UAE, Jordan sign rail deal for bulk cargo

The UAE and Jordan have signed a $2.3 billion deal to build a 360-km railway in Jordan and launch a joint UAE–Jordan Railway Company, aimed at improving cargo movement and logistics efficiency. The rail link will transport up to 16 million tonnes of phosphate and potash each year, directly connecting mining areas to the Port of Aqaba. This will cut transport time and costs, reduce pressure on road freight, and make exports faster and more reliable.

The railway will connect Al-Shidiya and Ghor Al-Safi to Aqaba, creating a dedicated corridor for bulk cargo. This is expected to streamline supply chains, lower handling costs, and improve turnaround times for shipments heading to global markets.

Dr. Nidal Al-Qatamin, Minister of Transport of the Hashemite Kingdom of Jordan said, “This railway network will mark a qualitative leap in Jordan’s mining sector by significantly reducing transport costs for phosphate and potash.”

The project will be developed and operated by a joint venture between Abu Dhabi’s L’IMAD Holding and Jordanian partners, with Etihad Rail leading execution. Its experience in rail operations is expected to ensure efficient delivery and smooth operations.

Beyond mining, the project is likely to boost the wider logistics sector by improving infrastructure and attracting investment. It is also expected to create jobs and support industries linked to transport and trade. This deal builds on a broader $5.5 billion UAE investment plan, which shows stronger economic ties and long-term cooperation between the two countries.