Tensions in Egypt-Gulf relations will recede

Significance

Egypt’s dependence on Gulf states intensified alongside its economic difficulties, but increasingly, such assistance has come with demands for structural reforms. Egypt has been the target of criticism by Gulf-based commentators, especially in Saudi Arabia, who berate it for constantly seeking aid.

Impacts

• Currency devaluation will make Egypt’s exports more attractive, supporting its overall balance of payments.
• Cairo will ensure it remains a valuable mediator in the Palestinian-Israeli conflict.
• Egypt will position itself as a supportive partner in meeting Europe’s energy needs, but it will also maintain strong ties with Russia.
• Egypt will continue to play a major role in Libya.