In a significant development aimed at enhancing regional connectivity, Sheikh Mansour bin Zayed and the Prime Minister of Jordan witnessed the signing of an agreement between the United Arab Emirates (UAE) and Jordan to establish a railway network. This agreement marks a major step in strengthening ties between the UAE and Jordan, focusing on a comprehensive railway network that is set to boost trade and economic growth in the region.
Agreement Signing at Qasr Al Watan
Today, His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, along with Dr. Jaafar Hassan, Prime Minister of the Hashemite Kingdom of Jordan, witnessed the signing of a landmark agreement at Qasr Al Watan in Abu Dhabi. This pact aims to develop a railway network in Jordan and establish the Emirati-Jordanian Railways Company, which will oversee the construction and operation of a 360-kilometer rail line. This line is designed to connect key mining areas in Shaidiyah and Ghor al-Safi to the Port of Aqaba, facilitating the annual transport of 16 million tons of phosphate and potash, with a total project cost of $2.3 billion.
Key Participants and Roles
The agreement was signed on the UAE side by His Excellency Suhail Mohamed Faris Al Mazrouei, Minister of Energy and Infrastructure, and on the Jordanian side by His Excellency Dr. Nidhal Qatamin, Minister of Transport. The formal establishment of the Emirati-Jordanian Railways Company is a pivotal aspect of this deal, created through a joint venture between Lamad Holding Company of the UAE and several contributing entities in Jordan. From the Emirati side, the agreement was signed by His Excellency Jassim Mohamed Bua’thabah Al Zaabi, Chairman of the Abu Dhabi Finance Department and CEO of Lamad Holding, while Jordanian signatories included Dr. Mohammad Al-Dhanibat, Chairman of the Jordan Phosphate Mines Company, among others.
Economic and Strategic Implications
Under the agreement, the joint company will handle the execution, operation, and maintenance of the railway network in Jordan through its executive arm, Union Railway, which is responsible for the national railway network in the UAE. Sheikh Mansour emphasized that this agreement reflects the deep-rooted fraternal relations between the UAE and Jordan, built on a shared vision for cooperation, integration, and sustainable development. He noted, “This partnership marks an advanced model based on trust and shared objectives, driving economic development that serves the stability and prosperity of the region.”
Future Prospects and Collaborative Efforts
This agreement represents a natural extension of the $5.5 billion investment deal signed at the end of 2023 in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan and King Abdullah II of Jordan. The railway project is anticipated to enhance Jordan’s export capabilities and logistical efficiency by linking phosphate and potash production sites directly to the Port of Aqaba, thereby significantly reducing transportation time and costs. Furthermore, it is expected to create thousands of job opportunities for Jordan’s workforce.
As the region moves towards more integrated economic partnerships, both nations are committed to a future built on mutual growth and collaboration. According to Minister Al Mazrouei, this agreement paves the way for a strategic partnership in the transport sector, reinforcing Jordan’s position and its role in global trade through the Port of Aqaba. Dr. Nidhal Qatamin remarked, “What binds us with the UAE is a solid brotherly relationship now manifesting in a way that benefits the future of Jordan.” The Emirati-Jordanian Railways agreement is set to bring about significant changes, championing both nations’ efforts in achieving sustainable economic prosperity through innovative transportation solutions.