shahennews
Over the past years, Jordanian-Emirati relations have seen remarkable advancements across various sectors, particularly in the economic and investment realms, notably in the energy sector.
These robust relations are underpinned by numerous agreements, memoranda of understanding, programs, and protocols aimed at broadening the scope of collaboration between the two countries. Their impact is evident in the substantial increase of Emirati investments in the Kingdom, reaching approximately JD16 billion, according to data from the Ministry of Investment.
The latest positive developments in the bilateral ties occurred during the recent visit of His Majesty King Abdullah II to the UAE, where he met with His Highness Sheikh Mohammed bin Zayed Al Nahyan. Both leaders expressed their pride in the historical and strong relations between Jordan and the UAE, emphasizing their commitment to enhancing economic partnerships and investment cooperation across various sectors.
According to the Ministry of Energy and Mineral Resources, Emirati investments in the Jordanian energy sector have grown significantly in recent years, encompassing both government and private sector projects.
In the private sector, the Jordan Wind Project Company in Tafileh is a noteworthy venture, completed in September 2015. This project, operating commercially, has a generation capacity of 117 megawatts. The Emirati company, MASDAR, holds a 31% stake in the company, with an investment of $90 million out of the total project investment of $290 million.
Another substantial private sector project is the solar energy project by Abu Dhabi Future Energy Company, operational since December 2020. Valued at $240 million and 100% Emirati-owned, it has a generation capacity of 200 megawatts.
In government projects, the strategic Sheikh Zayed Solar Power Complex in Al Quwaira, Aqaba, is a vital investment owned by the Jordanian government. It has a generation capacity of 92 megawatts and an annual production of 211 gigawatt-hours.
The project, operating commercially since July 18, 2018, covering an area of 3,000 dunums with 328,320 solar panels, aims to enhance Jordan’s renewable energy capacity, contribute to the electricity supply for over 50,000 homes, reduce dependence on imported energy, cut costs of importing oil derivatives, and create employment opportunities in its various phases.
Another governmental project is Amman’s strategic facilities in the Maduna area, funded by a $210 million grant from the Abu Dhabi Development Fund. It aims to secure the necessary storage capacity for the Kingdom’s strategic reserves of oil derivatives, with a total capacity of 312,000 tons.
Moreover, the Ministry of Energy highlights the various memoranda of understanding between the two countries. In November 2022, the ministry signed an agreement with MASDAR to explore the possibility of investing in and developing wind energy projects with a capacity of 2 gigawatts.
The most recent memorandum, witnessed by His Majesty the King and the UAE President, pertains to a UAE grant enabling the Jordanian government to implement a package of priority development projects in the energy, tourism, education, digital transformation/administrative updating sectors, and support the general budget with a value of $400 million dollars. One of these projects includes the construction of a gas pipeline network for three developmental and industrial regions, with an investment of $70 million.
According to the ministry, the project aims to reduce production costs and enhance the competitiveness of Jordanian industries. This is achieved by supplying industrial zones such as the Mwaqar Industrial City, the Rawda Industrial City in Ma’an Governorate, and the development zone in Mafraq with Egyptian gas. The goal is to alleviate the energy costs for national industries, thereby boosting the competitiveness of local products in both domestic and export markets. These objectives are based on comprehensive studies conducted for this purpose.
//Petra// RZ
