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    29-Mar-2026

Land corridors back in focus: Can Jordan become a regional trade hub - By Mohammad Alhadab, The Jordan Times

 

 

Global trade is undergoing a significant shift, with land corridors regaining prominence as a strategic alternative to maritime routes. This shift is largely driven by rising geopolitical risks, particularly around critical chokepoints such as the Strait of Hormuz, through which nearly 20 per cent of global oil trade passes.
 
Against this backdrop, Saudi Arabia’s recent announcement of a new logistics corridor linking Gulf ports to Jordan and further north signals a broader regional transition. It suggests that the Middle East is moving towards a reconfiguration of trade routes and supply chains, with greater emphasis on overland connectivity.
 
Jordan’s trade figures highlight the scale of the opportunity. In 2025, total exports stood at approximately JD9.55 billion, compared to imports of JD18.94 billion, resulting in a trade deficit of around JD9.39 billion. Export coverage remains at roughly 50 per cent.
 
Trade with Arab countries alone accounted for JD3.6 billion in exports, including JD1.15 billion to Saudi Arabia and JD895 million to Iraq. Meanwhile, imports from Arab countries exceeded JD5 billion, of which JD2.73 billion came from Saudi Arabia.
 
These figures underscore a key point: Jordan sits at the heart of an active regional trade network, yet it continues to function largely as a transit route, rather than maximising the economic value it could generate from this position.
 
Even a modest shift could be transformative. If Jordan were to capture just 20 per cent of these trade flows, a conservative estimate by international standards, this could translate into more than JD5.5 billion annually in logistics activity. With the addition of value-added services such as warehousing, re-exporting and light manufacturing, the economic impact could rise to between JD7 million and JD8 billion.
 
This brings us to the central question: Will Jordan remain a passageway, or can it position itself as a regional hub for trade management?
 
The distinction is critical. Transit generates limited returns, while a logistics hub creates investment, jobs and stronger economic multipliers.
 
The policy direction is clear. First, accelerating infrastructure development, particularly rail connectivity with neighbouring countries, alongside improving border efficiency and reducing clearance times. Second, establishing a regional logistics hub in Mafraq, given its strategic location connecting Saudi Arabia, Iraq and Syria, making it a natural aggregation and distribution point. Third, adopting investment models based on public-private partnerships, with potential involvement from major national institutions such as the Social Security Investment Fund to mobilise long-term financing and ease fiscal pressures.
 
What is unfolding is not merely a transport project, but a structural shift in regional trade patterns. Countries that act early will ultimately define their place within this emerging system.
 
Jordan has the advantage of geography, stability and strong regional relationships, reinforced by the King’s balanced and proactive diplomacy. The real challenge, however, lies in the speed of execution.
 
The conclusion is straightforward: the opportunity is not in allowing goods to pass through Jordan, but in turning that movement into economic activity within Jordan.
 
The question now is whether we are ready to make that transition, from corridor to hub.
 

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