UAE-backed railway in Jordan to link phosphate and potash hubs with Aqaba
UAE-backed railway in Jordan will link Al-Shidiya and Ghor Al-Safi to Aqaba under a L’IMAD–Jordan joint venture led by Etihad Rail, reducing logistics costs.
The UAE-backed railway in Jordan will connect interior mining zones to the Red Sea port of Aqaba, aiming to cut transport times and logistics costs for key export commodities. The project is a joint venture combining Abu Dhabi’s L’IMAD Holding with Jordanian stakeholders, while Etihad Rail will lead implementation as the UAE’s national railway developer and operator. Officials say the line will bolster Jordan’s competitiveness in phosphate and potash markets and strengthen trade flows through Aqaba.
Joint venture and implementation roles
The agreement brings together L’IMAD Holding and Jordanian partners in a partnership that assigns delivery responsibility to Etihad Rail. Etihad Rail will oversee construction, operations planning and technical integration with existing logistics networks. The arrangement reflects a public-private approach intended to leverage UAE project management experience and Jordan’s local infrastructure knowledge.
The joint venture structure also embeds Jordanian ownership and operational input, stakeholders said, ensuring the railway responds to domestic commercial needs. By combining regional capital and local expertise, backers expect faster decision-making during the delivery phase and smoother regulatory coordination.
Route served and expected trade impact
The new line will run from Al-Shidiya and Ghor Al-Safi to the port of Aqaba, directly serving major phosphate and potash production zones. By shortening transit distances and offering rail freight options, the project is designed to lower per-tonne transport costs and transit time compared with current road and mixed-mode routes. This improved efficiency is expected to make Jordan’s mineral exports more competitive in international markets.
Officials highlight that reliable rail access to Aqaba will also help diversify cargo flows through the port, supporting exports beyond mining such as agricultural produce and manufactured goods. Reduced road congestion and lower overall logistics emissions were cited as additional benefits by project proponents.
Statements from ministers and senior officials
Suhail bin Mohamed Al Mazrouei, the UAE Minister of Energy and Infrastructure, said the project advances a broader transport partnership intended to anchor Jordan more firmly in global trade flows through Aqaba. Jordan’s Transport Minister, Dr. Nidal Al-Qatamin, described the network as a “qualitative leap” for the mining sector that will cut costs for phosphate and potash and create thousands of jobs. Their comments underscore the political backing for a project positioned as mutually beneficial for both countries.
Jassem Mohamed Bu Ataba Al Zaabi, Chairman of the Abu Dhabi Department of Finance and Group CEO of L’IMAD Holding, framed the investment as part of a regional commitment to prosperity and connectivity. Sheikh Mansour bin Zayed also affirmed that the initiative reflects strong bilateral ties and shared ambitions for integrated economic development.
Financing and links to the 2023 investment framework
The railway investment builds on a $5.5 billion framework agreed in 2023 between UAE and Jordan entities, expanding earlier commitments to infrastructure-led development. That earlier package established a basis for subsequent bilateral projects, and the railway is the most prominent new transport scheme to emerge from the framework. Project backers say the scale of finance and the integrated approach signal long-term strategic collaboration rather than a one-off transaction.
Funding for construction and early-phase operations will combine equity from the joint venture with project finance and potential multilateral or export-credit support, officials indicated. The financing mix is intended to de-risk the build phase while aligning incentives for on-time delivery and commercial performance once the line opens.
Economic outcomes and regional integration aims
Planners expect the railway to strengthen Jordan’s position in global supply chains by lowering export costs and improving predictability for shippers and miners. Job creation in construction, rail operations and allied logistics services is a stated objective, with authorities projecting thousands of direct and indirect roles during the build and operational phases. The route is also seen as reinforcing Aqaba’s role as a regional gateway for inland production.
For the UAE, backing the project aligns with a broader strategy of supporting regional infrastructure that promotes trade, stability and economic integration. By financing and delivering transport links, Emirati stakeholders aim to deepen commercial ties and foster supply-chain resilience across the Gulf and Levant corridor.
The project now moves from agreement to execution, with implementation milestones and procurement plans expected to be announced as Etihad Rail finalises technical studies and timelines. Stakeholders stressed that local content and workforce development will be factored into contracting and training programs.
Longer-term, the railway is being positioned as a building block for broader logistics networks that could interlink with other GCC rail ambitions and regional corridors. If delivered on schedule and within budget, backers say it could serve as a model for public-private cooperation on transnational infrastructure.
The UAE-backed railway in Jordan aims to deliver faster, cheaper and more reliable freight flows between inland production zones and the port of Aqaba, supporting Jordanian exports while advancing a shared regional development agenda.