Egypt warns instability could delay India–Europe transport corridor

Egyptian Foreign Minister Badr Abdelatty said on Friday that progress on the India–Middle East Economic Corridor (IMEC) depends on resolving the Palestinian issue, describing it as a key factor for achieving stability and regional cooperation.

Speaking in New Delhi during an official visit, Abdelatty said discussions with his Indian counterpart included the proposed corridor and Egypt’s potential participation. “Connectivity is important, but it must be part of a comprehensive and lasting settlement of the Palestinian question,” he told reporters.

The IMEC, announced during the G20 summit in September 2023, is a US-backed initiative designed to connect India to Europe through the Middle East via sea and rail links. The route would extend from India across the Arabian Sea to the United Arab Emirates, through Saudi Arabia and Jordan, and onward through Israel to Europe. India and the UAE signed a framework agreement for the project last year.

The conflict that began in October 2023 following Hamas’s attack on Israel has slowed momentum on the project. Abdelatty noted that regional instability can affect cooperation and infrastructure plans, saying, “If escalation continues, it could hinder progress on connectivity.”

He also said Egypt has suffered more than $9 billion in losses due to reduced traffic through the Suez Canal following attacks by Yemen’s Houthi group on ships in the Red Sea. “Before the attacks, about 75 ships crossed the canal daily in both directions; now the number ranges between 25 and 50,” he said.

Abdelatty met Indian Prime Minister Narendra Modi during his two-day visit, which focused on strengthening economic relations and attracting more Indian investment to Egypt. He said Cairo hopes to establish an Indian industrial zone within the Suez Canal Economic Zone, similar to those already operating for China and Russia.