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ELITE Vol.1, Issue 32, June 2021 ﺔﻴﺑﺮ #

New Sham:

A nucleus of an Arab federation?

Yasmin Tarek, 4th level, Economics

In light of the geopolitical changes that the as Iraq suffers from a severe shortage of
Middle East has witnessed during the last decade, electricity and it imports electricity from Iran to
there are new political and regional alliances that satisfy its needs, and then this line may reach
Egypt has launched and others are looking the Gulf countries, especially since Egypt is

forward to inaugurating them, to diversify the characterized by the presence of a large surplus
sources of foreign relations with the aim of facing of electricity as a result of the giant projects it
difficult developments and challenges, depending has recently undertaken - gas fuel stations and
on the state of competition based on resources clean energy stations; Egypt owns the largest

and natural wealth, as well as regional influence. solar power plant in the world in Benban,
Egypt currently has proved its strong return to the Aswan, and the largest wind power plant in El-
world arena and the restoration of regional and Zayt mountain on the Red Sea. After extending
international influence. the oil pipeline to Egypt, it can be extended to
Among these alliances is the new Levant (Al- Europe, making Egypt a center for exporting oil

Sham) Agreement between Egypt, Jordan and to Europe. In addition to the flow and increase
Iraq. The three countries launched a cooperation of investments to Iraq, where it is expected that
mechanism, which started from the Egyptian the gross domestic product of Iraq, Egypt and
capital, Cairo in March 2019, and announced at Jordan combined will reach about $500 billion.
the time a project to build an oil pipeline from the Other agreements were signed to enhance

port of Basra in southern Iraq, all the way to the cooperation, such as the establishment of an
port of Aqaba in Jordan and then Egypt. entity to transport passengers by land between
Accordingly, both Jordan and Egypt can obtain the three countries and the reconstruction
Iraqi oil, at discounts of about $16 per barrel - agreement for oil. Egypt also announced its
which represents almost a third of its global readiness to assist Iraq in building its security

price. In exchange Iraq will export electricity institutions and other agreements in preparation
from Egypt through Jordan as a first stage, for this major project.

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