New railway project aims to connect Jordan’s port of Aqaba with key mining regions, enhancing trade links between the UAE, Jordan, and beyond.
The UAE and Jordan have signed an agreement to invest $2.3 billion in developing a railway network connecting Jordan’s southern port of Aqaba with its northern mining regions. This project is expected to enhance trade links, streamline transportation, and bolster economic integration between the two countries and the broader Middle East region. The agreement was signed by Jordanian Minister of Investment Kholoud Al-Saqqaf and UAE Minister of Investment Mohammed Hassan Al Suwaidi.
This is part of the investment package worth approximately $5.5 billion that Jordan signed with the Emirates in November last year during the state visit of King Abdullah II of Jordan to Abu Dhabi
As a result of the visit, the Jordan Investment Fund signed an agreement with Abu Dhabi’s holding company ADQ to establish an investment fund in Jordan to focus on infrastructure and development schemes.
Strategic Importance of the Railway Network
The new railway is designed to serve as a critical logistical link for Jordan’s mining sector, connecting extraction sites to Aqaba, the country’s key trade gateway to the Red Sea. By facilitating the efficient movement of goods, the project aims to reduce transportation costs, improve supply chain efficiency, and increase the competitiveness of Jordanian exports. This infrastructure will also position the UAE as a pivotal partner in Jordan’s economic growth.
“We aim to build new economic and investment bridges that support infrastructure development and offer promising opportunities,” the Jordan News Agency quoted Al Suwaidi as saying.
The mining sector in Jordan is projected to expand significantly, with its economic contribution expected to rise to 2.1 billion Jordanian dinars (about $2.96 billion) by 2033, up from approximately 700 million dinars last year, as per the National Mining Strategy. Additionally, Jordan plans to boost employment in the mining industry to 27,500 jobs in the coming years, according to the Jordan News Agency. This growth aligns with increasing economic cooperation with the UAE, evidenced by a 47% rise in non-oil trade between the two countries in 2022, totaling $4.5 billion.
“Today we signed Emirati investment documents worth $2.3 billion to connect the port of Aqaba to the mining areas in Al-Sheidiya and Ghor es-Safi,” said Jordanian Prime Minister Bisher Al Khasawneh. “We are always happy with the extended strategic partnership and fraternal relations between Jordan and the Emirates, which overshadow the shadows of the close fraternal relationship between His Majesty King Abdullah II and his brother, His Highness Sheikh Mohammed bin Zayed Al Nahyan.”
Broader Economic Implications
Beyond its immediate impact on the mining industry, the railway project is expected to have far-reaching economic benefits. It will foster stronger trade relationships within the GCC and across the Levant region, encouraging investments and partnerships in sectors like logistics, manufacturing, and energy. By integrating regional markets, the railway could unlock new opportunities for businesses and stimulate economic diversification.
Al Suwaidi went on to say that, “Within the framework of our vision to achieve comprehensive and sustainable economic development, we aim to build new economic and investment bridges that support infrastructure development and offer promising opportunities,” he continued. Our strategic approach to developing a railway network compliant with international standards aligns with this partnership as well.”
Environmental and Social Considerations
The railway development aligns with both countries’ sustainability goals, providing a greener alternative to road transport by reducing carbon emissions and lowering fuel consumption. Additionally, the project is anticipated to create thousands of jobs, contributing to social and economic stability in the region. The emphasis on sustainable infrastructure underlines a commitment to fostering long-term growth while preserving environmental standards.
Future Prospects for Regional Cooperation
This strategic partnership between the UAE and Jordan is expected to serve as a model for future cooperative ventures in the Middle East. By enhancing connectivity and trade, the railway network has the potential to strengthen geopolitical ties and promote regional stability. It may also pave the way for similar infrastructure projects, fostering a more integrated and economically vibrant region.
A Step Toward Further Regional Integration
The UAE-Jordan railway project represents a significant step toward regional economic integration, aligning with broader goals of sustainable development and economic growth. By enhancing trade routes and fostering partnerships, this investment is poised to yield substantial benefits for both countries and beyond.
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