India, Saudi and EU plan multibilllion-dollar corridor

12 September 2023

India, Saudi Arabia, the UAE, the US and the EU have signed a memorandum of understanding (MoU) toward building an economic corridor linking these countries' railways, ports and electricity pipelines.

"The India-Middle East- Europe Economic Corridor (Imec) is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe," a statement by the US government published by the White House said on 9 September.

The US and its allies announced the deal during the G20 summit held in New Delhi. Other Imec participants include France, Germany and Italy.

"The participants intend to meet within the next sixty days to develop and commit to an action plan with relevant timetables," the White House said.

The Imec is expected to have two separate corridors: the east corridor connecting India to the Gulf and the northern corridor connecting the Gulf to Europe.

The statement added: "It will include a railway that, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime and road transport routes – enabling goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.

"Along the railway route, participants intend to enable the laying of cable for electricity and digital connectivity, as well as pipe for clean hydrogen export. This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts."

The economic corridor is seen as an alternative to China's expansive Belt and Road Initiative, which also aims to build connectivity and stimulate trade activities between participating economies.

Photo: Pixabay

  

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Jennifer Aguinaldo
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