How the Gaza War is impacting Saudi Arabia’s NEOM & IMEC projects

The ongoing Gaza conflict is not only a humanitarian crisis but also a major geopolitical challenge affecting the future of two of the most ambitious infrastructure projects in West Asia: Saudi Arabia’s NEOM mega-city and the India-Middle East-Europe Economic Corridor (IMEC).

In this video, we break down how the escalating tensions are disrupting both the NEOM project—Saudi Arabia’s high-tech city of the future—and the IMEC trade route, designed to link India, the West Asia, and Europe. NEOM – A visionary city that was meant to redefine urban living faces scaling back and financial hurdles. The Red Sea’s strategic importance for trade routes and regional stability is now at risk, complicating Saudi Arabia’s plans for its ambitious Vision 2030 goals. IMEC – The geopolitics of the Gaza war have put Saudi-Israel relations on hold, throwing a wrench into the delicate diplomatic web required to make IMEC a success.

Security risks along critical trade routes are also driving up costs and destabilizing the region’s economic future. Saudi Arabia’s Neutral Stance – Saudi Arabia has stayed largely neutral in the Gaza conflict, focusing instead on securing its economic future. Why has the Kingdom chosen to stay out, and how does this position reflect the broader goals of Vision 2030?