G20 could see India-UAE-Saudi mega-railway deal inked with Israel links also in the pipeline

A mega transport deal linking India to the Gulf region, and possibly Israel, is expected to be announced on Saturday at the G20 summit in New Delhi, following intense US-led negotiations in Riyadh this week.

A memorandum of understanding between India, Saudi Arabia, and the UAE could be signed in India over the weekend, Axios reported, to kick-start a rail network linking the Gulf region, and shipping lanes connecting India to the GCC ports.

The project could even bring in Israel and Arab Levant countries, but this hinges on efforts to have Israel and Saudi Arabia establish ties. Talks between Saudi, UAE, Indian officials, and US National Security Adviser Jake Sullivan, took place in Riyadh this week on this issue.

While Sullivan admitted there's still work to be done on the proposed normalisation deal, one result of the talks appears to be an agreement to push ahead with the transport infrastructure project.

"The project was one of the main issues discussed at that meeting, which launched a series of follow-up negotiations led from the US side by Biden's senior adviser for energy and infrastructure Amos Hochstein," two sources told Axios.

The GCC region is a vital source of natural resources for New Delhi, while Indian goods are popular in Gulf markets and the infrastructure project could see trade boosted between the two regions, as China looks to expand its influence in Asia via the Belt and Road Initiative.

Washington has been concerned by China's entry into the Middle East with Beijing agreeing a range of business and military deals with traditional US allies such as Saudi Arabia and the UAE.

Such an initiative could curb China's growing economic might in the Middle East and reaffirm Washington's commitment to the region, after years of alleged neglect by the US.