Turkey and Saudi Arabia Advance New Trade Route Reviving Hejaz Railway to Bypass Strait of Hormuz
Turkey is actively pursuing regional influence following its Operation Lion's Roar, recently signing a memorandum of understanding with Saudi Arabia to revive the historic Hejaz Railway. Originally launched in 1908, this railway connected Damascus with Medina in the Hijaz region of western Arabia. Ankara aims to establish an alternative trade corridor that circumvents the Strait of Hormuz and bypasses the IMEC corridor plan involving Israel.
The IMEC project, unveiled by then-US President Joe Biden in September 2023, seeks to create a trade corridor linking India to Europe through the UAE, Saudi Arabia, Jordan, and Israel. However, ongoing conflict in the Middle East since October 7, 2023, has stalled progress. Frustrated by exclusion from IMEC, Turkey has developed two parallel initiatives: the "Development Road" with Iraq and now the Hejaz Railway restoration.
The renewed railway route will diverge from the original path through Saudi Arabia and Iraq, instead running from Saudi Arabia to Jordan's port of Aqaba, then through Amman, Damascus, Aleppo, and into Turkey, which is well connected to European rail networks. This new corridor could economically and politically undermine IMEC, especially as Gulf states may see little benefit in cooperating with Israel after Operation Lion's Roar damaged their regional standing.
Financially, the project faces significant challenges. Saudi Arabia has scaled back major Vision 2030 projects amid economic pressures worsened by Iranian attacks and the closure of the Strait of Hormuz. Turkey grapples with a collapsing lira, double-digit inflation, and unconventional monetary policies. Syria, now a Turkish client state, requires substantial funds to rebuild after its civil war, estimated at over $200 billion. Experts suggest Qatar may become the key financier, given its political support for Turkey and investments in Turkish projects elsewhere.
Dr. Hai Eitan Cohen Yeneroglu of Tel Aviv University and the Jerusalem Institute for Strategy and Security notes that Turkey aims to position itself as a critical bridge between the eastern and western Middle East, potentially weakening Israel's economic interests in the region. The new land route offers faster transport compared to maritime shipping, though rail capacity is limited. Insurance companies have recently raised premiums on Gulf shipping, possibly encouraging diversification toward overland routes.
Overall, the Hejaz Railway revival represents a strategic move by Turkey and Saudi Arabia to reshape regional trade dynamics, sidestepping Israeli involvement and the Strait of Hormuz, while navigating complex economic and political constraints.
