Egyptian-Saudi tension begins: the honeymoon is reaching its end

[Aramagedon]

Egyptian-Saudi tension begins: the honeymoon is reaching its end

I, like many others, was surprised by the sudden decision taken by Saudi Aramco to stop supplying Egypt’s needs of petroleum products, despite the agreement between Egypt and Saudi Arabia stating that the latter will secure Egypt’s requirements for petroleum products at 700,000 tonnes per month for five years. The value of the agreement between the two countries amounts to $23bn to be repaid over 15 years. The agreement came to spare Egypt from the fuel crisis, while cancelling it puts Egypt in a difficult position and may cause a severe crisis similar to that we suffered during the era of the Muslim Brotherhood government.

The Ministry of Petroleum attempted to mitigate the impact of this news by saying that the agreement is still in effect and that shipments were only halted for October. Yet, I am worried that the length of this suspension would stretch further on the back of political tension between the two states. Since I am primarily concerned about the side effects of a series of differences on the economic level, I will not seek to explain the political situation of the two countries over the controversy on Syria, Libya, and Yemen, or the Egyptian and Iranian rapprochement.

Halted oil shipments are just one of a series of crises that may affect Egypt as a result of increased tension between the two countries. Remittances of one million Egyptians in Saudi Arabia are one major source for hard currency, which can be used to pressure Egypt in light of the high unemployment rate. Similarly, Saudi Arabia’s deposits—most recently the $2bn deposit—are key to reaching an agreement for a loan with the International Monetary Fund. The Saudi foreign ministry has rejected an informal Egyptian request to exempt Egyptian labour from the recently imposed high fees, or to cut them. This would impact Egyptian expats in the kingdom, who secure hard currency flow into Egypt.

I realise how deep the relationship between the two countries is. And I understand that the differences will not be for long. At the same time, I strongly believe that Egypt must change and reduce its dependence on Saudi financial support. In other words, we must seek new ways of self-reliance rather than automatically tending towards Gulf aid. The state should maintain a proper balance between solving economic crises on the one hand, and preserving the sovereignty of political positions on the other. Whoever has the strength, owns his decision.

http://www.dailynewsegypt.com/2016/10/16/559415

 

[Aramagedon]

Egypt, Saudi Arabia in unofficial cold war, officials deny tension

Egyptian activists and media figures take to media platforms to express anger over Saudi Aramco’s decision

Following Egypt’s vote on the Russian-backed draft resolution in the United Nations security council, Saudi Arabia and Egypt have started a cold war on media platforms. Egyptian officials, however, are denying any political disagreement between the two countries.

Amid the tension, Saudi Arabia’s ambassador to Egypt Ahmed Al-Qattan left Cairo on Wednesday, reportedly heading to Riyadh in a three-day visit to discuss Egyptian-Saudi bilateral relations.

The fences around the Saudi embassy in Egypt have been reportedly removed for hindering the flow of traffic.

Following the vote in the security council, the Saudi envoy to the UN said that Egypt’s was “painful”. Washington-based Saudi lobbyist Salman Al-Ansari also condemned Egypt’s decision by posting to Twitter, saying, “Egypt’s voting makes me rather suspicious of its motherhood to the Arabs and the world”.

Days following the voting, Saudi Aramco halted its oil supplies to Egypt. The Egyptian Ministry of Petroleum said that this halt would be temporary and restricted to October, and the 5-year agreement with the Saudi company was still in effect. Citing Egyptian Ministry of Petroleum spokesperson Hamdy Abdel Aziz, Aramco’s Accelerated Transformation Program (ATP) said that the halting decision was made due to a commercial issue, not a political one. In addition, he was informed that this decision was taken before Egypt’s voting at the UN.

Political Analyst Gamal Sultan told Daily News Egypt that Egypt’s voting definitely resulted in tension between the two countries. He also surmises that Aramco’s decision was a result of the voting.

“The Saudi press severely criticised Egypt’s voting decision, and I don’t think there will be further escalations. However, for Egypt’s interest, I hope there will be no more escalations taken from the Saudi side.”

Egyptian journalist Ibrahim Eissa said that Saudi Arabia cannot bear the leading and independent stance that Egypt has taken. Saudi Arabia wants Egypt to follow in the decisions of Riyadh. Journalist Abdullah Al-Sennawy in an interview denied any strategic coalition between Egypt and Saudi Arabia, saying that if the two countries really do operate as a strategic coalition, they would at least agree upon their approaches to the regional turmoil.

Egyptian media figures also voiced their opinions on Egyptian-Saudi bilateral relations. Pro-regime TV presenter Ahmed Moussa spoke in a rather defensive tone and said that Egypt does not need anyone, and its decisions are sovereign and independent. However, TV presenter Lamis El-Hadidy said relations between Egypt and Saudi Arabia are strong and cannot be voiced publicly. “Not just because Egypt receives aid from Saudi Arabia, but rather because they are two important countries in the region.”

Chief editor of Al-Youm Al Sabee Khaled Salah said in an interview that Egyptians go to Hajj and Umra several times, further suggesting that Egyptians should do these religious rituals only once as a measure to save $6bn from going to Saudi Arabia. He added that he is “sad” that there is a disagreement between Egypt and Saudi Arabia.

The relations between Egypt and Saudi Arabia flourished in April following the Saudi’s king visit to Egypt. Saudi Arabia currently supplies Egypt with aid; however, activists from both countries took to the media to reveal opposing stances.

http://www.dailynewsegypt.com/2016/10/12/558612