The production of exopolysaccharides (EPSs) by bacterial populations in the rhizosphere has been demonstrated to contribute to water and nutrient uptake by plant roots through the modification of the physical properties of rhizosphere soil. We report here the characterization of a new EPS produced by a bacterial strain (KYGT207) isolated from an arid soil in southern Algeria (Gassi Touil), and the effect of inoculation of this strain on soil physical properties in the rhizosphere of Triticum durum L. Strain KYGT207 was assigned to the genus Rhizobium by 16S ribosomal DNA sequencing and belongs to a new species closely related to Rhizobium sullae. The EPS produced by this strain was found to be composed of glucose (Glc), galactose (Gal), and mannuronic acid (ManA) in a molar ratio of 2:1:1. The primary structure of the EPS was determined by sugar analysis, 1D and 2D NMR spectroscopy, consisting of a tetrasaccharide repeating unit with the following original structure: [structure: see text]. A rheological analysis showed that this EPS could be considered as a thickening agent with polyelectrolyte properties. Inoculation of wheat plantlets with strain KYGT207 caused significant promotion of plant growth (+85% for shoot dry mass and +56% for root dry mass), a significant increase in root-adhering soil (RAS) dry mass (dm) per root dm (RAS/RT) up to 137%, and in RAS aggregate water stability. We demonstrate that EPS-producing bacteria were present in sandy soils subjected to water stress and that EPS-producing Rhizobium populations play an important role in the rhizosphere through their contribution to soil aggregation.