassan Al-Suwaidi, UAE’s minister of investment. 

Additionally, Etihad Rail has signed separate agreements with Jordan Phosphate Mines Co. and Arab Potash Co. to transport 16 million tonnes of phosphate and potash annually from mining sites to Aqaba via the Jordanian railway network.

“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,” Al-Suwaidi added. 

Meanwhile, Jordanian Prime Minister Bisher Al-Khasawneh said, “We are always pleased with the enduring strategic partnership and close fraternal ties between Jordan and the UAE, which reflect the strong bond between King Abdullah II and his brother, Sheikh Mohammed bin Zayed Al Nahyan.” 

He added that detailed studies on railway tracks and handling requirements for potash and phosphate will be completed by the end of 2025, with construction work bids expected to be issued in early 2026.

Shadi Malak, CEO of Etihad Rail, said, “We are keen to leverage our proven expertise in developing and operating the UAE National Railway Network to support Jordan’s ambitious plans for advancing its rail infrastructure and driving economic growth. This aligns with the strong and cooperative relationship between our two nations.”

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.