Emerging Saudi Egypt relations!


Emerging Saudi Egypt relations!
-Dr. Abdul Ruff
_________

 

Syrian crisis has provided significant stimulus for the Saudi kingdom to act quickly to bring all West Asian Muslim powers under one strategic umbrella that, in turn, led to Saudi king to resort to active shuttle diplomacy in the region, shoring up support for a peaceful Mideast. Arab world has been in turmoil for years now, sacrificing millions of Muslims without any real cause.

There have been a series of visits by Saudi leaders, including the king Salman himself, to Turkey and Egypt to expand the Saudi’s diplomatic profile in the region.   King Salman’s recent and first ever visit to Egypt plays important role in streamlining the Saudi led Mideastern relations in general.

 

King Salman’s visit to Egypt

Saudi Arabia’s King Salman concluded a five-day visit to Egypt on April 11, one day after he addressed the Egyptian parliament and the day he left for Turkey for an official visit. Saudi Arabia’s King Salman Bin Abdel-Aziz arrived in Cairo on April 07 on his first official state visit to Egypt since ascending to the Saudi throne in January 2015. Saudi PM Salman was greeted by Egyptian President Abdel-Fattah El-Sisi upon arrival. King Salman met grand Sheikh of Al-Azhar, the highly prestigious Sunni educational institution, on Saturday. The Saudi leader delivered a speech in the Egyptian parliament.

Salman previously visited Egypt’s southern Sinai city of Sharm El-Sheikh in March 2015 for an Arab League summit. During his five-day visit, the two sides were expected to sign four agreements worth roughly 22 billion dollars. In a show of support for President General Abdel-Fatteh Al-Sissi, who illegally toppled the first ever elected president of Egypt, Mohammad Morsi of Muslim Brotherhood and took military control of the country, the king pledged billions of dollars in new investment for the cash-challenged country.

For his part, Sissi transferred to the Saudis sovereignty of two islands in the Straits of Tiran that were contested by both countries. As the latest Saudi policy, the Saudi king called for Egyptian cooperation against extremism and terrorism. The two uninhabited islands that Sissi gave to the Saudi king are of enormous strategic importance, lying at the mouth of the Gulf of Aqaba from where it can control access to Jordan’s Port of Aqaba, Israel’s Port of Eilat. Sissi went out on a political limb to gift the two islands to the Saudis, a very unpopular move among Egyptians.

Egypt and Saudi Arabia have agreed on establishing a land bridge to connect the two countries, visiting King Salman Bin Abdel-Aziz said in a joint press conference. “The land bridge will be named after King Salman,” Egyptian President Abdel-Fattah al-Sisi said. Earlier, President al-Sisi has granted the Saudi king, who arrived in Cairo for a five-day visit, the Collar of the Nile.
The two sides have signed eight agreements, six memos of understanding and three cooperation programs that covered fields including education, health, housing, agriculture, electricity and marine transportation. Egypt and Saudi Arabia have agreed on establishing King Salman University in the North Sinai city of Tour.

Among the agreements signed by Egypt and Saudi Arabia during the visit are those related to housing projects in the Egyptian Sinai peninsula, the establishment of King Salman University in Tur town of South Sinai, the development of Egypt’s largest public hospital Qasr al-Aini, the building of a power station in western Cairo and the formation of a joint investment fund with a capital of 60 billion Saudi riyals -about 16 billion dollars. “All these agreements show the seriousness of the Saudi side to support the Egyptian economy, as there will be capital flow to Egypt which means there will be more employment and economic movement in the country in the near future.

Egypt and Saudi Arabia have agreed on establishing a land bridge to connect the two countries, visiting King Salman Bin Abdel-Aziz said in a joint press conference. “The land bridge will be named after King Salman,” Egyptian President Abdel-Fattah al-Sisi said. Earlier, President al-Sisi has granted the Saudi king, who arrived on Thursday in Cairo for a five-day visit, the Collar of the Nile. The two sides have signed eight agreements, six memos of understanding and three cooperation programs that covered fields including education, health, housing, agriculture, electricity and marine transportation. Egypt and Saudi Arabia have agreed on establishing King Salman University in the North Sinai city of Tour.

Not mentioned publicly was Saudi Arabia’s alliance with Qatar and Turkey, both of which are accused by Egypt of supporting Islamist groups. Turkey pursues friendly policy towards Saudi Arabia and Iran and seeks Egyptian help to make the Mideast tension free and free from illegally nuclearized Israeli aggression.

The Egyptian presidency described Salman’s visit to Cairo as “crowning the close brotherly ties between the two countries.” Saudi Arabia has supported Cairo with billions of US dollars to help revive the country’s economy following the ouster of Islamist President Mohamed Morsi in July 2013.
The visit comes at a time when Egypt is suffering political and economic pressures due to years of domestic political turmoil that led to economic recession and security challenges resulting from regional chaos. The Saudi investments show awareness that investment in Egypt is investment in the future, because politically Egypt represents a political weight and strategic depth for the Gulf region, and economically investments in Egypt are promising and fruitful.
Saudi investment in Egypt is nothing new, as Saudi business tycoons have been investing in the country over the past few decades. Today, it is the Saudi government that pumps investments into Egypt, which is a new and positive aspect and an indicator of the soundness and healthiness of the investment environment in Egypt,” Saleh explained.
Sisi in Riyadh
Earlier, Egyptian President Gen Abdel Fattah al-Sisi had visited the kingdom in 2015 for economic support. On 02 March 2015, visiting Egyptian President Abdel Fattah al-Sisi and Saudi Arabia’s King Salman bin Abdulaziz Al Saud held in-depth talks in Riyadh over the thorny regional issues before discussing the economic package for Egypt. The two leaders highlighted the current crisis in the Middle East and reviewed aspects of bilateral cooperation. They emphasized the depth of strategic relations between the two countries. The meeting also addressed the security conditions following the growing political chaos in Yemen. During a TV interview, Sisi said the two countries need to coordinate considering the “difficult condition” in the Arab region. Sisi’s visit was the latest in a series of meetings in Riyadh between Salman and top officials from his Gulf neighbors and Jordan.
Since late March, Egypt has joined a Saudi-led military coalition that has been launching airstrikes against the Shiite Houthi militants in Yemen, who have seized several cities in the country since September 2014, including the capital Sanaa, and have recently forced President Abd-Rabbu Mansour Hadi to flee to the Saudi capital of Riyadh. Egypt is currently providing naval support to the coalition, which has been airdropping weapons and equipment supplies to pro-Hadi tribal militia in Aden to fight against the Houthi militants. Despite Russia’s abstaining, the UN Security Council voted in favor of an arms embargo against the Houthis and the supporters of former Yemeni President Ali Abdullah Saleh. The resolution also imposed sanctions on the Shiite group, demanding its withdrawal from the Yemeni areas it has previously seized.
Later, on 15 April 2015, during a Saudi minister’s visit to Cairo, Egypt and Saudi Arabia agreed to carry out a major strategic military maneuver in the latter’s territory, which is to be joined by other Gulf and Arab states, Egyptian President Abdel-Fattah al-Sisi said in a statement. The statement came after a meeting between al-Sisi and visiting Saudi Defense Minister Mohammad bin Salman, who had also held talks with his Egyptian counterpart Sedqi Sobhi. “Egypt represents one of the main and effective forces to achieve security and stability in the Middle East region,” the Saudi defense minister said.
Egypt has been in need of this “economic push,” arguing it comes at a time when the country is suffering declining foreign currency reserves, shortage of US dollars and low investment growth rates. “I believe all these investments will have a very positive effect on Egypt,” the professor told Xinhua, noting it needs at least until the end of 2016 to evaluate the investments based on how much funds will have been pumped into Egypt, what investments will have been initiated, etc.

 

Past

In the years immediately after the Egyptian Revolution of 1952 relations between Egypt and Saudi Arabia were cordial, though driven by mutual suspicion of the Hashemites reigning in Jordan and especially Iraq at the time, and continuing from an anti-Hashemite alliance formed by King Ibn Saud of Saudi Arabia, King Farouk of Egypt and President Shukri al-Quwatli of Syria after the foundation of the Arab League in 1945. Subsequently President Gamal Abdel Nasser and King Saud of Saudi Arabia co-operated to limit the reach of the Baghdad Pact, which they felt was designed to increase the influence of Hashemite Iraq. As a result, the two countries signed a bilateral military pact in 1955, and worked to successfully prevent Jordan from joining the Baghdad Pact.

Egypt came to have extensive involvement in the Saudi army, economy and education system. However the alliance was undermined by Saudi anxieties about the Egyptian government’s promotion of anti-monarchical forces in the Arab World, including the uncovering of an Egyptian-style Saudi Free Officers Movement and increasing labor unrest, Egypt’s increasing shift towards the Soviet Union, and efforts by Iraq and its western allies including the United States to drive a wedge between the two countries.

Under President Nasser, Egypt, backed by the Soviet Union, came to represent the Non-Aligned Movement and pan-Arabism, and was a nominal advocate of secularism and republicanism. The Saudis by contrast were strong supporters of absolute monarchy and Islamist theocracy, and were generally close to the governments of the United Kingdom and USA.

By 1958 this deterioration in the relationship apparently had led to King Saud offering a bribe of £1.9 million to Abdel Hamid al-Sarraj, the head of Syrian intelligence at the time and later Vice-President of the United Arab Republic, to secure the assassination of Nasser. An era of tension between Egypt and Saudi Arabia set in, negatively impacting the pan Arab nationalism.

Arrival of Mubarak as Egyptian leader tried to put the bilateral ties with Saudi back to normal footing. Unlike the situation at the time of Nasser, Mubarak’s Egypt – a conservative dictatorship closely allied with Washington – no longer represented an ideological or political polar opposite to Saudi Arabia. Nevertheless, there remained mutual suspicion and a rivalry between the two countries, both aspiring to preeminence in the Arab World in general and among the Arab allies of the US in particular. Saudi’s preeminence remained intact, however.

The Saudi Egypt rivalry manifested itself, for example, when President Barack Obama made a major tour of the Middle East in 2009, soon after assuming power. The Saudis resented Obama’s choice of Cairo as the venue for making a key policy speech, and State Department officials made an effort to mollify the Saudi leadership by following up the Cairo speech with a high-profile Presidential visit to the Saudi capital.

USA views Mideast with Israel playing central role. Obama also shamelessly continued the traditional US policy for essentially fascist Israeli, though in a low key. He also visited Israel and enjoyed life with Jewish criminals, invited them to White House for “talks’. The democratic candidate Hillary Clinton is wooing the strong Jewish lobbyists in USA and Israeli regime as well to support her candidature.

 

Egyptian revolution

During the 2011 Egyptian revolution, Saudi King Abdullah expressed support for Hosni Mubarak. “No Arab or Muslim can tolerate any meddling in the security and stability of Arab and Muslim Egypt by those who infiltrated the people in the name of freedom of expression, exploiting it to inject their destructive hatred. As they condemn this, the Kingdom of Saudi Arabia and its people and government declares it stands with all its resources with the government of Egypt and its people.” He condemned the “people who tried to destabilize the security and stability of Egypt.

 

On 10 May 2012, ambassador Kattan announced that the kingdom agreed to provide US$500 million in aid to Egypt and will deposit an additional US$1 billion at the country’s central bank as part of the $2.7 billion support package they had agreed in 2011. Saudi Arabia will also export $250 million worth of butane to Egypt, which has faced ongoing shortages of the fuel, as well as US$200 million to help small and mid-sized firms. The donation was part of a move by multiple Gulf States to send a large aid package to Egypt.
Muslim Brotherhood leader and Egyptian President Muhammad Morsi’s first official visit was to Saudi Arabia in July 2012, although his views are not fully aligned with those of the Saudi government. Saudi journalist Jamal Khashoggi stated that Saudi Arabia is a pragmatic country and that whoever the president of Egypt is, Saudi government is aware of the fact that it has to maintain good relations with this country.

Saudi Arabia has supported Cairo with billions of US dollars to help revive the country’s economy following the ouster of Islamist President Mohamed Morsi in July 2013. On 10 May 2012, the Saudi kingdom agreed to provide US$500 million in aid to Egypt and will deposit an additional US$1 billion at the country’s central bank as part of the $2.7 billion support package they had agreed in 2011. Saudi Arabia also exports $250 million worth of butane to Egypt, which has faced ongoing shortages of the fuel, as well as US$200 million to help small and mid-sized firms. The donation was part of a move by multiple Gulf States to send a large aid package to Egypt.

Saudi Arabia has been the key backer of al-Sisi since the ouster of President Mohamed Morsi in 2013 after mass protests against his one-year rule. It has pumped billions of dollars to help and invest into Egypt’s battered economy. King Salman met grand Sheikh of Al-Azhar, the highly prestigious Sunni educational institution; the Saudi leader also delivered a speech in the Egyptian parliament. Sisi’s visit was the latest in a series of meetings in Riyadh between Salman and top officials from his Gulf neighbors and Jordan.
According to Saudi Press Agency, on 02 March 2015, the visiting Egyptian President Abdel Fattah al-Sisi and Saudi Arabia’s King Salman bin Abdulaziz Al Saud held in-depth talks in Riyadh over the thorny regional issues. The two leaders highlighted the current crisis in the Middle East and reviewed aspects of bilateral cooperation. They emphasized the depth of strategic relations between the two countries. The meeting also addressed the security conditions following the growing political chaos in Yemen. During a TV interview, Sisi said the two countries need to coordinate considering the “difficult condition” in the Arab region.
Egypt and Saudi Arabia on 15 April 2015 agreed to carry out a major strategic military maneuver in the latter’s territory, which is to be joined by other Gulf and Arab states, Egyptian President Abdel-Fattah al-Sisi said in a statement. The statement came after a meeting between al-Sisi and visiting Saudi Defense Minister Mohammad bin Salman, who had also held talks with his Egyptian counterpart Sedqi Sobhi. “Egypt represents one of the main and effective forces to achieve security and stability in the Middle East region,” the Saudi defense minister said.
Since late March, Egypt has joined a Saudi-led military coalition that has been launching airstrikes against the Shiite Houthi militants in Yemen, who have seized several cities in the country since September 2014, including the capital Sanaa, and have recently forced President Abd-Rabbu Mansour Hadi to flee to the Saudi capital of Riyadh. In return for economic aid, Egypt is currently providing naval support to the Saudi led coalition, which has been airdropping weapons and equipment supplies to pro-Hadi tribal militia in Aden to fight against the Houthi militants.

Despite Russia’s abstaining, the UN Security Council voted in favor of an arms embargo against the Houthis and the supporters of former Yemeni President Ali Abdullah Saleh. The resolution also imposed sanctions on the Shiite group, demanding its withdrawal from the Yemeni areas it has previously seized.
Present

Egypt has been in need of this “economic push,” arguing that the country is suffering declining foreign currency reserves, shortage of US dollars and low investment growth rates. “I believe all these investments will have a very positive effect on Egypt,” an analyst told Xinhua, noting it needs at least until the end of 2016 to evaluate the investments based on how much funds will have been pumped into Egypt, what investments will have been initiated, etc.

After the 2011 turmoil, the economic growth was as low as 1.5 percent and it gradually increased until it reached 4.5 percent in the current fiscal year and is expected to reach 5.5 percent in the coming fiscal year as the government stated, which shows that Egypt is on the rise economically,” the political economy professor illustrated.

Over the past five years, Egypt’s foreign currency reserves declined from 36 billion US dollars in 2011 to 16.5 billion dollars as of end of March 2016, and the government is currently struggling to reduce an ongoing budget deficit of about 36 billion dollars.

Egypt has conducted feasibility studies for these Saudi projects to ensure their benefit to the Egyptian economy. When the Saudi funds are transferred to Egypt, they will positively affect the value of the US dollar compared to the Egyptian pound as they will increase the currency reserves at the Egyptian central bank, and if they do not devaluate the dollar, they will at least stop the current deterioration of the Egyptian pound.

Saudi-Egyptian ties are bound to grow in strength and depth with increasing number of mutual visits from both sides at high levels. Economic and security ties will gather momentum.

 

Observation
The just concluded five-day visit of Saudi King Salman bin Abdulaziz to Egypt represents Riyadh’s political and economic support for Cairo to overcome current challenges, said Egyptian experts. The visit saw the signing of agreements of Saudi investments in Egypt worth about 25 billion US dollars, according to a statement from Egyptian International Cooperation Minister Sahar Nasr.

Egypt has been facing Western political pressure, particularly from Italy, after the recent death of an Italian young man in Cairo and Italy’s suspicion of the involvement of the Egyptian police in the tragedy, to the point that the Western country recalled its ambassador to Cairo for consultations. Saudi King’s visit has a political dimension, as it indicates a sort of support to Egypt amid some political challenges, including the case of Italian student Giulio Regeni’s death in Cairo.

 
Saudi investments in Egypt may lead to more Gulf investments in Egypt, since the Gulf Cooperation Council (GCC) states are greatly interrelated politically and economically. However, Saudi Arabia has to focus on a very important issue- establishment of Palestine in Mideast. S  given True, so long as Israel is in Mideast,  it won’t allow Palestine to  get UN recognition as a full state, though it has won defacto recognition in the UN general assembly against the will of US-Israeli twins.

Saudi Arabia has been strenuously making efforts to free Palestine from Israeli terror regime but without any success. Israel and Egypt are jointly causing existential problems with terror blockades  from both sides for the  besieged Palestinians and Gaza Strip where the Hamas rules is the prime target  of Israeli military,  attacking it regularly on fictitious pretexts. Even turkey’s efforts to breach the blockades to free Gaza Strip have ended in Israeli military attacks on the Turkish aidships.

It is a fact that Israeli aggression on Palestine territories continue with its military using US terror goods and Pentagon services.  Israel and its major terror ally USA very conveniently  use the Hamas-Fatah conflict to divide the Palestinians and create obstacles for the establishment of much delayed Palestine state.

Saudi kingdom could use its new friendship with Egyptian regime to remove the blockade from its side so that Palestinians could begin to live human life. Giving justice to the Palestinians should be the key objective of new Saudi Egyptian relations.

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