Funding memorandum follows a $2 billion settlement that the UAE and Jordan signed in 2023
“The Funding Memorandum with the Hashemite Kingdom of Jordan showcases our dedication to leveraging our collective and bilateral efforts to drive financial progress whereas enhancing resilience and selling financial diversification in each of our brotherly nations,” said Mohamed Hassan Alsuwaidi, Minister of Funding of the UAE.
Etihad Rail strengthens Jordan ties
According to the 2 ministries’ cooperation, Etihad Rail, the developer and operator of the UAE nationwide railway community, signed an settlement with the Jordanian ministry of transport to facilitate the implementation of railway tasks in Jordan. Their settlement goals to construct, develop and function a Jordanian railway community spanning 360 kilometers, linking phosphate and potash mines to the Port of Aqaba.
Moreover, UAE’s Etihad Rail signed two further MoUs with the Jordan Phosphate Mines Firm and Arab Potash Firm to move 16 million tonnes of phosphate and potash yearly from mining websites to the Port of Aqaba by way of the Jordanian railway community.
This strategic connection goals to create a transformative shift within the transportation of important supplies, improve export capabilities, and enhance logistical effectivity. This growth will help the creation of job alternatives within the transport and mining sectors, and contribute to financial growth in Jordan.
Better infrastructure for mineral transportation
The funding memorandum between the UAE and Jordan will embrace the event of the railway infrastructure, together with the manufacturing and provide of a fleet of trains.
The undertaking may also embrace the development of loading and unloading terminals for numerous mineral merchandise in Aqaba, Ghor Al Safi, and Shidiya. These terminals will facilitate the environment friendly dealing with and transportation of minerals, creating extra seamless and environment friendly logistics and export operations. Moreover, the undertaking will comprise upkeep, restore, and operation of the railway community.
“This collaborative partnership aligns with our overarching imaginative and prescient to assemble a strong and revolutionary railway community that meets and exceeds international requirements, thereby setting the stage for future developments and prosperity within the area,” Alsuwaidi added.
$2.3 billion funding
“Right this moment, we signed Emirati funding agreements valued at $2.3 billion to attach the Port of Aqaba with the mining areas in Al-Shidiya and Ghor Al-Safi,” said Dr. Bisher Al-Khasawneh, Jordan’s Prime Minister.
This funding memorandum follows a $2 billion settlement that the UAE and Jordan signed in 2023, establishing a framework for funding cooperation in key areas corresponding to infrastructure and growth. The UAE is among the largest overseas buyers in Jordan, having invested about $22.5 billion into key sectors throughout the nation over the previous 10 years.
The prime minister added that the agreements kind a complete cooperative framework within the railway sector which seeks to switch technical experience and abilities in railway building and operation.
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Development bids to start in 2026
Al-Khasawneh additionally famous that the undertaking will take 5 years to begin precise operations. Research on railway tracks and the dealing with necessities for potash and phosphate will conclude by the tip of 2025, with the purpose of issuing bids for building work in early 2026.
The institution of this railway will tremendously improve Jordan’s logistical and export capabilities, beginning with a capability of 16 million tons of phosphate and potash merchandise. Moreover, it should enhance logistical effectivity and export processes, creating new job alternatives throughout numerous fields, together with logistics, mining, railways, and different key sectors.
Furthermore, the railway route will begin on the phosphate port and the commercial port in Aqaba, extending northward to Wadi Al-Yatam after which to Shidiya. One other route will department westward from Wadi Al-Yatam to Ghor Al Safi by way of Wadi Araba.
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