Economists said the Green Corridors project will link India, the Middle East, and Europe, boost economic relations, increase efficiency, ease trade exchange, and develop supply chains and logistics.
It will also contribute to revitalizing and developing new economic activities along the corridor.
On Saturday, Saudi Crown Prince Mohammed bin Salman announced a memorandum of understanding to establish intercontinental "green corridors" linking India, the Middle East, and Europe.
Economic advisor and head of the Joatha Consulting Center, Ihsan Buhulaiga, said the economic corridor represents a global partnership with multiple pillars for communication linking India, the Middle East, and Europe.
Buhulaiga explained to Asharq Al-Awsat that the project consists of two economic corridors: an eastern one connecting India with the Arabian Gulf region and a northern one linking the Arabian Gulf region with Europe.
The project will connect the three regions through advanced communication infrastructure, strengthening the economic relationship and enabling access to goods, energy, and data for individuals and companies.
The expert pointed out that the project includes integrating several railway lines and ports, starting from India and passing through Saudi Arabia, the Arabian Gulf, and Europe, which leads to the development of supply chains and logistics services and the smooth transportation of goods between these countries.
It will also contribute to the development of energy infrastructure and, enable the production and transportation of green hydrogen, enhance communication and data transfer by constructing a new cable that extends under the sea and connects the countries.
He confirmed Saudi Arabia's readiness and support for such projects, pointing out that the Kingdom launched, in mid-2021, the National Transport and Logistics Strategy.
The Kingdom is on its way to becoming the largest producer of green hydrogen, with Neom preparing to produce up to 600 tonnes per day of carbon-free hydrogen by the end of 2026.
Economic analyst and logistics expert Fahd al-Thunayan believes that the economic corridor will support the logistics network sector, the backbone of economies.
Thunayan described investments in transportation infrastructure as huge investments that need the support and solidarity of governments, explaining that the world needs to establish such corridors for the global economy.
Converting to renewable energy comes within the framework of the economic corridor project, said the expert, noting that it would contribute to supporting the private sector.
He noted that it would help the sector move forward with these projects, raise their economic feasibility, create new and extensive opportunities for improvement, sustainability, and development, and enhance cooperation between countries to serve the common interests of the global economy.
Furthermore, the former senior adviser to the Saudi Ministry of Energy, Mohammad al-Sabban, told Asharq Al-Awsat that the economic corridor is essential for the region and all countries it will pass through.
The project will link trade between regions and the countries it will pass through, Sabban said, adding that it would promote trade exchange and revitalize new economic activities along the economic corridor.
He explained that the project would help develop and promote electricity and clean hydrogen transmission through infrastructure cables and lines and in the construction of railways linking the areas it will pass through.
It would also help develop the digital economy through connectivity and digital transmission of data through fiber optic cables.
