UAE and Jordan sign $2.3bn deal to build Aqaba Port Railway linking mines to the Red Sea
UAE and Jordan signed definitive agreements to develop the Aqaba Port Railway, a $2.3bn, 360-kilometre rail corridor designed to modernize Jordan’s mineral logistics and boost regional trade.
The UAE and Jordan on Wednesday formalized a landmark $2.3 billion partnership to develop the Aqaba Port Railway, kicking off construction of a 360-kilometre freight corridor that will link Jordan’s phosphate and potash production to the Port of Aqaba. The signing at Qasr Al Watan was presided over by Jordanian Prime Minister Jafar Hassan and UAE Vice President Sheikh Mansour bin Zayed Al Nahyan, marking the operational start of a strategic initiative intended to transform the country’s logistics architecture.
Agreements signed at Qasr Al Watan
The final contracts establish the UAE–Jordan Railway Company as the vehicle to implement the Aqaba Port Railway, with both governments and corporate partners committing to the project’s delivery. Officials described the ceremony as the transition from planning to execution, with immediate steps toward project financing and engineering mobilization.
Consortium composition and implementing partner
The joint venture is structured as an equal partnership between Abu Dhabi-based sovereign investment platform Lunate Holding and a consortium of Jordanian sovereign and industrial entities. Participating Jordanian partners include the Jordan Phosphate Mines Company, Arab Potash Company, the Government Investments Management Company and the Social Security Investment Fund. Etihad Rail will serve as the executing arm responsible for implementation, operation and long-term maintenance.
Route, engineering and logistical design
The Aqaba Port Railway route will connect the primary phosphate mines at Shidiya and the potash production sites in Ghor Al Safi to industrial terminals at the Port of Aqaba. Designed to international standards, the 360-kilometre alignment requires extensive tunnelling and bridge works to navigate Jordan’s rugged southern interior and the Jordan Valley, and will be engineered to accommodate heavy bulk freight trains.
Freight capacity and economic implications
Planners estimate the network will handle roughly 16 million tonnes of cargo annually, including about 13 million tonnes of phosphate and 2.6 million tonnes of potash. By shifting these flows from road to rail, the Aqaba Port Railway aims to cut per-unit transport costs, increase supply chain reliability, and enhance the competitiveness of Jordanian minerals on global markets.
Strategic regional connectivity
Beyond its immediate industrial role, the railway is positioned as the foundational phase of Jordan’s National Railway Network. The strategic roadmap envisions a northward extension toward the Madounah area near Amman and onward connections to Syria, the Mediterranean and Turkey, while also facilitating links to Saudi Arabia and wider Gulf Cooperation Council markets. Project backers describe the corridor as an enabler of wider regional trade integration.
Finance, timeline and key signatories
The $2.3 billion agreement is an operational element of a broader $5.5 billion investment framework announced in late 2023, reflecting high-level commitment from both capitals. Officials signalled that financial close is expected by early 2027, after which a five-year construction programme is planned. Primary signatories to the development agreement were Jordan’s Minister of Transport, Dr. Nidal Katamine, and the UAE Minister of Energy and Infrastructure, Suhail Al Mazrouei. A separate shareholders’ pact was executed by heads of the Jordanian corporations—Dr. Mohammad Thneibat, Engineer Shehadah Abu Hudaib, Dr. Ezzeddine Kanakrieh and Waddah Barqawi—alongside Jassem Mohammed Buatabah Al Zaabi, chairman of the Abu Dhabi Department of Finance.
Government statements and strategic intent
Jordan’s Prime Minister Jafar Hassan framed the project as a tangible outcome of the shared development vision between King Abdullah II and UAE President Sheikh Mohamed bin Zayed Al Nahyan, underscoring the partnership’s role in strengthening bilateral economic ties. Sheikh Mansour said the railway illustrates the UAE’s continued focus on infrastructure-led investments that drive regional stability and growth, and that the initiative will help position Aqaba as a leading logistics hub.
The Aqaba Port Railway represents a major infrastructure commitment with the potential to reshape Jordan’s export model, reduce road congestion and lower transport costs for bulk commodities. As project partners move toward financial close and construction, attention will turn to detailed engineering, environmental assessments and operational planning required to deliver the corridor on schedule.
