Israel-Hamas conflict casts shadow on IMEEC Economic Corridor

16 Oct 2023 CW Team

GTRI suggests that the conflict might hinder the possibility of a ground-breaking peace agreement between Israel and Saudi Arabia, a crucial element in the IMEEC framework. Despite the absence of formal diplomatic relations between Saudi Arabia and Israel historically, recent efforts have been made towards normalisation. However, Ajay Srivastava, Co-Founder of GTRI, expresses concerns that the on-going war could impede these diplomatic strides and disrupt any progress achieved.

"The current Israel-Hamas conflict could disrupt the IMEEC project's timelines and outcomes, representing a critical juncture in the corridor's development. While the immediate consequences of the conflict are regional, its geopolitical implications resonate far beyond the area, potentially affecting the proposed economic corridor," Srivastava remarked.

IMEEC, conceived as an economic corridor, aims to bolster economic growth by fostering connectivity and economic integration between Asia, the Persian Gulf, and Europe. The corridor's route is envisioned to stretch from India to Europe, passing through the UAE, Saudi Arabia, Jordan, Israel, and Greece.

The Memorandum of Understanding (MoU) for IMEEC was signed during the recent G20 summit in New Delhi, with the participation of governments from India, the US, the UAE, Saudi Arabia, France, Germany, Italy, and the European Union. The primary objective of the project is to enhance transportation and communication links between Europe and Asia, positioning it as a response to China's Belt and Road Initiative.

Srivastava further highlighted that the disruption in the Middle East, a pivotal section of this corridor, could lead to delays and complications in the project's implementation, underscoring the intricate challenges posed by the ongoing conflict.

The ongoing conflict between Israel and Hamas has raised concerns about potential disruptions and complications in the India Middle East Europe Economic Corridor (IMEEC) project, as indicated by the Global Trade Research Initiative (GTRI). While the immediate impact of the conflict is localised to Israel and Gaza, GTRI emphasises that its repercussions across the Middle East could be significant. GTRI suggests that the conflict might hinder the possibility of a ground-breaking peace agreement between Israel and Saudi Arabia, a crucial element in the IMEEC framework. Despite the absence of formal diplomatic relations between Saudi Arabia and Israel historically, recent efforts have been made towards normalisation. However, Ajay Srivastava, Co-Founder of GTRI, expresses concerns that the on-going war could impede these diplomatic strides and disrupt any progress achieved. The current Israel-Hamas conflict could disrupt the IMEEC project's timelines and outcomes, representing a critical juncture in the corridor's development. While the immediate consequences of the conflict are regional, its geopolitical implications resonate far beyond the area, potentially affecting the proposed economic corridor, Srivastava remarked. IMEEC, conceived as an economic corridor, aims to bolster economic growth by fostering connectivity and economic integration between Asia, the Persian Gulf, and Europe. The corridor's route is envisioned to stretch from India to Europe, passing through the UAE, Saudi Arabia, Jordan, Israel, and Greece. The Memorandum of Understanding (MoU) for IMEEC was signed during the recent G20 summit in New Delhi, with the participation of governments from India, the US, the UAE, Saudi Arabia, France, Germany, Italy, and the European Union. The primary objective of the project is to enhance transportation and communication links between Europe and Asia, positioning it as a response to China's Belt and Road Initiative. Srivastava further highlighted that the disruption in the Middle East, a pivotal section of this corridor, could lead to delays and complications in the project's implementation, underscoring the intricate challenges posed by the ongoing conflict.