The India-Middle East-Europe Corridor (IMEC) is a transformative multimodal infrastructure project designed to reshape global trade by integrating India, the Middle East, and Europe. Launched at the 2023 G20 Summit, it serves as a strategic rules-based alternative to China's Belt and Road Initiative (BRI), aiming to enhance supply chain resilience. While existing literature focuses on macro-level diplomatic gains for primary signatories, there is a significant gap regarding the geo-economic implications for marginalized regional actors and internal competition between transit hubs. Consequently, this study addresses the central question: what are the primary challenges and economic outcomes for the Middle East through the IMEC project? By exploring these economic aspects and consequences, the research specifically analyzes IMEC's role in reconfiguring Middle Eastern power dynamics. This study utilizes a qualitative methodology, analyzing operational dynamics through the lens of Interdependence Liberalism; this framework interprets how deepening economic integration acts as a catalyst for regional stability. The study reveals that IMEC can reduce transit times between India and Europe by 40% to 50%, saving approximately $5.4 billion in annual trade costs for Gulf nations like Saudi Arabia and the UAE. The corridor facilitates a transition toward post-oil economies by positioning them as global logistics and green energy hubs. However, the project faces critical obstacles, including geopolitical retaliatory strategies from excluded nations like Turkey and Iraq and security vulnerabilities from regional instability. The findings suggest that while IMEC offers a paradigm shift for regional peace, its viability depends on navigating complex rivalries. The study recommends establishing a specialized governance body and seeking functional synergies with excluded projects to avoid zero-sum competition. Keywords: Interdependence Liberalism, Geo-economics, Multimodal Infrastructure, Green Hydrogen, Supply Chain Resilience, Regional Stability, Trade Diversification
