Egypt affirms that resolving the Palestinian issue is key to the economic corridor between India, the ME & Europe

Resolving Palestinian issue is key to the economy between India, Middle East & Europe                    

Egypt incurred losses exceeding $9 billion due to Houthi attacks in the Red Sea.

Egyptian Foreign Minister Badr Abdel Aty said last Friday that resolving the Palestinian issue is essential to achieving progress in the US-backed transportation project linking India to Europe via the Middle East via sea and rail routes.

The project, known as the India-Middle East-Europe Economic Corridor, was announced on the sidelines of the G20 summit of major economies in September 2023 and was seen as a US alternative to China's Belt and Road Initiative.

A month after the announcement, war broke out in the Gaza Strip following an attack launched by the Palestinian resistance movement Hamas on Israel on October 7, 2023, according to Reuters. "We have to keep in mind that communication is very important in the context of the final settlement of the Palestinian issue," Abdel Aty told reporters during a visit to New Delhi. He added that he discussed the "India-Middle East-Europe Economic Corridor" project during his talks with his Indian counterpart, explaining that Egypt is open to being part of the project.

The corridor would extend from India across the Arabian Sea to the UAE, passing through Saudi Arabia, before reaching Europe via Jordan and Israel. India and the UAE signed a framework agreement for the project last year. Abdel Aty told reporters, "The India-Middle East-Europe Economic Corridor is an important project, but we have to understand what has happened over the past two years... that if there is an escalation, it could hinder cooperation and communication."

Billions in Losses

He added that Egypt has incurred losses of more than $9 billion since the armed Houthi group in Yemen began its attacks on ships in the Red Sea, which it claims were carried out in solidarity with the Palestinians. "We are paying a heavy price. We used to receive at least 75 ships transiting the Suez Canal daily in both directions. Now, there are no more than 25, but a maximum of 50, which means a decrease of at least 60%," he continued.

Abdel Aty arrived in India on Thursday for a two-day visit for bilateral talks, during which he also met with Prime Minister Narendra Modi. He said he will meet with executives from Indian companies as part of Egypt's efforts to attract more Indian investment. "We have an industrial zone for China in this region, and for Russia (as well), and we are encouraging an Indian industrial zone along the Suez Canal Economic Zone," he added.