Jordan and UAE Formalize $2.3 Billion Rail Deal for Aqaba Port Project
Jordan and the United Arab Emirates have officially signed agreements to develop the $2.3 billion Aqaba Port Railway project, marking a significant transition from initial cooperation to full-scale execution. The initiative involves constructing a 360-kilometer rail network connecting major phosphate and potash production sites in Shidiya and Ghor Al Safi to the industrial terminals at the Port of Aqaba. This infrastructure development is expected to transport approximately 16 million tonnes of cargo annually, significantly boosting Jordan’s mining sector and export economy. The project is managed by the newly established UAE–Jordan Railway Co., a joint venture between Abu Dhabi’s L’IMAD Holding Co. and a consortium of Jordanian sovereign and industrial entities, with Etihad Rail serving as the executing arm. Financial close is anticipated by early 2027, followed by a five-year construction period. By shifting freight from road to rail, the project aims to reduce transportation costs and enhance supply chain efficiency. Furthermore, this railway represents the first phase of Jordan’s National Railway Network, with future plans to extend connections to Syria, Turkiye, Saudi Arabia, and wider Gulf markets, reinforcing Jordan’s role as a regional logistics hub.
Wire timeline
Jordan and UAE Formalize $2.3 Billion Rail Deal for Aqaba Port Project
Jordan and the United Arab Emirates have officially signed agreements to develop the $2.3 billion Aqaba Port Railway project, marking a significant transition from initial cooperation to full-scale execution. The initiative involves constructing a 360-kilometer rail network connecting major phosphate and potash production sites in Shidiya and Ghor Al Safi to the industrial terminals at the Port of Aqaba. This infrastructure development is expected to transport approximately 16 million tonnes of cargo annually, significantly boosting Jordan’s mining sector and export economy. The project is managed by the newly established UAE–Jordan Railway Co., a joint venture between Abu Dhabi’s L’IMAD Holding Co. and a consortium of Jordanian sovereign and industrial entities, with Etihad Rail serving as the executing arm. Financial close is anticipated by early 2027, followed by a five-year construction period. By shifting freight from road to rail, the project aims to reduce transportation costs and enhance supply chain efficiency. Furthermore, this railway represents the first phase of Jordan’s National Railway Network, with future plans to extend connections to Syria, Turkiye, Saudi Arabia, and wider Gulf markets, reinforcing Jordan’s role as a regional logistics hub.
Business & Economy