In a bid to reshape trade routes linking the Gulf and South Asia, the United States, along with Saudi Arabia, India, and several other nations, has been engaged in discussions about a potential infrastructure deal. This ambitious plan involves the establishment of rail connections between Middle Eastern nations and the creation of port links with India, as reported by US officials.
While these talks have been ongoing for several months, their outcome remains uncertain, and it is unclear whether a concrete agreement will be reached in time for an announcement during the Group of 20 (G20) leaders meeting taking place this week.
President Joe Biden is currently en route to the G20 conference in New Delhi, India, where he is set to engage in discussions with Indian Prime Minister Narendra Modi and potentially meet with Saudi Crown Prince Mohammed bin Salman.
The proposed multinational infrastructure deal carries significant strategic implications, as it aligns with Biden’s goal to position the United States as an alternative partner and investor in developing countries, particularly in the Indo-Pacific region, as a countermeasure to China’s Belt and Road global infrastructure initiative.
These discussions are taking place alongside the broader diplomatic efforts of the Biden administration in the Middle East, including negotiations for Saudi Arabia to recognize Israel. Axios was the first to report on the potential infrastructure deal, which involves multiple nations.
Beyond its diplomatic implications, officials are hopeful that such an infrastructure agreement could lead to reduced shipping times, lowered costs, decreased diesel consumption, and the establishment of faster, more cost-effective trade routes.
During the G20 event, Saudi Arabia is also set to participate in an investment forum, with India’s Trade Minister Piyush Goyal and Saudi Minister of Investment Khalid al-Falih expected to be present. This forum will focus on potential Saudi investments in Rome’s new strategic fund, with a particular emphasis on energy, sustainability, supply chains, and sports, as Saudi Arabia seeks to expand its presence in Italy.
(With inputs from Reuters)
