Jordan and the United Arab Emirates are making significant strides in paving the way for a future based on developmental collaboration and longer-term nation-building goals.
The two countries recently signed four agreements for a USD2.3 billion railway project. This project aims to connect the Port of Aqaba with the mining areas of Al-Sheidiya and Ghor Al-Safi.
This initiative is part of a broader set of investment projects signed by Jordan and the UAE, witnessed by His Majesty King Abdullah II and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, at the end of 2023, with a total value of approximately USD 5.5 billion.The railway project is expected to take five years to complete, with operations set to commence in 2030.
Detailed studies on the railway routes and handling requirements for potash and phosphate will be conducted from 2024 to the end of 2025, with construction tenders to be issued at the beginning of 2026. The project will extend from the phosphate and industrial ports of Aqaba towards the Wadi Al-Yutum area, with two routes: one leading to Al-Sheidiya and the other to Ghor Al-Safi, passing through Wadi Araba.
The route aims to connect major mining sites with the industrial port and phosphate port, improving logistics and export efficiency, and providing direct and indirect employment opportunities in transportation, railways, mining, and related sectors.
The project is anticipated to enhance Jordan’s logistical and export capacities, starting with 16 million tons of phosphate and potash products annually 13 million tons of phosphate and 3 million tons of potash. In a related context, His Majesty King Abdullah II reaffirmed, during his recent meeting with UAE Minister of Investment Mohamed Hassan Alsuwaidi, the commitment to expanding economic cooperation between the two countries.
The King highlighted the importance of the investment fund in Jordan established by Abu Dhabi’s ADQ. This fund is crucial for implementing new investments in sectors such as transportation and logistics in the Kingdom and for accelerating work on ongoing projects.
Prime Minister Bisher Khasawneh, during the signing ceremony, emphasized that this strategic investment project reflects the deep fraternal ties between the two countries.
He also affirmed ongoing cooperation with the UAE to ensure mutual benefits and highlighted the exemplary nature of the bilateral Arab relations. The presence of the railway is expected to naturally lead to the development of interconnected and sustainable projects along its route.
According to President of the Jordanian Businessmen Association Hamdi Tabbaa says that the transportation sector is crucial for economic activity and that the Aqaba port will experience a qualitative shift with the new railway linking it to industrial export areas, thereby reducing transportation costs and enhancing the competitiveness of Jordanian products.
Tabbaa also pointed out that the project will alleviate pressure on existing land infrastructure used by mining companies, providing safer road networks for citizens and increasing regional tourism mobility.
According to the Jordan Economic Forum President Khair Abu Sa’ilik, the Jordanian-UAE relations have become a successful model of Arab cooperation and integration, particularly in the economic sector.
“The two countries have signed numerous agreements and memorandums of understanding in economic, commercial, and investment fields, which have contributed to improving the trade balance and increasing investments. Trade levels between the two have seen a significant improvement, with non-oil trade reaching approximately USD 4.5 billion in 2022,” says Sa’ilik.
Sa’ilik also highlighted the role of the Abu Dhabi Fund for Development in financing various projects in Jordan, covering sectors such as education, health, transportation, energy, and infrastructure.
Additionally, the Aqaba Development Corporation and Abu Dhabi Ports Group have signed an agreement to establish a cruise ship terminal.He emphasized the importance of the industrial partnership agreement between Jordan, the UAE, Egypt, and Bahrain, as it represents a model that can be built upon to enhance industrial integration in the region.
According to the Jordanian Expatriate Businessmen and Women Association President Fadi Majali, Jordan and the UAE have strong and solid relations across various fields, particularly in economic and investment areas.
“These relationships have made the UAE one of Jordan’s key partners, with UAE investments in the Kingdom reaching approximately USD 15 billion across various sectors. The Jordanian-UAE relationship is one of the best examples of a genuine partnership between Arab countries, especially in investments. This underscores the need to build upon and strengthen these relations between the business communities of both countries, particularly in priority sectors such as agriculture, tourism, and manufacturing,” says Majali.
A significant portion of UAE investments is located in southern Jordan, an area that requires accelerated developmental efforts as it serves as the Kingdom’s main maritime gateway.
Notes from the Editor: This feature has been edited from its original publication here.
