Jordan lays tracks for growth with $2.3 billion rail project

The Jordanian government and Emirati partners have launched the Aqaba Port Railway Project, a $2.3 billion infrastructure scheme that will build a 360km freight railway linking phosphate and potash production areas at Shidiya and Ghor Al‑Safi to Aqaba’s Industrial Port. The project — structured as a 50:50 Jordanian‑Emirati joint venture between UAE‑based L’imad Holding and Jordanian sovereign and industrial partners — is expected to move about 16 million tonnes annually, markedly reducing transport costs and improving export efficiency.

"This is what “from vision to reality” means in economic terms," Muhannad Shehadeh wrote, underscoring the government’s shift from planning to execution. Shehadeh is Jordan’s Minister of State for Economic Affairs and head of the government economic team.

Project structure and strategic rationale

The rail link is being presented not simply as a transport project but as a strategic platform for broader regional infrastructure investment. Implemented through a 50:50 joint venture, the partnership pairs L’imad Holding’s capital and expertise with Jordanian sovereign and industrial assets to create a foundation for what the government describes as a major regional infrastructure platform.

Officials say the line will connect mineral extraction zones directly to port facilities in Aqaba, streamlining the logistics chain for two of Jordan’s key export commodities: phosphate and potash. The projected annual throughput of roughly 16 million tonnes is intended to cut unit transport costs and shorten export cycles for mining firms operating in the Shidiya and Ghor Al‑Safi areas.

• Cost and scale: $2.3 billion investment to construct a 360km freight railway.
• Ownership: 50:50 Jordanian‑Emirati joint venture involving L’imad Holding and Jordanian sovereign/industrial partners.
• Throughput: approximately 16 million tonnes per year targeted.

Economic context and wider programme

The Aqaba rail project sits within Jordan’s Economic Modernisation Vision for 2026–2029. Under the executive programme, the government has identified 392 projects that are expected to be financed in partnership with the private sector and supported by investments of about 10 billion Jordanian dinars (approximately $14.1 billion). The approach prioritises bankable projects in water, transport, energy and infrastructure and explicitly welcomes cross‑border investment.

Other headline programmes cited alongside the rail scheme include the National Water Conveyance Project and Amra City, the latter described by officials as a long‑horizon urban and investment platform that could activate more than 50 economic sectors. Domestic indicators cited in the announcement include a rise in company registrations in the first quarter of 2026 and strong corporate earnings on the Amman Stock Exchange.

The International Monetary Fund was referenced to highlight macroeconomic stability, noting Jordan’s economy grew by 2.8 per cent in 2025 and that inflation remained below 2 per cent, with momentum strengthening in early 2026 — factors government officials say are critical to attracting long‑term regional capital.

Outlook: By combining Jordanian assets with Emirati investment and expertise, the Aqaba Port Railway Project is being positioned as more than a domestic logistics upgrade. Planners expect it to enhance export competitiveness, lower costs for mineral producers, and serve as a template for future large‑scale, cross‑border infrastructure partnerships aimed at driving investment‑led growth across multiple sectors.