Saudi Arabia and Jordan Plan Rail Link for Cross-Border Trade

Saudi Arabia and Jordan have agreed to build a railway linking the two Arab countries to boost cross-border trade and investment, according to the state Jordanian news agency Petra. The transport ministers from both kingdoms discussed the project at a virtual meeting on Monday, April 21, 2026, and ended talks with an agreement to form a joint committee for the establishment of the first major rail link between the two countries.

Project Scope and Strategic Focus

The planned railway is considered pivotal for strengthening economic integration and facilitating bilateral trade and supply chains, with discussions focused on mechanisms for developing the infrastructure. According to Petra, the project could include a link to Syrian railways. The move will help connect regional markets and improve transport-system efficiency.

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.

Trade and Investment Context

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, according to available data. Major investment sectors include cement, with Saudis owning three of the five Jordanian cement plants, which have 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 2025, with an import value of $612 million, Jordanian data shows. Jamal Banoun, manager of the Riyadh-based SMS economic consulting centre, commented on the significance of the rail project: “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.”

Complementary Phosphate Rail Infrastructure

Jordan’s phosphate industry, a major hard-currency earner, will receive a major boost in the coming years when a separate $2.3 billion rail project linking mines to export terminals is completed. 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 reported that 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. Firas Al-Rawashdeh, a well-known Jordanian economist and author, described the project’s significance: “This is a strategic project and a turning point in JPMC’s business history. 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. The company produced almost 11.5 million tonnes of phosphates in 2025. Jordan’s government controls nearly 42 percent of JPMC.

The company said last week that it had commissioned a feasibility study for the construction of a floating port to handle phosphate exports. Shadi Majali, chairman of Aqaba Special Economic Zone Authority, described the JPMC rail project as a “big leap” for Jordanian logistics: “The project will… boost exports, reduce transportation costs and improve the efficiency of supply chains.”