Page 19 - issue 29 En

ELITE ISSUE 29, MARCH 2021

At the end of the day, it may still be too early to count the
project’s results, whether positive or negative, and also to
ascertain the extent of its impact on the revenues of the Suez
Canal (especially in case of Saudi engagement), but what is
certain is that on one hand, this project, which has been
accelerated in wake of the US-sponsored Israeli-Emirati
normalization agreement, it may expand Israel's role in the
region not only as an energy hub, but also as a center for
recharging to other users in the Mediterranean. With this
project, Israel saves to Europe time, shipping and distillation
costs from the Gulf (via the Suez Canal), the same applies to
the UAE (and the Gulf in general), as it reduces dependence
ARTICLE TITLE
on sea routes such as Bab al-Mandab and the Strait of Hormuz
which are vulnerable to attacks from Iran and the dangers of
pirates near the entrance to the Red Sea. As such, Israel would
It is already known that Egypt's economy relies heavily on the earn an estimated hundreds of millions of dollars annually by
income of the Suez Canal as one of the 3 most important sources allowing the flow of oil through the pipeline from Eilat to the
for securing foreign currency, followed by tourism revenues and Mediterranean coast.
remittances from Egyptian living abroad, which are the sectors
that were negatively affected after the global Covid-19 pandemic
crisis. Thus, talking about any alternative path that might affect
the Suez Canal and its income, will naturally spark fears and
concerns among Egyptians. And in this context, and after the
statements of the head of the Suez Canal Authority, Lieutenant
General Osama Rabie on television, which indicated the extent
of the project’s impact on the revenues of the Suez Canal and
Egyptian national security, the Suez Canal Authority issued a
statement on February 2, 2021 in an attempt to calm Egyptian For such reasons, on the other hand, a number of analysts,
public opinion, where it indicated that the analytical studies researchers and specialists, including Dr. Essam Sharaf,
prepared by its economic unit “did not find any actual effect of former prime minister of Egypt, are demanding the Egyptian
operating the Eilat Ashkelon pipeline on the maritime traffic government to accelerate the development of the Suez Canal
through the canal”. On the same day, Rabie stated in a telephone economic axis by transforming it into a global industrial and
interview that "new solutions" are being developed, including logistical center for supply, transportation and trade. This
would help attract investments in various sectors ; indeed,
new marketing and pricing plans such as reducing traffic fees Egypt has ports and industrial zones in the Suez Canal area,
(especially for giant oil tankers), as well as plans to develop and perhaps if these capabilities were effectively used, the
industries that attract ships, “if the matter exceeds the Suez Canal will not have a potential competitor in the region.
competitive limit we are concerned about”, but according to In light of these new regional arrangements and the dynamics
what he said “things are still under control”. In the same context, of competition that dominate the region(among its main
by looking at the annual report of the maritime traffic statistics strategic actors), many have questioned the impact of this
for 2019, it is noteworthy that oil and natural gas tankers project on relations between Cairo and Abu Dhabi, and Major
accounted for 27% of the number of ships that passed through General Hatem Bashat, the Egyptian military expert and
the Suez Canal, which is the second largest number after former parliamentarian, said in this regard that Egyptian-
container ships. Emirati relation is “strategic and cannot be affected”, and it is
natural for each country to “seek to benefit its own interests in
a way that serves its people and strengthens its economy”.
In another context, we have to wonder, how the Egyptian-
Israeli relation will be reshaped, especially with the recent
visit of the Egyptian Minister of Petroleum and Mineral
Resources, Engineer Tarek Al-Molla to Tel Aviv to discuss
aspects of cooperation between the two countries, in light of
the European Union’s growing need for energy and its
endeavor to reduce dependence on Russian gas (Gazprom) by
forming new routes, including across the Eastern
Mediterranean.

18