The ongoing Israel-Hamas conflict may lead to delays and complications in the India Middle East Europe Economic Corridor project, according to think tank Global Trade Research Initiative (GTRI). It said while the conflict’s immediate consequences are confined to Israel and Gaza, its ripple effects throughout the Middle East cannot be underestimated.
GTRI said the conflict could derail the prospect of a historic peace deal between Israel and Saudi Arabia, a crucial linchpin in the India Middle East Europe Economic Corridor (IMEEC) framework.
Although Saudi Arabia and Israel have historically maintained no formal diplomatic ties, recent years have witnessed signs of a thaw, with negotiations underway for normalisation, GTRI Co-Founder Ajay Srivastava said, adding that the war may derail any progress made.
“The ongoing Israel-Hamas conflict may disrupt the project’s timelines and outcomes, marking a pivotal juncture in the development of this ambitious economic corridor. While the war’s direct impact remains regional, the geopolitical consequences reverberate far beyond, with potential consequences for the proposed corridor,” he added. Srivastava added that the disruption in the Middle East, a vital link in this corridor, may lead to delays and complications in the project’s execution.
