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The European Union is looking to create an economic corridor with Gulf countries, especially Saudi Arabia, for what Europe sees as an increase in trade and investment cooperation.
This comes as the first Gulf-European summit was held in Brussels, with the attendance of Saudi Crown Prince Mohammed bin Salman (his first visit to Brussels as Crown Prince), Emir of Qatar Tamim bin Hamad, and representatives from other Gulf countries. The summit addressed Middle Eastern and Horn of Africa issues, as well as clean and renewable energy, trade partnerships, and investment flows.
European media covered Prince Mohammed bin Salman’s attendance, seeing it as his return to the Western international scene after years of European rejection following the 2018 assassination of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul, Turkey, in addition to concerns over human rights violations and the imprisonment of political dissidents in the kingdom.
On the other hand, the recent European-Saudi rapprochement has been read as an effort by Europe to attract the Gulf oil state, which is an ally of Russia within the “OPEC+” group, with reports suggesting it is an attempt by Europe to shape a stronger condemnation of Moscow in its war on Ukraine.
There are Gulf disagreements over whether trade with the EU should be handled as a Gulf bloc or through bilateral deals between each Gulf state and the EU.
Israel as a Potential Partner in the Corridor, with Energy at the Forefront of the Project
The mechanism for building the European corridor with Gulf states or its points of focus has not been specified, but the European Commission stated that the 27-member union seeks to build an economic corridor to increase trade in renewable energy and boost trade exchanges with the Gulf. It expressed a desire for joint efforts “to ensure the security we all need for economic growth.”
There has been cooperation between the two blocs for the past 25 years, but this is the first summit aimed at developing closer cooperation amid geopolitical conditions that Europe considers difficult, particularly the Russia-Ukraine war and the Israeli war on Gaza and Lebanon.
Talk of an economic corridor with the Gulf countries refers to efforts to develop a corridor for ships and railways linking India with the Middle East and the Mediterranean, which was planned last year (2023) between U.S. President Biden, Indian Prime Minister Narendra Modi, and Saudi Crown Prince Mohammed bin Salman.
The proposed Indian corridor is expected to extend from the Arabian Sea in India to the UAE, then to Saudi Arabia, Jordan, and Israel before reaching Europe. It would include a new undersea cable and infrastructure for energy transmission, according to Shabait’s follow-up.
The corridor that Europe seeks with the Gulf countries is inseparable from passing through Israel, considering it a partner in the project, which paves the way for expanding investment in clean energy.
The European Union considers the energy file one of its top priorities, especially after several European countries tried to abandon Russian gas supplies following the Ukraine war, leading to energy crises in Europe for more than two years since February 2022.
Gulf countries, in turn, possess vast reserves of oil and gas, which Europe considers making them a key global player in this field.
For example, Saudi Arabia aims to raise its gas production capacity by 63% by 2030, to reach 21.3 billion cubic feet per day, compared to about 13.5 billion cubic feet currently. Part of this gas will be used to meet domestic energy needs, while the rest is expected to be exported as hydrogen or liquefied natural gas.
Saudi Arabia also plans to make renewable energy sources account for about 50% of its energy mix by 2030, with an emphasis on boosting exports of electricity generated from renewable energy. The European-Gulf program is seen as one of the ways to increase exports from Saudi Arabia to Europe.
European Council President Charles Michel visited Saudi Arabia last August and met with the Crown Prince to prepare for the European-Gulf summit, officially inviting him to attend.
Michel said the summit would send signals to the European Union and the private sector that there are huge potential opportunities for further economic cooperation with Saudi Arabia, particularly through opportunities available under the “Vision 2030.”
Source: Agencies