Global leaders announced a multinational rail and ports deal linking the Middle East and South Asia on Saturday on the sidelines of the G20 summit in New Delhi.
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Prime Minister Benjamin Netanyahu said in a statement late on Saturday night at the state of Israel "will be a central junction in this economic corridor."
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Biden said the project would bridge ports across two continents and lead to a 'more stable, more prosperous and integrated Middle East.'
(Photos: Alex Kolomoisky, Getty Images)
"Our railways and ports will open a new gateway from India, through the Middle East, to Europe, and back – from Europe to India via Jordan, Saudi Arabia and the UAE," Netanyahu said in a statement.
The pact comes at a critical time as U.S. President Joe Biden seeks to counter China's Belt and Road push on global infrastructure by pitching Washington as an alternative partner and investor for developing countries at the G20 grouping.
Biden said it was a "real big deal" that would bridge ports across two continents and lead to a "more stable, more prosperous and integrated Middle East."
The deal will benefit low and middle-income countries in the region, and enable a critical role for the Middle East in global commerce, Jon Finer, the U.S. deputy national security adviser, told reporters at the bloc's annual summit in New Delhi.
Netanyahu said that: "Several months ago, the US contacted us regarding the realization of this historic opportunity. Since then, it has held urgent diplomatic contacts in order to bring about today's breakthrough."
He added that the project's "vision reshapes the face of our region and allows a dream to become reality. The initiative includes the construction of railways, the laying of a hydrogen pipeline, the energy of the future, the laying of fiber optic communications cables, the laying of electricity cables and more infrastructure."
It aims to link Middle East countries by railway and connect them to India by port, helping the flow of energy and trade from the Gulf to Europe, U.S. officials have said, by cutting shipping times, costs and fuel use.
A memorandum of understanding on the India-Middle East-Europe Economic Corridor, or IMEC, was signed by the European Union, India, Saudi Arabia, the United Arab Emirates, the U.S. and other G20 partners.
IMEC is envisioned to consist of two separate corridors with an east corridor connecting India to the Arabian Gulf, and a northern corridor connecting the Arabian Gulf with Europe, according to the MOU.
Along the railway route, participants intend to lay cable for power and data lines, as well as pipeline for hydrogen derived from renewable energy for use in power generation.
The move comes amid U.S. efforts for a broader diplomatic deal in the Middle East that would have Saudi Arabia recognize Israel.
From the U.S. viewpoint, Finer added, the deal helps "turn the temperature down across the region" and "address a conflict where we see it."