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Egypt to Lose Most from Biden Project Linking India to Europe through Persian Gulf and Israel

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Israel Reveals Egypt as a Key Loser in the “Biden Project”

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Introduction

Israeli media and prominent think tanks in Tel Aviv have unveiled that Egypt will be among the major losers of the new “Biden Project.” This ambitious initiative aims to connect India to Europe through the Persian Gulf and Israel.

Egypt’s Losses

According to Dr. Yoel Guzansky, head of the regional policy department at the Israel Research Institute for Security and Strategic Studies (INSS), Egypt, which controls the Suez Canal, is set to suffer significant losses from this project. The Suez Canal is a crucial pathway for global trade, accounting for 10% of total world trade and approximately 7% of oil traffic. The project’s aim to reduce Europe and India’s dependence on the Suez Canal poses a serious threat to Cairo’s economy.

Impact on Saudi Arabia and NEOM

The participation of Saudi Arabia in the “Biden Project” is closely linked to NEOM, the “City of the Future” being developed by Saudi Crown Prince Mohammed bin Salman. NEOM’s location adjacent to the Strait of Tiran, the entrance to the Red Sea, could potentially bring significant benefits to the Israeli city of Eilat as well.

Similar Projects and Time Reduction

This project is not unprecedented, as land transportation of goods has been gaining momentum in recent years. For instance, cargo transport by rail from Turkey to China, spanning approximately 8,693 kilometers, began in December 2020. Another project, the North-South corridor, was initiated by Russia and Iran to transport goods from Moscow to Mumbai, reducing transport time from Russia to India by around ten days compared to the Suez Canal route.

Overview of the Project

US President Joe Biden announced this economic corridor at the G20 conference, intending to connect India, Europe, the Persian Gulf, and Israel. The project is expected to commence from the port of Piraeus in Greece, traveling by sea to the Israeli port of Haifa. Subsequently, rail connections will link Israel and the Gulf countries, while ships will transport goods from the port of Jebel Ali to Mumbai. Additional roads to neighboring countries like Bahrain and the Sultanate of Oman are also anticipated.

Potential Challenges and Israeli Perspectives

The success of the plan remains uncertain due to Israel’s historical difficulties in meeting infrastructure project deadlines. Moreover, the political situation in Israel, particularly Prime Minister Benjamin Netanyahu’s need for broad support, could hinder the project’s progress. The port of Haifa is expected to be a significant beneficiary, particularly since it was acquired by the Indian Adani group. Other potential beneficiaries include the Chinese company SIPG, which owns a port in the Persian Gulf.

Conclusion

The “Biden Project” presents both opportunities and challenges for the countries involved. While it has the potential to reshape regional trade and reduce dependence on existing routes, its success depends on various factors such as political support, financial investment, and timely execution.

Source

Israeli media

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