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Impact of Israel - Hamas conflicts on ACE industry


The Israel-Hamas conflict has once again brought to the forefront the devastating consequences of war on human lives, infrastructure, and economies. It's a grim reminder that wars, regardless of their causes, come at a high price, one that humanity continues to pay. Loss of life, food scarcity, displacement of communities, and economic turmoil are just a few facets of the profound impact of armed conflicts. People can be heard screaming in every direction. Their screams of pain reveal what they are going through or what they saw when their loved one died.

The construction industry, often referred to as ACE (Architecture, Construction, and Engineering), is a sector that bears a heavy burden during times of conflict. Buildings crumble, infrastructure is destroyed, and entire cityscapes transform into rubble and ash. The aftermath of war leaves cities in ruins and architects and engineers with the task of rebuilding. Here are few impact of war on ACE industry

The ACE Industry: A Victim of Destruction:

Yahya Hassouna | AFP | Getty Images| CNBC

One of the most evident impacts of the Israel-Hamas conflict is the extensive damage to infrastructure. Bombs and invasions don't discriminate, and buildings, bridges, and roads bear the brunt of the devastation. Post-conflict,

  • The process of reconstruction becomes a huge task.

  • Entire cities need to be rebuilt from the ground up,

  • Necessitating the import of construction materials and skilled labour as existing resource got damaged

  • The expenses surge, causing financial pressures to spread throughout the area.

  • Professional labourers lose their jobs

  • stakeholders who rely on daily incomes experience hard times financially.

  • Many of whom live in temporary housing, whose situation reflects the larger economic problems the area is facing.

  • Global supply chain got disturbed.

  • Unpredictable conditions cause investments to become unstable, which has a significant effect.

IMEC Project:

By Ehtesham Shahid | CIWAD India

One significant collateral impact of the Israel-Hamas conflict is felt in the India-Middle East-Europe Economic Corridor (IMEC) project. IMEC, announced during the 2023 G20 Summit in New Delhi, is designed to connect India to the Middle East and Europe through a network of rail and sea routes. The project's goal is to enhance trade connectivity, export clean energy, and foster economic growth and its connectivity is:.

  • Sea lanes connecting western India to the UAE

  • A rail network linking the UAE, the Kingdom of Saudi Arabia, Jordan, and Israel

  • A railway line connecting Fujairah port (UAE) to Haifa port (Israel) via Saudi Arabia (Ghuwaifat and Haradh) and Jordan

However, the conflict in the Middle East raises questions about the feasibility of the IMEC project. IMEC's funding is tied to the G7's Partnership for Global Infrastructure Investment (PGII) initiative.

  • Indian Prime Minister Narendra Modi conveyed on X, “Deeply shocked by the news of terrorist attacks in Israel. Our thoughts and prayers are with the innocent victims and their families. We stand in solidarity with Israel at this difficult hour.

  • Saudi Arabia's Ministry of Foreign Affairs issued a statement, Saudi Arabia recalls its repeated warnings of the dangers of the situation exploding as a result of the continued occupation, the deprivation of the Palestinian people of their legitimate rights, and the repetition of systematic provocations against their sanctities.

  • The European Union released a statement in support of Israel, stating, “The EU stands in solidarity with Israel which has the right to defend itself in line with international law, in the face of such violent and indiscriminate attacks.”

  • The conflict has exposed differing stances between the G7 nations, casting a shadow of uncertainty over the project's future.

While IMEC holds tremendous promise, it's undeniably ambitious, and its realization hinges on overcoming numerous challenges. The most immediate is the ongoing conflict in the region, which disrupts the delicate ecosystem required for the project's success.

Addressing the complexities of coordinating infrastructure development and trade agreements across India, the Middle East, and Europe requires diplomatic finesse and international collaboration.


It's crucial to recognize that the ACE industry isn't solely impacted by physical destruction caused by conflicts but also by the intricate web of relationships between individuals, companies, and nations. Differences in opinions, strategies, and approaches can also inflict substantial damage on the ACE sector. Just as we've explored the tangible consequences of conflict, it's equally important to understand the less visible but equally significant effects of discord within the industry. As we move forward, cooperation, collaboration, and effective communication becomes essential for the growth and resilience of the ACE industry, ensuring it continues to thrive and contribute to the built environment.


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