Jordan's EU-Funded Water Deal Cements Its Commitment to the Abraham Market
As a key silent partner in the IMEC, Jordan is reaffirming its commitment to the Abraham Market.
Yesterday, Jordan signed its largest-ever infrastructure project with French investment bank Meridiam, in partnership with French companies SUEZ, VINCI Construction Grands Projets, and Cairo-based Orascom Construction. Valued at over $5 billion, the French-led water desalination deal will provide more than 300 million cubic metres of drinking water to Amman and Aqaba through a desalination plant and pipeline. The project is not just about water; it reinforces Jordan’s loyalty to the U.S. and Israel. With gas for the plant supplied by Israel, Jordan’s survival is further tied to Israeli stability, ensuring ongoing commitment to economic peace and the US-led regional order.
Navigating Water Scarcity in Jordan
Jordan is famously a severely water-scarce country, ranked the second in the world and number one in the region for water stress. Both geographical and political realities contribute to this critical issue, with the former potentially mitigated if not for Israel's control over vital water sources like the Jordan River and aquifers; Israel’s exploitation of the high-quality Upper Jordan River waters has dried up thousands of hectares of agricultural land in Jordan and Palestine, while dumping untreated settler sewage into the Lower Jordan River has destroyed farming land in the West Bank.
Against this backdrop, the US-brokered Jordan-Israel gas-for-water deal signed in 2021 aimed to address the water crisis by exchanging energy for 200 million cubic metres of desalinated water from Israel backed by the UAE. While Israeli officials touted it as the “most significant” bilateral development since the 1994 peace treaty, the deal saw increased contention in light of Israel’s war on Gaza and Lebanon which ultimately ended the talks. In contrast, yesterday’s French-led deal, although also US-brokered, will provide Jordan with an additional 100 million cubic metres of water and ultimately reduce water imports from Israel. According to Meridiam, a major shareholder in Queen Alia International Airport, the mega-desalination project “will increase the total annual available domestic water supply by almost 60%.” Powered by gas and renewable energy, it is built and financed by European companies. The 30-year concession agreement is set for completion in four years and will be handed over to Jordan after 25 years.
USAID: Another Front in Israel’s War
The U.S. International Development Finance Corporation (DFC) and USAID, a key advisor to the Jordanian government, are the primary brokers of this deal. The agencies are not just aid organisations; they are instrumental in shaping Jordan’s policies and strategies, especially in water management. USAID in particular has played a significant role, signing two agreements in September with the Ministry of Water and Irrigation worth over $60 million to reduce water loss, which included a $4.4 million contribution from the German Development Bank (KfW), further underscoring the Western backing of these initiatives. Given that Israel is already a primary energy and electricity supplier to Jordan, this further entrenches Jordan’s reliance on Israeli energy.
Previously, in Yemen, USAID has been facilitating financial restructuring efforts that serve the broader U.S. geopolitical agenda, particularly targeting the Houthi rebel group by reshaping Yemen’s financial system. During the Gaza war, USAID guaranteed loans to Israel, helping maintain its credit rating and preventing what otherwise would have been a domestic economic collapse. USAID isn’t just helping—it functions as a critical tool for U.S. power projection in the region, where water, money, and aid are weaponised instruments of influence.
Jordan Against the Axis of Resistance
During the Gaza war, Israel pressured Jordan by using water supplies as leverage to ensure it stayed in line. USAID also funded water infrastructure projects in Gaza, like desalination plants and pipelines, but much of it was destroyed in the war which led to the projects being used as tools of leverage against Hamas. By linking water access to regional security interests, Israel and its allies, including the US, reinforced the necessity for Jordan to maintain a stake in Israel's broader energy and geopolitical security, further entrenching Jordan’s role in the regional balance of power. As a key silent partner in the IMEC, Jordan is reaffirming its commitment to the Abraham Market. In the past year, Jordan has signed a deal to build the railway for the IMEC connecting the gulf with Israel and signed a free trade deal with the UAE.