Gulf News - At the recent G–20 summit in India, the declaration of a new economic and trade corridor caught everyone’s attention.

At the recent G–20 summit in India, the declaration of a new economic and trade corridor caught everyone’s attention.

With an emphasis on logistics and smooth and safe transportation, the economic benefits for stakeholders will be manifold. The establishment of new rail corridors between Asia and Europe via Saudi Arabia will allow passengers and heavy goods movement. The passage also aims to build new pipelines to transfer renewable energy and data connectivity.

The end goal of the new corridor will allow these regions to secure their supply chains, increase trade capacity, and ensure a more trust-friendly and secure economic relationship.

For India and Europe, the UAE will continue to serve as the transit point. While the exact details regarding the actual country-wise contribution and set-up are not yet known, we look at a few sectors and stocks that could benefit from the proposed corridor.

The end goal of the new corridor will allow these regions to secure their supply chains, increase trade capacity, and ensure a more trust-friendly and secure economic relationship.

For India and Europe, the UAE will continue to serve as the transit point. While the exact details regarding the actual country-wise contribution and set-up are not yet known, we look at a few sectors and stocks that could benefit from the proposed corridor.

Existing stocks that could benefit include International Holding Co., Fujairah Cement Industries, Orascom Construction and Emsteel Building Materials.

Logistics, air freight and defense

Other sectors

India and Europe are big consumer markets with sizeable populations. It implies a considerable scope for consumer utilities, F&B, and leisure and hospitality operators. Stocks to watch out for include the National Corp for Tourism and Hotels, Abu Dhabi National Hotels and Agthia Group.