5 October 2026
Construction of a 403 km freight railway in southern Jordan formally started on 5 October 2026. King Abdullah II of Jordan and Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, attended the groundbreaking ceremony for the Aqaba-Al-Shidiyeh-Maan Railway Project in Aqaba. The line is a joint UAE and Jordanian investment of about USD 2.5 billion (AED 9.2 billion), developed by the Jordan-UAE Railway Company, where Abu Dhabi’s L’IMAD Holding represents the UAE side. It is designed to carry about 16 million tonnes of phosphate and potash a year to the ports of Aqaba, with about 55 bridges and six tunnels on the route, around 5,000 jobs in southern Jordan and transport savings of about USD 40 million (AED 147 million) a year.
What happened in Aqaba on 5 October
According to the Abu Dhabi Media Office, Sheikh Khaled arrived in Aqaba on a working visit and was received by King Abdullah II at King Hussein International Airport. The two leaders then witnessed the start of works on the railway, which the release describes as the largest project of its kind in Jordan’s railway sector.
The UAE delegation included Sheikh Khalifa bin Tahnoon bin Mohammed Al Nahyan, Chairman of the Abu Dhabi Crown Prince Court; Jassem Bu Ataba Al Zaabi, Chairman of the Department of Finance in Abu Dhabi and Managing Director and Group CEO of L’IMAD; and Sultan Mohammed Saeed Al Shamsi, UAE Ambassador to Jordan. Representatives of the companies that will build the line from both countries were also present.
The project in figures
The key parameters below come from the official release of 5 October 2026. AED amounts are converted at the fixed rate of AED 3.6725 per US dollar.
| Parameter | Figure |
|---|---|
| Investment | About USD 2.5 billion (AED 9.2 billion), joint UAE and Jordanian |
| Network length | 403 km |
| Route | Aqaba, mining and production sites, Maan Logistics Zone |
| Structures | About 55 bridges and 6 tunnels |
| Cargo | About 16 million tonnes of phosphate and potash a year |
| Jobs | About 5,000 in southern Jordan |
| Savings | About USD 40 million (AED 147 million) a year on phosphate and potash transport |
| Developer | Jordan-UAE Railway Company |
Who owns the Jordan-UAE Railway Company
The developer is a joint company. According to the release, its shareholders are:
- UAE side: L’IMAD Holding Company.
- Jordanian side: Jordan Phosphate Mines Company, Arab Potash Company, the Government Investments Management Company and the Social Security Investment Fund.
When the agreements were signed in April 2026, Jordan’s Minister of State for Economic Affairs Muhannad Shehadeh described the structure as a 50:50 joint venture, as reported by the Jordan Times. The company is chaired by Dr Mohammad Thneibat. Its Vice Chairman is Shadi Malak, who is also Chief Executive Officer of the Ports and Logistics Platform at L’IMAD Holding.
Malak said the UAE side is “bringing to this project the extensive expertise Etihad Rail, part of L’IMAD Holding Company, has accumulated in the development and operation of railway networks”. At home, Etihad Rail already runs freight services such as the direct Fujairah to ICAD rail freight route launched with AD Ports Group in September 2026. L’IMAD is the same Abu Dhabi holding that moved in August 2026 to buy out AD Ports Group at AED 6.25 per share.
What the railway is built to do
The official release says the line will connect the city of Aqaba with key mining and production sites and with the Maan Logistics Zone. It is planned as an integrated system for bulk cargo and containers moving between ports, production centres and inland logistics facilities, and it should take part of the heavy traffic off Jordan’s roads.
Phosphate and potash are the core of the business case. When the deal was signed in April, Jordanian officials gave the split as about 13 million tonnes of phosphate and 2.6 million tonnes of potash a year. The National described the two minerals as Jordan’s main exports: potash currently travels by lorry on a congested road from Ghor Al Safi to Aqaba, and phosphate moves on an old rail line from Al Shidiya to the port.
Jordanian officials also called the project the first step of a national railway network that would link Aqaba with neighbouring Arab countries and with Syrian and Mediterranean ports. No dates or budgets for those later stages were given.
From USD 2.3 billion to USD 2.5 billion: the timeline
- Late 2023. The UAE and Jordan sign a USD 5.5 billion (AED 20.2 billion) joint investment agreement in the presence of President Sheikh Mohamed bin Zayed Al Nahyan and King Abdullah II. The railway is an extension of this package.
- September 2024. Etihad Rail and Jordan’s Ministry of Transport sign four agreements for a USD 2.3 billion, 360 km railway. Jordan’s then Prime Minister Bisher Khasawneh said operations were expected to begin in 2030, according to AGBI citing the Jordan News Agency.
- 15 April 2026. Definitive agreements are signed at Qasr Al Watan in Abu Dhabi in the presence of Sheikh Mansour bin Zayed Al Nahyan and Jordanian Prime Minister Jafar Hassan, and the joint company is established. Officials expected financial close by early 2027 and about five years of construction.
- 5 October 2026. Groundbreaking in Aqaba. The official release now gives about USD 2.5 billion and a 403 km network.
The 5 October release does not explain why the figures are higher than in April (USD 2.3 billion and 360 km), and it does not set a completion date. The most recent official timeline we found is the April one: financial close by early 2027 and five years of construction.
What this means for companies in the UAE
The railway is being built in Jordan. It does not change any licence, customs, visa or tax rule for companies registered in the UAE, and nothing changes for current shipments until the line is in operation. The project is mainly relevant to three groups:
- Traders in fertilisers and minerals. The line targets the Jordanian export leg from the mines to Aqaba. Until it runs, existing road and rail routes and their costs stay as they are.
- Engineering, construction and logistics firms. The release names engineering, construction, maintenance, logistics, technology and supporting industries as areas of opportunity for local companies and the private sector. It does not include a tender schedule or procurement rules.
- Investors following L’IMAD and Etihad Rail. The railway is a cross-border rail asset for a holding that, according to the release, includes Etihad Rail.
Companies that trade with Jordan or supply regional infrastructure projects usually do so through a UAE entity. The choice of structure matters here: a free zone company suits international trading and re-export, while selling directly on the UAE local market requires a mainland licence. Our guide mainland vs free zone company in the UAE compares the two options.
A short checklist for a UAE company looking at Jordanian trade or rail-linked logistics:
- Check that the activities on your licence cover trading in fertilisers or minerals, or the logistics services you plan to offer.
- Decide whether you need a mainland licence, a free zone licence or both.
- Make sure your corporate bank account can handle cross-border payments in USD to suppliers and contractors abroad.
- Follow official announcements from the Jordan-UAE Railway Company and L’IMAD for procurement news, and do not rely on unofficial tender lists.
How Atlant Capital can help
Atlant Capital helps entrepreneurs set up trading and logistics companies in the UAE, on the mainland or in a free zone. We select the licence activities for commodity trading or freight services, prepare the documents and take the application through to the issued licence with our company setup service. After registration we help open a corporate bank account for payments to foreign partners and arrange residence visas for founders and staff.
Conclusion
On 5 October 2026 the UAE and Jordan started building the Aqaba-Al-Shidiyeh-Maan railway, a 403 km network worth about USD 2.5 billion (AED 9.2 billion). The Jordan-UAE Railway Company, with L’IMAD Holding on the UAE side and Etihad Rail expertise, plans a line for about 16 million tonnes of phosphate and potash a year with 55 bridges and six tunnels. The release gives no completion date; in April officials expected financial close by early 2027 and five years of construction.
Source: Abu Dhabi Media Office, The National.
FAQ
How much does the Aqaba-Maan railway in Jordan cost?
The Aqaba-Al-Shidiyeh-Maan Railway is a joint UAE and Jordanian investment of about USD 2.5 billion (AED 9.2 billion), according to the Abu Dhabi Media Office release of 5 October 2026. When the definitive agreements were signed in April 2026, the project was valued at about USD 2.3 billion for a 360 km line. The current figure covers a 403 km network.
Who is building the railway from Aqaba to Maan?
The developer is the Jordan-UAE Railway Company. Its shareholders are L’IMAD Holding on the UAE side and Jordan Phosphate Mines Company, Arab Potash Company, the Government Investments Management Company and the Social Security Investment Fund on the Jordanian side. L’IMAD says the project uses the experience of Etihad Rail, which is part of its group.
When will the Aqaba-Al-Shidiyeh-Maan railway be completed?
The groundbreaking took place on 5 October 2026, and the official release does not give a completion date. In April 2026 officials said financial close was expected by early 2027 and construction would take about five years. In 2024 Jordan’s then Prime Minister had named 2030 as the start of operations.
What will the Jordan-UAE railway carry?
The line is designed for about 16 million tonnes of phosphate and potash a year, which Jordanian officials split as about 13 million tonnes of phosphate and 2.6 million tonnes of potash. It will also handle bulk cargo and containers between the ports of Aqaba, production sites and the Maan Logistics Zone. The route includes about 55 bridges and six tunnels.
