27.07.2026 06:40
Israel's goal of becoming a regional trade hub through the India-Middle East-Europe Economic Corridor (IMEC) suffered a major blow from diplomatic initiatives led by Ankara following the outbreak of war in Gaza. While the project centered on Israel has been pushed to the background, alternative trade corridors led by Türkiye and Saudi Arabia have begun to come to the fore.
According to an analysis published by the UK-based Middle East Eye, Israel's goal of becoming a regional trade hub via the India-Middle East-Europe Economic Corridor (IMEC) has suffered a serious blow due to the Gaza war and security crises. The project, announced at the 2023 G20 Summit and planned to extend from India to the Gulf, and then to Europe through Israel's Haifa Port, has been effectively suspended.
The analysis noted that the project has not been officially canceled, but new trade routes excluding Israel are being developed.
TURKEY STANDS OUT IN THE NEW ROUTE
According to a report by the Turkish newspaper Türkiye, Turkey, Saudi Arabia, the United Arab Emirates (UAE), and Iraq have accelerated alternative transportation projects that exclude Israel.
In June, Turkey and Saudi Arabia signed a memorandum of understanding to revive the Ottoman-era Hejaz Railway through Jordan and Syria. During the same period, the UAE also began working on new trade corridors extending to Gulf ports via Iraq and Syria.
Iraq's Development Road Project aims to connect the Grand Faw Port in Basra to Europe through Turkey, thereby enabling trade to reach the Mediterranean without passing through Israel.
NOTABLE FINDING ON HAIFA PORT
The analysis stated that Israel's Haifa Port has an annual container handling capacity of approximately 1.5 million, which is insufficient to transport Gulf trade to Europe. It also emphasized that during the war, the ports and energy infrastructure were subjected to missile and drone attacks, negatively impacting investor confidence.
IRAN FACTOR PERSISTS
According to the analysis, one of the most significant risks to regional trade is Iran. It noted that potential crises in the Strait of Hormuz could directly affect both Gulf countries and energy trade, while the UAE and Saudi Arabia aim to reduce this dependency through alternative pipelines involving Turkey and new port investments.