Saudi Arabia and Jordan plan rail link to boost business

Saudi Arabia and neighbouring Jordan have agreed to build a railway linking the two Arab countries in an effort to boost cross-border trade and investment.

The transport ministers from the two kingdoms, which maintain strong political and economic ties, discussed the project at a virtual meeting on Monday, the state Jordanian news agency Petra reported.

The talks ended in an agreement to form a joint committee for the establishment of the first major rail link between the two countries, Petra said, adding that the project could include a link to Syrian railways.

Discussions focused on mechanisms for developing the planned railway, considered pivotal for strengthening economic integration and facilitating bilateral trade and supply chains. The move will help connect regional markets and improve transport-system efficiency, it said.

Jordanian transport minister Nidal Qatamin said the plan would contribute to “solidifying Jordan’s position as a regional logistics hub”.

His Saudi counterpart, Saleh bin Nasser Al-Jasser, said the project would be submitted to relevant authorities in Saudi Arabia, Jordan and Syria for approval.

Saudi Arabia is the largest foreign investor in Jordan, accounting for nearly 16 percent of total capital flows of around JD2.02 billion ($2.8 billion) in 2025.

Major investment sectors include cement. The Saudis own three of the five Jordanian cement plants, with a total capacity of 7.5 million tonnes per year.

Saudi Arabia was also the second-largest market for Jordanian products in the first half of last year, with an import value of $612 million, Jordanian data shows.

“A large part of the commercial exchanges between Saudi Arabia and Jordan takes place via trucks crossing their border… I think this rail project will give trade a strong push,” said Jamal Banoun, manager of the Riyadh-based SMS economic consulting centre.

Meanwhile, Jordan’s phosphate industry, a major hard-currency earner, will receive a major boost in the next few years when a $2.3 billion rail project linking mines to export terminals is completed, experts said.

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The state-controlled Jordan Phosphate Mines Company (JPMC) and the Abu Dhabi government signed an agreement last week for the construction of a rail link connecting JPMC’s three main mines across Jordan to southern Aqaba port, the company’s main export outlet.

Petra said the planned JPMC railway will have the capacity to transport nearly 16 million tonnes of phosphate and potash annually to Aqaba on the Red Sea.

“This is a strategic project and a turning point in JPMC’s business history,” said Firas Al-Rawashdeh, a well-known Jordanian economist and author.

“The project will lead to a boom in the phosphate sector as it will cut costs, upgrade efficiency and allow for a big rise in exports.”

JPMC is one of the world’s 10 largest phosphate exporters and plans to expand production further, expecting steady growth in foreign markets.

The company said last week that it had commissioned a feasibility study for the construction of a floating port to handle phosphate exports.

The JPMC rail project represents a “big leap” for Jordanian logistics and will turn Aqaba into a major business hub, said the chairman of Aqaba Special Economic Zone Authority, Shadi Majali.

“The project will… boost exports, reduce transportation costs and improve the efficiency of supply chains,” he said.

Jordan’s government controls nearly 42 percent of JPMC, which produced almost 11.5 million tonnes of phosphates in 2025.