Jordan and the United Arab Emirates (UAE) inked four agreements, on Wednesday, to build a $2.3 billion railway investment project that will link the port of Aqaba with the mining regions of Al-Shidiya and Ghor es-Safi.
The project is part of the investment package worth approximately 5.5 billion dollars that Jordan signed with the Emirati side at the end of 2023, in the presence of His Majesty King Abdullah II and his brother, His Highness Sheikh Mohammed bin Zayed Al Nahyan, the President of the United Arab Emirates.
Prime Minister Bisher Al Khasawneh noted that this significant strategic investment project reflects the depth of the fraternal relations that unify the two brotherly nations and that it enjoys the patronage and attention of His Majesty King Abdullah II and his brother, His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, during his attendance at the agreement signing ceremony in the presence of UAE Minister of Investment Mohammed Hassan Al Suwaidi.
“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 Al-Khasawneh. He added that the targeted investment projects and the documents themselves are part of a package of investment projects that Jordan signed with the Emirati side, along with a memorandum of understanding and agreement. In November 2023, this investment package totaling around $5.5 billion will be made in the presence of His Majesty King Abdullah II and his brother, His Highness Sheikh Mohammed bin Zayed Al Nahyan.
The signing of these documents, he emphasized, comes as an embodiment of fraternal and strategic relations and for the benefit of all involved. “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,” He continued.
He emphasized th
at the signed agreements form an integrated cooperative framework in the railroad industry and will facilitate the sharing of technical know-how and skills related to the building and running of railroads.
The Prime Minister made note of the fact that this project will take five years, or until 2030, for the railway to actually start operating. The necessary thorough studies on the railway routes and the handling requirements for potash and phosphate will be finished between now, in 2024, and the end of 2025. The goal is to submit tenders for the implementation of building works as early as 2026.
This essential project for the Kingdom will connect the most significant mining sites with the industrial port and the phosphate port to Wadi Al-Yatam in Aqaba, in addition to enhancing logistical and export efficiency, he explained. With a volume starting with 16 million tons of phosphate and potash products, the establishment of this railway will allow us to significantly increase our logistical and export capabi
lities. This helps to provide new employment prospects in the railroad, mining, and other associated industries as well as in a variety of logistical domains.
The Prime Minister also commended the cooperation of the UAE’s Etihad Rail Company and congratulated the Jordan Phosphate and Potash Companies for their positive interactions during the project’s negotiation phase.
Along with the numerous current Emirati investments, some of which will soon be realized in the Aqaba Special Economic Zone, he also thanked the brothers from the Emirati side for their interest in Jordan’s investment climate in general and the transportation and railway industry in particular.
Similarly Mohammed Hassan Al Suwaidi, the United Arab Emirates’ Minister of Investment, stated that by expanding the scope of collaboration, enhancing capabilities, and sharing technical expertise, this agreement demonstrates the UAE’s dedication to leveraging our combined and bilateral efforts to promote economic growth and enhance flexibility and
economic diversification in the two brotherly nations.
“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.”
This crucial project stretches two routes one toward the Al-Sheidiya region and the other toward Ghor es-Safi, which passes through Wadi Araba from the Phosphate Port and the Aqaba Industrial Port to the Wadi Al-Yutam area. to provide a connection between the phosphate port and the industrial port and the major mining locations. This helps to increase the effectiveness of export and logistics while also creating direct and indirect job opportunities in the transportation, railroad, mining, and associated industries.
With the launch of this project, Jordan will be able to export 16 mill
ion tons of phosphate and potash goods, of which 3 million tones are potash products and 13 million tons of phosphate, increasing its logistics and export capacity.
An investment memorandum regarding investment cooperation in the railway project to link the industrial port and the phosphate port in Aqaba, as well as the mining and production areas of the phosphate companies in Al-Sheidiya and the potash and bromine companies in Ghor es-Safi, was signed by the two countries’ ministries of investment, with Prime Minister Bishr Al-Khasawneh present. signed by Minister of Investment Kholoud Al-Saqqaf and UAE Minister of Investment Mohammed Hassan Al Suwaidi.
The terms of reference paper for the Jordanian railway project was also signed by Wissam Al-Tahtamuni, Minister of Transport and Shadi Malik, CEO of Etihad Rail Company.
Additionally, the Jordanian side signed the document outlining basic conditions for the railway line from the Arab Potash Company’s factories in Ghor al-Safi to the industrial port in Aqab
a, as well as the document outlining basic conditions for the railway line project from the phosphate ore production areas in Sheidiya to the industrial port and phosphate port in Aqaba. Muhammad Al-Thanibat, Chairman of the Board of Directors of the Jordan Phosphate Mines Company; Shehada Abu Hadeeb, Chairman of the Board of Directors of the Arab Potash Company; and Shadi Malik, CEO of Etihad Rail Company, representing the United Arab Emirates.
Source: Jordan News Agency