IMEC Overview
The India-Middle East-Europe Economic Corridor (IMEC), announced at the G20 summit in September 2023, envisions a multimodal transport network connecting India to Europe via the Arabian Peninsula. The corridor includes shipping lanes, rail links, and digital and energy infrastructure designed to enhance trade efficiency and provide an alternative to traditional routes. While the corridor’s primary nodes are India, the UAE, Saudi Arabia, and Israel (connecting to Europe via the Eastern Mediterranean), the broader logistics implications affect the entire Gulf region.
Oman’s Position
Oman is not a primary IMEC node in current plans, which creates both a challenge and an opportunity. The risk is marginalisation – if IMEC concentrates logistics flows through UAE and Saudi ports, Oman’s competing facilities at Sohar, Salalah, and Duqm could lose relative competitiveness. The opportunity lies in positioning as a complementary logistics hub, particularly for cargo flows that benefit from Oman’s Arabian Sea coastline (bypassing the Strait of Hormuz), its lower congestion levels compared to Jebel Ali, and its proximity to East African and Indian Ocean markets not directly served by the IMEC spine.
Competitive Implications
IMEC intensifies competition among Gulf logistics hubs. The UAE, as a primary corridor node, gains significant advantage. Saudi Arabia’s logistics investments through NEOM and the land bridge concept also benefit directly. For Oman, the imperative is differentiation: competing on cost efficiency, specialised cargo handling, and connectivity to secondary markets rather than attempting to match the scale of Dubai or Jeddah. The Duqm port’s position outside the Strait of Hormuz offers a unique value proposition for risk-averse shippers.
Strategic Response
Oman should pursue a multi-pronged strategy: seek inclusion in IMEC planning discussions as a supplementary node; accelerate Etihad Rail connectivity to link Omani ports with the broader GCC rail network; develop specialist logistics capabilities (cold chain, automotive, heavy industrial) that differentiate from generalist competitors; and leverage the India bilateral relationship to ensure direct shipping and trade facilitation. IMEC’s actual implementation timeline is uncertain, giving Oman time to position, but strategic planning must begin immediately.