Eilat 2035: How Israel Should Respond to the Saudi-Turkish-Qatari IMEC Challenge

According to reports published by TheMarker and Haaretz, Transportation Minister Miri Regev recently sent a letter to Prime Minister Benjamin Netanyahu concerning the strategic implications of the India-Middle East-Europe Economic Corridor (IMEC) and regional developments. The letter demonstrates that the debate surrounding IMEC and initiatives designed to bypass Israel has reached the highest levels of government.
The letter focuses primarily on international developments, the Abraham Accords, and U.S. policy. Yet it also raises a broader strategic question: Is Israel concentrating mainly on what other countries are doing, or is it investing enough in strengthening its own competitive advantages?

In two articles published in The Times of Israel on June 5 and June 13, I suggested that Saudi Arabia, Turkey, and Qatar could promote alternative trade corridors bypassing Israel. If a long-term competition over post-war trade routes is indeed emerging in the aftermath of the U.S.-Iran conflict, Israel’s response cannot be limited to diplomatic discussions alone. It must also include significant investment in infrastructure, logistics, and industry.

The Port of Eilat should become far more than a local port or a “dry port.” It has the potential to serve as Israel’s southern gateway for trade with India, the Gulf states, and Asia. Around it, Israel could develop an advanced industrial, logistics, and services hub that connects raw materials and components arriving from Asia with Israel’s technological expertise, research capabilities, and innovation ecosystem. Such an approach would enable the production of high-value-added goods in Israel while strengthening the country’s role in global supply chains.

At the same time, Ramon Airport should be developed into an international air cargo hub supporting both imports and exports of advanced products while continuing to serve as a major tourism gateway. The combination of a modern seaport, cargo airport, industrial zone, and advanced transportation infrastructure could transform the Eilat region into a new economic center serving both Israel and its regional partners.

Alongside these economic discussions, recent months have also seen public reports and security assessments concerning Eilat and the Red Sea region. Regardless of the accuracy of those assessments or the circumstances surrounding their publication, such public discourse can influence the risk perceptions of investors, insurers, and international business partners. At a time when neighboring countries are actively promoting alternative trade routes, maintaining a reputation for stability, operational continuity, and long-term security carries significant economic value.

If Israel seeks to position itself as a central player in the economic corridor linking India, the Middle East, and Europe, the debate should not focus solely on who is responsible for regional developments. The more important question is how Israel can leverage its unique advantages to offer the most competitive route. Eilat could become one of the keys to that strategy.

The vision of “Eilat 2035” is not simply a plan for developing one city. It could become a cornerstone of Israel’s economic and geopolitical strategy for the coming decade.