Israel Risks Missing Out on Key Economic Corridor

Israel may be on the verge of missing a strategic opportunity to shape its regional standing and boost its economy due to a lack of leadership focus on the India-Middle East-Europe Economic Corridor (IMEC).

While regional players and port operators are actively advancing the IMEC, which aims to connect India to Europe via maritime and land routes through the Gulf, Saudi Arabia, Jordan, and Israel, the Israeli leadership has reportedly sidelined the initiative. Recent developments highlight the growing momentum of the corridor: Saudi Arabia and the UAE signed a memorandum of understanding on October 8 to advance a rail link for cargo transport between them, with the UAE's existing rail network nearing the Saudi border. Separately, the IMEC Port Club was launched in New Delhi, with representatives from India, France, Lebanon, Oman, Cyprus, Italy, Greece, Saudi Arabia, and the UAE committing to pilot projects on logistics, trade facilitation, and energy corridors.

Jordan is also investing in transport infrastructure, with a new rail line from Aqaba to Ma'an and Shidiya, primarily for mining exports, underscoring a regional willingness to invest in transport. Despite Israel being the natural and shortest Mediterranean exit point for the land route from the UAE via Saudi Arabia and Jordan, and being mentioned in the original IMEC memorandum, its participation is not guaranteed without policy and action. Haifa Port is not a member of the IMEC Port Club, potentially excluding it from planned pilot projects. Furthermore, the crucial rail link between Beit She'an and the Jordan border crossing, and its extension to Haifa Port, still awaits approval, funding, and implementation.

This delay could cost Israel dearly. As the Israeli connection falters, partners may seek alternative routes, bypassing Israel entirely. Even if cargo eventually passes through Israel, it risks joining a corridor where rules on customs, data sharing, and security have already been set by others, limiting its ability to influence terms. The article criticizes the lack of a coordinated government policy and a designated lead body to advance Israel's integration into IMEC, citing the recent halt in cargo train traffic to Haifa Port due to a dispute over track maintenance as an example of internal coordination failures.

The upcoming Israeli government will need to prioritize IMEC from its first day, establishing a dedicated task force or coordinating body to manage inter-ministerial work and security aspects, alongside a budget and timeline. An advisory forum of experts should also be formed to define Israel's interests and integration strategy. Meanwhile, Israeli ports, particularly Haifa, should join the IMEC Port Club and participate in working groups and pilots to secure Israel's place in a corridor whose framework is increasingly being shaped by others.