UAE And Jordan Sign Pact To Boost Railway Sector Cooperation

The UAE and Jordan have signed an Investment Memorandum to enhance cooperation in the railway sector. This agreement aims to boost capabilities and facilitate the exchange of knowledge, skills, and technical expertise between the two nations. The collaboration includes Etihad Rail, which will help develop a 360-kilometre railway network in Jordan, linking phosphate and potash mines to the Port of Aqaba.

Etihad Rail has also signed MoUs with Jordan Phosphate Mines Company and Arab Potash Company. These agreements will enable the transport of 16 million tonnes of phosphate and potash annually from mining sites to the Port of Aqaba. This strategic initiative aims to improve logistical efficiency, create job opportunities, and contribute to economic development in Jordan.

Mohamed Hassan Alsuwaidi, UAE's Minister of Investment, stated: "The Investment Memorandum with the Hashemite Kingdom of Jordan showcases our commitment to leveraging our collective and bilateral efforts to drive economic growth, while enhancing resilience and promoting economic diversification in both of our brotherly nations. Through enhancing capabilities and sharing technical expertise, we aim to establish new economic and investment connections that support infrastructure development and foster promising opportunities, all within the framework of our vision to achieve comprehensive and sustainable economic growth."

The project will include developing railway infrastructure, manufacturing trains to international standards, and constructing loading terminals for minerals in Aqaba, Ghor Al Safi, and Shidiya. These facilities will streamline logistics operations for mineral exports. Additionally, maintenance, repair, and operation services for the railway network will be part of this extensive project.

Dr Bisher Al-Khasawneh, Prime Minister of Jordan, highlighted during the signing ceremony that this significant investment underscores the strong bond between Jordan and the UAE. He noted that these agreements are part of a broader memorandum signed in November 2023. Dr Al-Khasawneh stated: "Today, we signed Emirati investment agreements valued at US$2.3 billion to connect the Port of Aqaba with the mining areas in Al-Shidiya and Ghor Al-Safi."

Economic Impact

The railway project is expected to commence operations by 2030 after detailed studies on tracks are completed by 2025. The construction bids will be issued in early 2026. This initiative aims to enhance logistical capabilities starting with a capacity of 16 million tonnes of phosphate and potash products annually.

Shadi Malak, CEO of Etihad Rail said: "The agreements and MoUs signed by Etihad Rail reinforce our ongoing commitment to strengthening our presence in the region. This strategic vision is made possible by the unwavering support of our wise leadership and the guidance of H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail."

Regional Cooperation

Etihad Rail has been pivotal since its establishment in developing the UAE National Railway Network for freight and passenger transport. The company has successfully operated routes transporting granulated sulfur from gas production fields since 2016. In 2023, it launched freight train operations across the UAE.

The UAE-Oman Railway Network project exemplifies Etihad Rail's success in regional cooperation. Implemented through a joint venture with Oman Rail and Mubadala Investment Company under Hafeet Rail, this network strengthens both countries as logistical hubs.

Dr Al-Khasawneh emphasised that this project will improve export processes while creating new job opportunities across various sectors such as logistics, mining, railways, among others. He also mentioned ongoing discussions about establishing a dry port in Ma'an.

This Investment Memorandum follows a US$2 billion agreement signed by UAE and Jordan in 2023 for investment cooperation in key areas like infrastructure development. Over the past decade, UAE has invested around US$22.5 billion into various sectors within Jordan’s economy.

The collaboration between UAE's Etihad Rail Company and Jordanian entities highlights their shared vision for advancing rail infrastructure while fostering economic growth through strategic investments.

With inputs from WAM