The UAE and Jordan have signed a landmark agreement to develop a new rail network linking key mining regions to the Port of Aqaba, in a move set to strengthen regional trade flows and logistics efficiency.
The 360km railway will connect phosphate and potash production hubs at Al-Shidiya and Ghor Al-Safi directly to the port, with capacity to transport up to 16 million tonnes annually. The project, valued at US$2.3bn (c. £1.7bn), is expected to significantly reduce transport time and costs, improving Jordan’s export capabilities and logistics efficiency.
As part of the agreement, the UAE–Jordan Railway Company has been established as a joint venture between Abu Dhabi-based L’IMAD Holding Company and a consortium of Jordanian stakeholders. The JV will oversee development, operation and maintenance of the network, through Etihad Rail, the developer and operator of the UAE’s national railway network.
The project builds on a broader US$5.5bn investment framework agreed between the two countries in 2023 and reflects a shared strategy to strengthen infrastructure-led economic growth.
Suhail bin Mohamed Al Mazrouei, UAE minister of energy and infrastructure, said the partnership would enhance Jordan’s ability to contribute to global trade flows through the Port of Aqaba.
Jordan’s minister of transport, Nidal Al-Qatamin, added: “This railway network will mark a qualitative leap in Jordan’s mining sector by significantly reducing transport costs for phosphate and potash, enhancing our global competitiveness, and creating thousands of jobs for Jordanians.”
Beyond the mining sector, the scheme is expected to generate wider supply chain benefits, including job creation across multiple sectors.
The winners of the 2026 Supply Chain Excellence Awards awards will be revealed on 11 May.
