Sheikh Khaled and King Abdullah Break Ground on $2.3 Billion Jordan Rail Project

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council, joined King Abdullah II of Jordan on Monday for the official ground-breaking ceremony of the Aqaba-Al-Shidiya-Maan Railway Project.

The $2.3 billion initiative involves the construction of a 403-kilometre transport network designed to link the Port of Aqaba directly with major mining centres in Al Shidiya and Ghor Al Safi in Jordan. Developed by the Jordanian-Emirati Railways Company, the investment aims to enhance the mining sector by connecting mines directly to shipping terminals, cutting transport expenses, and boosting supply chain efficiency. The agreement for the project was signed in July with the presence of Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court.

Upon arrival at King Hussein International Airport in Aqaba, Sheikh Khaled was welcomed by King Abdullah alongside a group of senior officials. The Crown Prince also held meetings with various stakeholders involved in the undertaking.

Dr Mohammad Thneibat, Chairman of the Jordan-UAE Railway Company, stated that the groundbreaking initiates a new era in bilateral cooperation, translating mutual trust into impactful development projects. He highlighted the network's capacity to connect production hubs with regional and global markets, thereby strengthening the competitiveness of national exports and supporting Jordan's role in international trade.

Project Scale and Economic Impact

The infrastructure development encompasses the laying of rail tracks alongside approximately 55 bridges, six tunnels, and related engineering works. Engineered to transport roughly 16 million tonnes of phosphate and potash every year, the system will replace congested routes used by lorries carrying potash from Ghor Al Safi, as well as an older rail line previously used for phosphate exports from Al Shidiya.

Economically, the project is projected to generate around 5,000 jobs across southern Jordan while trimming mineral transport costs by roughly $40 million annually. It will additionally foster new opportunities within engineering, construction, maintenance, logistics, and technology sectors throughout the southern governorates.

Ownership of the venture is split between local and regional entities, with one half held by the Jordan Phosphate Mining Company, Jordan's Arab Potash Company, government investment firm Musahamat, and the Social Security Fund, as reported by the Petra news agency. The remaining half is owned by the UAE sovereign investment firm L'imad Holding. Construction is scheduled to span five years.

UAE Cross-Border Rail Initiatives

The UAE continues to engage in numerous domestic and cross-border rail developments, including the 1,200km Etihad Rail network spanning all seven emirates for passenger and heavy freight services, as well as the Hafeet Rail link connecting Abu Dhabi to Sohar Port. Furthermore, the UAE remains a primary signatory to the India-Middle East-Europe Economic Corridor, a multinational transport framework intended to connect India to Europe through a combined ship-to-rail transit network traversing the UAE, Saudi Arabia, Jordan, and Israel.