UAE’s Etihad Rail will build and operate a Jordanian railway network spanning 360 kilometres following an investment memorandum signed between the Ministry of Investment of the UAE and the Ministry of Investment of the Hashemite Kingdom of Jordan.
The memorandum establishes a framework for cooperation in the railway sector. The project is expected to cost $2.3 billion.
Etihad Rail expands network
Etihad Rail, the developer and operator of the UAE National Railway Network, signed an agreement with the Jordanian Ministry of Transport for the project, which will link Jordan’s phosphate and potash mines – two of the most abundant natural resources in the country – in Al-Shidiya and Ghor Al-Safi to the Port of Aqaba.
This is Etihad Rail’s second major project with a neighbouring country, following the announcement of the UAE-Oman Railway Network project (which is a joint venture with Oman Rail and Mubadala Investment Company).
Etihad Rail also signed MoUs with Jordan Phosphate Mines Company and Arab Potash Company to transport 16 million tonnes of phosphate and potash annually from mining sites to the Port of Aqaba via the railway network.
The new railway line will transform the transportation of essential materials in the Kingdom, enhance export capabilities, and improve logistical efficiency. It will create job opportunities in the transport and mining sectors and contribute to economic development of Jordan.
The project scope also includes the construction of loading and unloading terminals for various mineral products in Aqaba, Ghor Al Safi, and Shidiya. It also includes maintenance, repair, and operation of the railway network.
The project is expected to take five years before the start of actual operations, projected for 2030. Detailed studies on railway tracks and the handling requirements for potash and phosphate will be completed by the end of next year, with the goal of issuing bids for construction work in early 2026.
Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, commented: “The investment memorandum 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.
“Through enhancing capabilities and sharing technical expertise, we aim to establish new economic and investment connections that support infrastructure development and foster promising opportunities.
“This collaborative partnership aligns with our overarching vision to construct a robust and innovative railway network that meets and exceeds global standards.”
This is part of the investment initiatives that Jordan signed with the UAE in November last year. Witnessed by His Majesty King Abdullah II of Jordan and Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, approximately $5.5 billion will be invested by the two countries.
Dr Bisher Al-Khasawneh, Prime Minister of the Hashemite Kingdom of Jordan, added: “We are always pleased with the enduring strategic partnership and close fraternal ties between Jordan and the UAE, which reflect the strong bond between our leaders.”
The Prime Minister also mentioned ongoing discussions with the UAE about revisiting the idea of establishing a dry port in Ma’an. He noted that the railway initiative lays the groundwork for re-establishing the dry port.
Shadi Malak, CEO of Etihad Rail, added: “The agreements and MoUs signed by Etihad Rail reinforce our ongoing commitment to strengthening our presence in the region.
“We are keen to leverage our proven expertise in developing and operating the UAE National Railway Network to support the Hashemite Kingdom of 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.”
Etihad Rail has been responsible for building, developing, and operating the UAE National Railway Network for freight and passenger transport. 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 UAE National Railway Network was inaugurated in 2023 as Etihad Rail continues to make progress in developing its passenger transport services.
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