Abu Dhabi, April 15 (Petra) – Jordan and the United Arab Emirates initiated a landmark $2.3 billion infrastructure partnership on Wednesday, signing definitive agreements to construct the Aqaba Port Railway. This project marks the formal commencement of a multi-billion dollar strategic corridor designed to modernize Jordan’s logistics backbone and integrate its heavy industry more deeply into global supply chains.

The signing ceremony, held at Qasr Al Watan, was presided over by Prime Minister Jafar Hassan and UAE Vice President and Chairman of the Presidential Court, His Highness Sheikh Mansour bin Zayed Al Nahyan. At its core, the venture is structured as an equal partnership between a consortium of Jordanian sovereign and industrial entities – including the Jordan Phosphate Mines Company, Arab Potash Company, the Government Investments Management Company, and the Social Security Investment Fund – and the Abu Dhabi-based sovereign investment platform, Lunate Holding.

The scope of the project involves the development of a 360-kilometer railway network engineered to international specifications. It is designed to bridge a critical infrastructure gap by providing a direct rail link between the primary phosphate mines in Shidiya and the potash production sites in Ghor Al Safi to the industrial terminals at the Port of Aqaba. Engineering plans include an extensive array of tunnels and bridges necessitated by the rugged topography of Jordan's southern interior and the Jordan Valley.

Beyond its immediate industrial utility, the railway serves as the foundational phase of Jordan’s National Railway Network. The strategic roadmap envisions an eventual northward extension toward the Madounah area near Amman, moving onward to Syria, the Mediterranean, and Turkey, while simultaneously facilitating links to Saudi Arabia and the broader Gulf Cooperation Council markets. This expansion is positioned as a lever for regional economic integration, aiming to cement Jordan’s status as a pivotal transit and logistics gateway between the Levant and the Gulf.

The economic implications are significant for Jordan’s mining sector, which remains a primary driver of the nation’s export economy. The rail network is expected to handle an annual cargo volume of approximately 16 million tons, comprising 13 million tons of phosphate and 2.6 million tons of potash. By shifting these volumes from road to rail, the project is intended to drastically reduce per-unit transportation costs, enhance supply chain efficiency, and allow Jordanian minerals to compete more aggressively on the global stage.

This agreement is an operational extension of a broader $5.5 billion investment framework established in late 2023 under the auspices of His Majesty King Abdullah II and UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan. Following the signing, officials indicated that financial closure is anticipated by early 2027, with the construction phase projected to span five years.

The official signatories for the primary development agreement were Minister of Transport Dr. Nidal Katamine and UAE Minister of Energy and Infrastructure Suhail Al Mazrouei. A separate shareholders' agreement was executed by the heads of the participating Jordanian corporations – Dr. Mohammad Thneibat, Engineer Shehadah Abu Hudaib, Dr. Ezzeddine Kanakrieh, and Waddah Barqawi – alongside His Excellency Jassem Mohammed Buatabah Al Zaabi, Chairman of the Abu Dhabi Department of Finance.

The proceedings concluded with high-level diplomatic exchanges, where Prime Minister Hassan conveyed King Abdullah II’s commendations to the UAE leadership for their steadfast support in realizing joint developmental goals. Sheikh Mansour bin Zayed reciprocated by affirming that the partnership serves as a premier model for trust-based bilateral cooperation, emphasizing the UAE’s commitment to fostering regional stability and prosperity through high-impact, sustainable economic projects. The meetings were attended by a senior delegation including Minister of State for Economic Affairs Muhannad Shehadeh, Ambassador Majid Al-Qatarneh, and UAE officials His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan and Audit Bureau President Humaid Abu Shabas.

//Petra// AA