The India-Middle East-Europe Economic Corridor (IMEC) promises to revolutionize global trade, transportation, and energy links, but the Israel-Hamas conflict in Gaza has thrown a wrench into its progress. This ambitious project could supercharge economic growth for India, Europe, and Gulf nations, while giving Israel a bigger role on the world stage.
Experts say Israel must push forward with IMEC right after the war ends. As Uzay Bulut writes in JNS, the corridor isn’t just about business—it’s a game-changer for strategy and geopolitics.
Back in 2023, leaders from India, the European Union, UAE, France, Germany, Italy, Saudi Arabia, and the United States signed a key Memorandum of Understanding at the G20 Summit. Their goal? Build a smart network of railways, ports, and highways to make trade faster and smoother. IMEC could rival China’s Belt and Road Initiative, creating a vital new pathway for global commerce with U.S. backing.
Picture this: The corridor links India to the Middle East and Europe through major ports like Haifa in Israel, Piraeus in Greece, and Trieste in Italy. For Israel, it’s more than money—University of Haifa’s Mordechai Chaziza calls it a way to reshape its place in the region. Israeli Prime Minister Benjamin Netanyahu sees it as a bridge to Arab economies and worldwide supply chains.
The perks are huge. Early estimates show IMEC’s overland routes could slash logistics costs by 30% and cut travel time by 40% compared to the Suez Canal. It would also make supply chains tougher against shocks and bring down energy prices.
But everything hit pause after Hamas’s brutal attacks on southern Israel on October 7, 2023—just weeks after the MoU was inked. The Gaza war, fueled by Iran’s proxies, stalled not just IMEC but also hopes for Saudi-Israeli normalization.
Still, it’s not all doom. Atlantic Council experts Rachel Rizzo and Nicholas Shafer argue that normalization helps, but IMEC can move ahead with smart diplomacy. The faster Israel stabilizes Gaza, the quicker it can jump back into building this corridor.
To make IMEC real, thinkers like Nir Levitan and professors Arie Reich and Jonathan Rynhold suggest starting with a multilateral agreement for ongoing talks. They also call for a special body to draw in private cash and speed up infrastructure across India, the Middle East, and Europe.
The U.S. and EU love IMEC because it strengthens ties with South Asia and the Gulf, pushing back against China’s influence. France and Italy have even named special envoys for it. In May, Israel and Cyprus kicked off new energy projects under the framework and revived their trilateral forum with Greece.
Now, it’s on Europe, the U.S., and Israel to ramp up efforts and get this project rolling again. With the right moves, IMEC could transform how the world connects and trades.
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