As per some US officials, India, Saudi Arabia and the US, along with the UAE and Europe, are discussing a possible infrastructure deal. This deal has the potential to reshape the trade between the Gulf and South Asia, with plans to establish railway connections between Middle Eastern nations and establish ports for connectivity to India, a Reuters report said.
However, a concrete result of the talks may or may not be reached in time for an announcement on the sidelines of the G20 Summit in India this week.
The talks between all these nations have been going on for months but are fluid, Reuters cited a source as saying.
Joe Biden’s national security advisor, Jake Sullivan, refused to comment on any potential announcement at the G20 Summit. However, he said that the deal is an initiative that the US and its partner countries are invested in, a Bloomberg report said.
“We believe that connectivity from India, across the Middle East to Europe is incredibly important and will bring a significant number of economic benefits, as well as strategic benefits, to all of the countries involved,” he said.
Earlier this year, Sullivan travelled to Saudi Arabia for talks on the topic. Indian and UAE representatives had also joined the discussions.
Leaders to meet at G20 Summit in India
US President Joe Biden is on his way to India to attend the G20 conference in New Delhi. Here, he will be meeting up with Prime Minister Narendra Modi and could also have discussions with Saudi Crown Prince Mohammed bin Salman.
Why does the deal matter?
The deal is among the initiatives that the US has been pushing in the Middle East as China’s influence in the region surges, Axios reported. The Middle East is a key part of China’s Belt and Road vision.
This coincides with the Biden Administration’s efforts to finalise its diplomatic push for a mega-deal with Saudi Arabia. This mega-deal could potentially encompass a normalisation deal between the kingdom and Israel before the 2024 campaign occupies President Biden’s agenda.
Besides the vital diplomatic implications, the officials hope that such an infrastructure deal between these countries could help in the reduction of shipping times, cost, the use of diesel, making trade faster and cheaper, Reuters said.
Under the deal, Arab countries in the Levant and the Gulf are expected to be linked via a network of railways which will also connect to India through seaports in the Gulf, Axios reported citing sources.
Israel too could join the railway project and push its reach to Europe via Israeli seaports if Saudi Arabia and Israel normalise their relations in the future, the report added.