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The United States and the European Union will support the development of a new ship and rail corridor linking India to the Middle East and beyond – an infrastructure project that passes through Saudi Arabia and the United Arab Emirates and could challenge China’s economic influence in the region.
The plan is expected to be launched on Saturday at an event on the sidelines of the G20 summit in New Delhi through a memorandum of understanding between leaders including U.S. President Joe Biden and Indian Prime Minister Narendra Modi, U.S. officials said.
Negotiations on such a deal between the countries involved have been going on behind the scenes for months but will now take place on a more formal basis. A senior Western official involved in the negotiations said no binding financial commitments had been made.
“(The corridor) will allow commerce, energy and data to flow from India through the Middle East to Europe,” U.S. deputy national security adviser Jon Feiner told reporters on Saturday.
For the United States, the project could counter Beijing’s growing influence in the region at a time when Washington’s traditional Arab partners, including the United Arab Emirates and Saudi Arabia, are deepening ties with China, India and other Asian powers.
A person briefed on the discussions said the plan could also support the Biden administration’s efforts to build on the recent normalization of ties between Israel and several Arab countries, including the United Arab Emirates, as it pushes Saudi Arabia to follow suit and formally ation relationship.
“China is a factor. The United States is also trying to refocus its attention on the region to appease traditional partners and maintain influence,” the person said.
European Commission President Ursula von der Leyen negotiated the EU’s role in the deal during talks with UAE President Mohamed bin Zayed Al Nahyan during a visit to Abu Dhabi on Thursday, EU officials said .
Officials added that the cooperation is a core part of the EU’s efforts to deepen trade and investment ties with Gulf states, particularly in response to Russia’s war in Ukraine.
The EU has set aside up to 300 billion euros in overseas infrastructure investment spending between 2021 and 2027 through its Global Gateways project, which was launched in part to counter China’s Belt and Road Initiative and defend Europe’s position among major trading partners. Benefit.
Saudi Arabia, the world’s largest oil exporter, and the United Arab Emirates, the Middle East’s main financial hub, are both seeking to establish themselves as key logistics and trade hubs between East and West.
However, the Arab world’s ambitious cross-border infrastructure projects, including a planned 2,117-kilometer railway network connecting the six Gulf Cooperation Council members (Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain), have historically received little attention. More than a decade after it was built, it remains only partially built.
Fenner said the corridor’s development is in line with the Biden administration’s push to “cool down” and “de-escalate conflict” in the region while increasing “connectivity.” But the project’s principles are also intended to contrast with the type of infrastructure funded by China’s Belt and Road Initiative, whose funding has been criticized for being opaque and leading poorer countries into debt traps.
“We think this will be highly attractive to the countries involved and globally because it is of high standards and is not mandatory. . . . We don’t want to impose anything on anyone,” Fenner said.
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