The India-Middle East-Europe Economic Corridor (IMEC) is being hailed as a transformative initiative for global trade, energy, and digital connectivity. Yet, its momentum has slowed due to the ongoing Israel-Hamas conflict in Gaza, according to experts.

IMEC, signed at the G20 Summit in 2023, involves India, the European Union, the UAE, Saudi Arabia, France, Germany, Italy, and the United States. The corridor envisions a multi-modal network of railways, highways, and ports connecting Asia, the Middle East, and Europe. Once operational, it is expected to reduce logistics costs by 30% and transit times by 40% compared to the Suez Canal, making it a strategic alternative to China’s Belt and Road Initiative (BRI).

For Israel, IMEC presents an opportunity to reinforce its strategic position in the Mediterranean and strengthen ties with Arab economies. The project’s success hinges partly on stability in the region. Analysts argue that Israel must prioritize IMEC once the war with Hamas subsides, not only to secure its own economic future but also to reinforce Western-led trade systems.

Israeli Prime Minister Benjamin Netanyahu has described IMEC as a “transformative platform” for deeper integration into global supply chains. The planned corridor is likely to connect major ports, including Haifa in Israel, Piraeus in Greece, and Trieste in Italy.

Experts suggest creating a multilateral framework to attract investment, streamline infrastructure development, and ensure long-term cooperation among member states. Europe and the U.S. have already appointed special envoys, while Israel and Cyprus have advanced new energy projects under IMEC.

Despite setbacks caused by Hamas attacks and Iran-backed regional instability, observers stress that careful diplomacy and strong international backing can keep IMEC on track. The sooner Israel stabilizes its security challenges, the faster it can help realize this ambitious project.