The project will also extend pipelines for electricity and hydrogen trade to enhance global energy supply security, in addition to high-efficiency and reliable cross-border data transmission cables, he added.
The project is backed by Washington and the Group of Seven (G7) under their Partnership for Global Infrastructure and Investment (PGII).
"This is a really big deal," Biden said in his remarks.
It will contribute to a "more stable, prosperous and integrated" Middle East, the American president said.
The IMEC's east corridor will connect India to the Arabian Gulf and the northern corridor will connect the Gulf region to Europe.
"The United States and our partners intend to link both continents to commercial hubs and facilitate the development and export of clean energy; lay undersea cables and link energy grids and telecommunication lines to expand reliable access to electricity; enable innovation of advanced clean energy technology; and connect communities to secure and stable Internet," the White House said in a statement.
Along the railway route, the partner countries "intend to enable the laying of cable for electricity and digital connectivity, as well as a pipe for clean hydrogen export," the MOU noted.
Gulf infrastructure boom
The India-Middle East-Europe Economic Corridor fits well with the kingdom's rail expansion and infrastructure growth as part of Vision 2030.
Saudi Arabia, the world's largest oil exporter, has attracted infrastructure investment from major countries, including East Asia's top companies.
When Crown Prince Mohammed bin Salman visited South Korea in November last year, an MOU was signed between industrial giant Hyundai Rotem and the Saudi Ministry of Investment to build a railway system for the futuristic NEOM city.
Saudi Arabia plans to add 8,000 km of tracks to its existing rail network of 3,650 km.
The IMEC will contribute to the development and upgrading of railways and ports, Crown Prince Mohammed bin Salman said on Saturday.
The latest transport and digital connectivity project complements existing regional integration plans, including the rail project connecting the Gulf Cooperation Council (GCC) members.
The GCC rail plan has faced delays due to technical and administrative reasons and only a portion of the 2,100-km network has been built since it was launched more than a decade ago at an estimated cost of more than $15bn.
Details of how the IMEC will be developed and financed were not included in the MOU.
"The participants intend to meet within the next 60 days to develop and commit to an action plan with relevant timetables," the MOU said.
Lobito Corridor in Africa
Through PGII, the US and its G7 allies aim to offer alternatives to China's mega infrastructure and development push Belt and Road Initiative (BRI) in Asia, Africa and other regions.
Biden announced a plan to develop a sub-Saharan Africa corridor which links the EU, Angola, Zambia and the Democratic Republic of Congo (DRC).
