UAE, Jordan sign four railway deals worth $2.3 billion

The Ministry of Investment of the UAE and the Ministry of Investment of Jordan have signed four agreements worth USD 2.3 billion for a railway project that will link the port of Aqaba in the Red Sea with the mining regions of Al Shidiya and Ghor es-Safi.

Etihad Rail, the developer and operator of the UAE National Railway Network and the Jordanian Ministry of Transport will facilitate the implementation of railway projects in Jordan. The railway project is expected to take up to five years to become operational and will initially begin with the transport of 16 million tonnes of phosphate and potash products. The project will also include the construction of loading and unloading terminals for various mineral products in Aqaba, Ghor Al Safi, and Shidiya.

Strategically located between Europe, Asia, and Africa, the port plays a pivotal role in the development of the Jordanian economy, handling most imports and exports to and from Kingdom. 

Since its establishment in the UAE, Etihad Rail has been responsible for building, developing, and operating the UAE National Railway Network for freight and passenger transport, and constitutes a key part of the "Projects of the 50." Since 2016, the company has been operating a route, transporting granulated sulfur from gas production fields in Shah and Habshan to export points at Ruwais Port.

The deal is part of an investment package signed between the two countries last year worth around USD 5.5 billion. The UAE is one of the largest foreign investors in the Hashemite Kingdom of Jordan, having invested about USD 22.5 billion into various key sectors of the country’s economy over the past 10 years