Jordan and the United Arab Emirates signed an agreement on Wednesday to launch a rail project worth $2.3 billion, linking the Jordanian port of Aqaba to nearby mining regions.

The venture includes building a 360-kilometre (220-mile) railway network linking phosphate and potash mines in southern Jordan's Maan and Karak provinces with Aqaba by two main routes, as well as accompanying tunnels and bridges.

The signing ceremony was held in Abu Dhabi in the presence of Jordanian Prime Minister Jafar Hassan and Sheikh Mansour bin Zayed Al Nahyan, who is the UAE vice president and deputy prime minister.

The two countries had signed documents in September 2024 regarding the project. They said it will be up and running five years after they begin work on it, without specifying a start date.

The railway network aims to transport 16 million tonnes of phosphate and potash annually, UAE state media said.

According to a Jordanian cabinet statement, the venture is part of regional expansions linking the Port of Aqaba to the Mediterranean Sea via Syria and Turkey and strengthening connectivity with Saudi Arabia and the Gulf.

The project falls within a broader $5.5 billion investment package signed by the two countries at the end of 2023.

As part of the project, a new company has been established as a joint venture between Abu Dhabi's L'IMAD Holding Company and Jordanian stakeholders, UAE state media said.

Jordan is one of the world's major producers of phosphate and potash, globally ranking fifth and seventh in the two commodities, respectively.