The United Arab Emirates and Jordan have taken a major step toward enhancing regional connectivity and trade infrastructure with the signing of a historic agreement to develop a national railway network in Jordan and establish a joint UAE–Jordan Railway Company.
The agreement was witnessed by Mansour bin Zayed Al Nahyan and Jordanian Prime Minister Jaafar Hassan, reflecting deepening bilateral cooperation aimed at supporting economic integration and sustainable development.
Valued at approximately $2.3 billion, the project will involve the construction and operation of a 360-kilometre railway linking key Mining areas in Al-Shidiya and Ghor Al-Safi to the Port of Aqaba. The network is expected to transport up to 16 million tons annually of phosphate and potash, significantly improving logistics efficiency and reducing transport costs.
The agreement was signed by Suhail Al Mazrouei and Nidal Al-Qatamin, while the newly established joint venture will be led by Abu Dhabi’s L’IMAD Holding in partnership with key Jordanian institutions. The project will be executed by Etihad Rail, leveraging its experience in developing the UAE’s national rail network.
As The Middle East Observer notes, the initiative is expected to deliver a structural boost to Jordan’s mining sector by enhancing export competitiveness and integrating production hubs directly with global trade routes. Officials highlighted that the railway will also generate employment opportunities and support broader economic development across multiple sectors.
The project builds on a wider $5.5 billion investment framework agreed between the two countries in 2023, underscoring a long-term commitment to infrastructure-led growth and regional economic integration.
The Middle East Observer understands that the UAE–Jordan railway project reflects a wider regional shift toward investing in strategic transport corridors that enhance supply chain resilience, facilitate exports, and strengthen economic ties across the Middle East.
