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Saudi Arabia and the US signed a memorandum of understanding to establish the India – Middle East – Europe Economic Corridor (IMEC). The Crown Prince Mohammed bin Salman made the announcement on the sidelines of the G20 summit held in New Delhi.
Here’s everything you need to know:
The MoU was signed by Saudi Arabia, the US, the EU, India, UAE, France, Germany, and Italy. It states that the IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Gulf, and Europe.
The IMEC will be comprised of two separate corridors, the east one connecting India to the Gulf and the northern one connecting the Gulf to Europe.
It will also include a railway that “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,” according to the MoU.
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“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 MoU stated.
The participating countries expect the corridor to “increase efficiencies, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions – – resulting in a transformative integration of Asia, Europe and the Middle East.”
Saudi Arabia’s state news agency SPA reported: “This project aims to facilitate the transit of renewable electricity and clean hydrogen via transmission cables and pipelines as well as constructing rail linkages. It is also intended to enhance energy security, support efforts for the development of clean energy, promote digital economy through digital connectivity and transmission of data via fiber cables, and promote trade and transport of goods by rail and through ports.”
Saudi analyst Ali Shihabi said on platform X: “This fits in with Saudi plans to develop the Kingdom into a logistical hub serving West Asia, Europe, ME and East Africa.”
The White House said in a statement: “The transformative partnership has the potential to usher in a new era of connectivity from Europe to Asia with a railway, linked through ports, connected by the Middle East. This will create novel interconnections to facilitate global trade, expand reliable access to electricity, facilitate clean energy distribution, and strengthen telecommunications links.”
According to the White House fact sheet, the founding partners of the project intend to work with international partners and the private sector to: “Connect India to Europe—linked by a railway line and existing ports through the UAE, Saudi Arabia, Jordan, and Israel—that will generate economic growth while incentivizing new investments and the creation of quality jobs.”
Additionally, the founding countries will aim to: “Connect two continents to commercial hubs and facilitate the development and export of clean energy. Support existing trade and manufacturing synergies and strengthen food security and supply chains. And Link energy grids and telecommunication lines through undersea cables to expand reliable access to electricity, enabling innovation of advanced clean energy technology and connect communities to secure and stable Internet.”
Israel’s Prime Minister Benjamin Netanyahu hailed the announcement of the corridor as a “major development”, according to the Times of Israel. He described the initiative as “a cooperation project that is the greatest in our history” and one that “takes us to a new era of regional and global integration and cooperation, unprecedented and unique in its scope.”
He added that the new corridor “will bring to fruition a years-long vision that will change the face of the Middle East and of Israel.”
Read more:
MBS announces MoU for economic corridor linking Saudi, India, Middle East and Europe
Saudi Arabia and US sign MoU for intercontinental green corridors
G20: Indian PM Narendra Modi receives Saudi Crown Prince MBS with warm embrace
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