Israel may benefit from MbZ’s visit to Italy

The recent state visit of United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan to Italy has marked a pivotal moment in the diplomatic and economic relations between the two nations. During discussions with Italian Prime Minister Giorgia Meloni, the UAE committed to investing $40 billion in Italy, focusing on strategic sectors such as artificial intelligence, data centers, space research, renewable energy, and rare earths. This substantial investment underscores a deepening partnership aimed at fostering innovation and sustainable development.

A central topic of their dialogue was the India-Middle East-Europe Economic Corridor (IMEC), an ambitious initiative designed to establish an intermodal trade route connecting India to Europe via Israel, UAE and other countries in the Middle East. Announced at the G20 summit in New Delhi in 2023, the IMEC aims to streamline the movement of goods and data, thereby enhancing economic cooperation among participating countries. Italy and the UAE are poised to play crucial roles in this project, which has the potential to redefine global trade pathways and offer a strategic alternative to existing routes.

Earlier this month, during Indian Prime Minister Modi’s visit to the White House President Donald Trump said,

“We agreed to work together to help build one of the greatest trade routes in all of history. It will run from India to Israel to Italy and onward to the United States, connecting our partners by ports, railways, and undersea cables, many, many undersea cables. It’s a big development.

For Israel, the IMEC presents significant opportunities. The proposed corridor includes a railway network traversing Jordan and Israel till Haifa, linking the Gulf region to the Mediterranean Sea with Haifa as the hub. This development could bolster Israel’s position as a regional logistics hub and will serve as a catalyst for normalizing relations with Arab nations involved in the project. Collaborating with Italy and the UAE within the IMEC framework could open new economic and diplomatic avenues for Israel, further integrating it into regional economic dynamics, a process which was brutally cut short by the 7/10 Hamas terrorist attacks.

Historically, Israel and Italy have maintained robust relations, characterized by cooperation across various sectors, including technology, defense, and commerce. Italy has been a key European partner for Israel, advocating for dialogue and collaboration in the Mediterranean region. Joint participation in the IMEC could strengthen these ties, presenting new prospects for infrastructure projects and trade exchanges.

Concurrently, Israel’s relationship with the UAE has undergone a remarkable transformation, highlighted by the signing of the Abraham Accords in 2020. These agreements have paved the way for unprecedented economic and diplomatic collaboration between the two countries. Their inclusion in the IMEC signifies a natural progression of this partnership, facilitating increased trade and promoting regional stability through shared initiatives.

Another pertinent framework that exemplifies the growing cooperation among India, Israel, the UAE, and the United States is the I2U2 or West Asian Quad grouping. Established to enhance economic collaboration and address transnational challenges, the I2U2 focuses on sectors such as water, energy, transportation, space, health, and food security. This platform offers Israel additional opportunities to strengthen its relationships with Italy and the UAE, exploring new partnerships in strategic areas. It has been often hinted to by analysts that Italy should join this grouping to establish the I3U2, given its close relationships with all players, especially during Prime Minister Meloni’s leadership.

Sheikh Mohamed bin Zayed’s visit to Italy and the subsequent agreement with Prime Minister Giorgia Meloni regarding the IMEC signify a substantial step toward greater economic and diplomatic integration among Europe, the Middle East, and Asia. For Israel, this development provides a chance to solidify its ties with both Italy and the UAE, actively participating in projects that promote regional prosperity and stability. The convergence of initiatives like the IMEC and the I2U2 underscores the importance of multilateral cooperation in shaping the future of international relations and establishing new pathways for trade and development.