An MoU on the India- Middle East – Europe Economic Corridor (IMEC) was signed by India, the USA, Saudi Arabia, UAE, the European Union, Italy, France, and Germany on 9 September 2023 on the sidelines of the G20 Summit in New Delhi.
“Pursuant to this Memorandum of Understanding, the Governments of the Kingdom of Saudi Arabia, the European Union, the Republic of India, the United Arab Emirates (UAE), the French Republic, the Federal Republic of Germany, the Italian Republic, and the United States of America (the “Participants”) commit to work together to establish the India – Middle East – Europe Economic Corridor (IMEC),” said an official release.
The IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe.
The IMEC will be comprised of two separate corridors, the east corridor connecting India to the Arabian Gulf and the northern corridor connecting the Arabian Gulf to Europe. It will include a railway that, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime and road transport routes – enabling goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.
“Along the railway route, Participants intend to enable the laying of cable for electricity and digital connectivity, as well as the pipe for clean hydrogen export. This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts,” it adds further.
The corridor will increase efficiencies, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions – resulting in a transformative integration of Asia, Europe, and the Middle East. In support of this initiative, Participants commit to working collectively and expeditiously to arrange and implement all elements of these new transit routes, and to establish coordinating entities to address the full range of technical, design, financing, legal, and relevant regulatory standards.