The G20 summit held in India announced the creation of the Economic Corridor, which will extend across the Arabian Sea from India to the UAE, then pass through Saudi Arabia, Jordan, and Israel, and finally reach Europe. This highly ambitious project has attracted considerable regional and international attention. It is expected to drive major international strategic changes. US President Joe Biden said during the announcement that it would be "game-changing." Others consider it a competitor to China's Belt and Road initiative, which covers more than seventy countries.
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The new project mainly connects recharging ports. Saudi Crown Prince Mohammed bin Salman said at the Saudi-Indian Investment Forum that it would achieve the common interests of "our countries by enhancing economic connectivity." He said it would contribute to the development of infrastructure, including railways, port connections, improved flow of goods and services, and enhanced trade exchange between the involved parties. It would also extend pipelines for exporting and importing electricity and hydrogen to boost global energy supplies, in addition to data transmission cables through an efficient and reliable cross-border network.
A document prepared by the President of the European Commission, Ursula von der Leyen, described the project as a "green and digital bridge across continents and civilizations." Europe and the US strongly support it. President Biden said it offered "endless opportunities" for the involved countries and greatly facilitated clean energy exports. He said it was among the decisions that would have a considerable impact on the global future.
The project is based on the idea of regional economic integration. It is part of the Partnership for Global Infrastructure and Investment (PGII), a massive American project announced last year, with total investments planned to reach $600 billion by 2027. It focuses on sectors addressing the climate crisis. The exchange of new energy products is one of its key pillars.
The Economic Corridor project includes high-speed data cables, electricity transmission cables, and a hydrogen pipeline – elements of paramount importance in the strategic thinking of European countries, which are still grappling with the disruption of Russian gas supplies due to the Ukraine conflict.
Some observers link Chinese President Xi Jinping's absence from the G20 summit in India to the announcement of the new project, which they see as a competitor to the Chinese initiative. They believe that strong American support for the project is primarily connected to the US' desire to stop Chinese expansion and encourage India, a strong strategic competitor deemed capable of limiting this expansion.
India aspires to have a leading role in the upcoming global system, aligning with its growing energy product needs and desire to ensure markets for its exports without obstacles, especially in light of the rising threats associated with maritime confrontations, straits, and more.
This ambitious project is a common ground for cooperation and integration between Gulf and Indian plans and strategies, as both parties enjoy a rising strategic partnership. It also aligns with Saudi Arabia's specific plans, including the National Transport and Logistics Strategy launched by Crown Prince Mohammed bin Salman in 2021. Furthermore, it leverages Saudi Arabia's massive investments in renewable energy, economic zones, and information infrastructure development based on the availability of undersea cables and data centers.
Economics serves as the gateway to politics and ensures plans for trade exchange, supply chains, opening new markets, and energy exchange – all pillars of strong political relations. If we look at the Chinese Belt and Road initiative, it connects China to Western Europe through Central Asia and Russia, which has become challenging for Europeans to accept, regardless of Sino-American competition concerns.
Hence, we can understand the intense European enthusiasm for the new Indian project, especially in light of its basis of trade partnerships rather than offering concessional loans, as is the case with many points of the Chinese project.
Additionally, the Indian project passes through two Gulf states, providing them and other neighboring countries with opportunities to connect to the trade and exchange network it offers. This encourages investments and development in these countries.
Perhaps this project excels in this specific aspect compared to its Chinese counterpart, which relies on specific maritime points of convergence with several Gulf countries but does not include a key point like Saudi Arabia in its plans.
The ambitious Economic Corridor project holds gains for all parties involved. It can effectively chart a new geopolitical map for alliances, as the interests of these parties are more intertwined than ever before, which in turn reflects on their regional and international policies and orientations.
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