Jordan, UAE launch $2.3 billion Aqaba railway project to boost trade, logistics
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- Jordan and the United Arab Emirates signed agreements to launch a major railway project linking Aqaba Port to mining zones.
- The project, valued at around $2.3 billion, aims to strengthen exports, logistics, and regional connectivity.
Jordan and the United Arab Emirates have signed agreements to begin implementation of the Aqaba Port railway project, a large-scale infrastructure initiative aimed at transforming the country’s transport and logistics sector.
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The signing ceremony was attended by Jordanian Prime Minister Jaafar Hassan and UAE Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan, marking what officials described as a strategic step in deepening economic cooperation between the two countries.
Major infrastructure investment
The project involves the establishment of a joint Jordanian-Emirati company to build and operate a railway network connecting Aqaba Port with key mining and production sites in the south of the country.
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Valued at approximately 2.3 billion US dollars, the project is considered one of the largest transport infrastructure investments in Jordan’s history.
It includes railway lines, tunnels, bridges, and supporting infrastructure designed according to international standards.
Boost to mining and exports
The railway will transport an estimated 16 million tonnes of phosphate and potash annually from mining areas to export terminals, significantly increasing the efficiency of Jordan’s key mining sector.
Officials say the project is expected to reduce transport costs, improve supply chain efficiency, and enhance the global competitiveness of Jordanian exports, particularly fertilizers and industrial minerals.
Regional connectivity plans
The initiative is also part of broader long-term plans to expand Jordan’s rail network and strengthen regional integration, with potential future links toward neighbouring countries, including Saudi Arabia and Syria, as part of wider Arab transport corridors.
Authorities say the railway could eventually position Aqaba as a major regional logistics hub connecting the Middle East with global trade routes.
Economic impact and timeline
The project is expected to generate direct and indirect employment opportunities across construction, transport, mining, and logistics sectors.
Financial closure is anticipated in early 2027, with construction expected to take approximately five years.
Officials also confirmed that land acquisition compensation will be provided to affected property owners, either through financial compensation or alternative land allocations.
Strategic partnership
Jordanian and Emirati officials described the agreement as a reflection of strong bilateral relations and a continuation of earlier investment frameworks between the two countries, aimed at expanding cooperation in infrastructure, energy, and trade.
