Mansour bin Zayed and Jordanian PM Witness Signing of UAE-Jordan Railway Agreement

Introduction

In a significant move to strengthen economic ties between the United Arab Emirates (UAE) and Jordan, His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister of the UAE, along with Dr. Jafar Hassan, Prime Minister of the Hashemite Kingdom of Jordan, witnessed the signing of a pivotal agreement on the development of a new railway network in Jordan.

Details of the Agreement

The agreement aims to establish the UAE-Jordan Railway Company and involves the construction of a 360-kilometer railway that will link major mining areas, specifically Al-Shidiya and Ghor Al-Safi, to the Port of Aqaba. This project is set to transport 16 million tonnes of phosphate and potash annually. The total investment for this significant infrastructure project is estimated at US$2.3 billion.

Signatories and Joint Ventures

The official signing was conducted by:

• Suhail bin Mohamed Al Mazrouei, Minister of Energy and Infrastructure for the UAE.
• Dr. Nidal Al-Qatamin, Minister of Transport for Jordan.

As part of this agreement, the UAE-Jordan Railway Company has been formally established as a joint venture. Abu Dhabi's L’IMAD Holding Company will partner with several Jordanian stakeholders, including representatives from key companies such as Jordan Phosphate Mines Company and Arab Potash Company.

Economic and Strategic Implications

Sheikh Mansour bin Zayed emphasized that the agreement underscores the deep-rooted fraternal ties between the UAE and Jordan. He highlighted the mutual benefits that will arise from fostering cooperation and sustainable development between the two nations. The joint venture will leverage the expertise of Etihad Rail, renowned for developing and operating the UAE’s railway network, ensuring effective implementation and maintenance of Jordan's railway infrastructure.

Benefits to Jordan's Economy

Dr. Al-Qatamin noted that this railway network marks a transformative step for Jordan’s mining sector. By significantly reducing transportation costs for phosphate and potash, the project will enhance Jordan's competitiveness in global markets, creating thousands of jobs in the process.

Furthermore, the railway will enhance Jordan's export capabilities and logistics efficiency by connecting vital production sites directly to the Port of Aqaba, greatly reducing transport times and costs.

Broader Context

This project is seen as a continuation of a previous investment agreement amounting to US$5.5 billion that was signed late last year, reaffirming the ongoing commitment of the UAE to invest in Jordan’s economic infrastructure. The railway’s establishment reflects both countries’ dedication to pursuing high-impact projects aimed at bolstering regional stability and economic growth.

Conclusion

The signing of the railway agreement represents a crucial milestone in furthering economic links between the UAE and Jordan. It illustrates both nations' commitment to collaborative efforts that prioritize sustainable development, regional integration, and the creation of a competitive economic environment. As Sheikh Mansour bin Zayed expressed, the UAE will continue to support Jordan in its development goals, aiming to build a prosperous future for the people of both nations.