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Dismiss the Egyptian People and Elect a New One

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As Communist writer Bertolt Brecht offered after East German workers rose against their Moscow-backed masters in 1953, perhaps the Egyptian government should dismiss the people and elect a new one.

Don’t laugh. Mexico did this after the debt crisis of the early 1980s: it dismissed the fifth of its population that moved to the United States. China has dismissed its rural population and recreated a new urban population, by 2020 shifting the equivalent of twice the American population from countryside to city.

Egypt’s problem is that it has no practical way of acting on Brecht’s advice. The Egyptian people are dying; the question is whether they will die slower or faster. I prefer slower, so I am pleased by this turn of events.

Starvation is the unstated subject of this week’s military coup. For the past several months, the bottom half of Egypt’s population has had little to eat besides government-subsidized bread, and now the bread supply is threatened by a shortage of imported wheat. Despite $8 billion of aid from Qatar and smidgens from Libya, Turkey, and others, Egypt is struggling to meet a financing gap of perhaps $20 billion a year, made worse by the collapse of its major cash earner — the tourist industry. Malnutrition is epidemic in the form of extreme protein deficiency in a country where 40% of the adult population is already “stunted” by poor diet, according to the World Food Program. It is not that hard to get 14 million people into the streets if there is nothing to eat at home.

Nearly half of Egyptians are illiterate. Seventy percent of them live on the land, yet the country imports half its food. Its only cash-earning industry, namely tourism, is in ruins. Sixty years of military dictatorship have left it with college graduates unfit for the world market, and a few t-shirt factories turning Asian polyester into cut-rate exports. It cannot feed itself and it cannot earn enough to feed itself, as I have explained in a series of recent articles. Someone has to subsidize them, or a lot of them will starve. Unlike Mexico, Egypt can’t ship its rural poor to industrial nations in the north.

Egypt’s people embraced the military because they remember that the military used to feed them. In fact, the military probably can alleviate the food crisis, because — unlike the Muslim Brotherhood– Egypt’s generals should be able to count on the support of Saudi Arabia. Saudi King Abdullah Bin Abdul Aziz congratulated Egypt’s military-appointed interim president on Wednesday night, while the United Arab Emirates expressed “satisfaction” at the course of events. Only the crazy emir of Qatar, the patron of al-Jazeera television and an assortment of Islamist ideologues, had backed the Brotherhood — and his son replaced him last week. The Saudi monarchy hates the Brotherhood the way Captain Hook hated the crocodile: it is the only political force capable of overthrowing the monarchy and replacing it.

Former President Morsi seized power from the military in August 2012, the day that the visiting emir of Qatar appeared in Cairo with a $2 billion pledge to the regime. At the time I warned (in a note for the Gatestone Institute) that “Qatar’s check to the Muslim Brotherhood makes Egyptian stability less likely.” I argued at the time:

Qatar’s $2 billion is a drop in the bucket; it just replaces the reserves that Egypt lost last month. So is a $3.5 billion IMF loan, under discussion for a year. The Obama administration has been telling people quietly that the Saudis will step in to bail out Egypt, but the Qatari intervention makes this less likely. The eccentric and labile Emir is the Muslim Brotherhood’s biggest supporter; its spiritual leader, Sheikh Yusuf al-Qaradawi (who supports suicide bombings against Israel) lived in exile during the Mubarak regime. Qatar funds al-Jazeera television, the modern face of Islamism. The Saudis hate and fear the Brotherhood, which wants to overthrow the Saudi Monarchy and replace it with a modern Islamist totalitarian political party. Qatar has only about $30 billion in reserves and can’t sustain Egypt for long.

Qatar is something of a wild card: it is ruled by an Emir without even the checks and balances that arise from having a large family behind a monarchy, as in Saudi Arabia. The whimsical Emir just bought the Italian firm of Valentino as a gift for his fashion-conscious second wife — not a dress, but the entire company. His support evidently emboldened the Muslim Brotherhood in Egypt to take on the military in the aftermath of the Sinai crisis. But that makes stability in Egypt less rather than more likely, because it gives the Saudis, the only funder capable of bailing out Egypt, reason to stand aside.

Qatar has spent nearly a third of its foreign exchange reserves in a Quixotic effort to project power in Egypt, which might explain why the old emir abdicated in favor of his son. With the Muslim Brotherhood out of the way in Egypt, the Saudis have uncontested influence with the military. Presumably the military will suppress the Brotherhood unless it chooses to dissolve spontaneously. No one should mourn the Brotherhood, a totalitarian organization with a Nazi past and an extreme anti-Semitic ideology.

The notion that this band of Jew-hating jihadi thugs might become the vehicle for a transition to a functioning Muslim democracy was perhaps the stupidest notion to circulate in Washington in living memory.

The Saudis have another reason to get involved in Egypt, and that is the situation in Syria. Saudi Arabia’s intervention in the Syrian civil war, now guided by Prince Bandar, the new chief of Saudi Intelligence, has a double problem. The KSA wants to prevent Iran from turning Syria into a satrapy and fire base, but fears that the Sunni jihadists to whom it is sending anti-aircraft missiles eventually might turn against the monarchy. The same sort of blowback afflicted the kingdom after the 1980s Afghan war, in the person of Osama bin Laden. Saudi Arabia and Qatar have been fighting for influence among Syria’s Sunni rebels (as David Ottaway reported earlier this week at National Interest). Cutting off the Muslim Brotherhood at the knees in Egypt will help the KSA limit potential blowback in Syria.

Egypt probably can be kept on life support for about $10 billion a year in foreign subsidies, especially if the military regime can restore calm and bring the tourists back (although that is a big “if” — one of President Morsi’s last acts was to appoint as governor of Luxor province an associate of the Islamist terrorists who massacred 62 tourists in Luxor in 1997). With about $630 billion in foreign exchange reserves, Saudi Arabia can carry Egypt for a couple of years while the Syrian crisis plays out. Saudi Arabia also has covered a good part of Turkey’s huge payments deficit during the past couple of years, which means that Ankara will dance to Riyadh’s tune.

This is the background to the Saudi monarch’s enthusiastic statement of congratulations to the Egyptian military, released almost immediately after the takeover was announced:

In my own name and on behalf of the people of the Kingdom of Saudi Arabia, I congratulate you on assuming the leadership of Egypt at this critical point of its history,” said the king in a cable carried by the Saudi Press Agency (SPA). “By doing so, I appeal to Allah Almighty to help you to shoulder the responsibility laid on your shoulder to achieve the hopes of our sisterly people of the Arab Republic of Egypt.

At the same time, we strongly shake hands with the men of all the armed forces, represented by General Abdel Fattah al-Sissi, who managed to save Egypt at this critical moment from a dark tunnel God only could apprehend its dimensions and repercussions, but the wisdom and moderation came out of those men to preserve the rights of all parties in the political process.

Please accept our greetings to you and deep respect to our brothers in Egypt and its people, wishing Egypt steady stability and security.

I expect Saudi Arabia to offer Egypt subsidized oil as well as cash for urgent food purchases, allowing the military to appear as national saviors — at least for the time being. It is not clear what the Muslim Brotherhood will do, but apart from seeking martyrdom, there is not much that it can do.

In the Beltway, to be sure, the same folk on left and right who thought the “Arab Spring” would usher in a golden era of Muslim democracy are wringing their hands over the tragic fate of Egypt’s first democratically elected government. These include Republicans as well as Democrats, whom I qualified as “Dumb and Dumber” in a May 20 essay for Tablet. The sequel — call it “Dumb and Dumberer” — is still playing on CNN and Fox News. No matter: the important matters are now in the competent hands of Prince Bandar, whose judgment I prefer to that of John Kerry or Susan Rice or John McCain any day of the week. The best-case scenario would be for the grown-ups in the region to ignore the blandishments of the Obama administration as well as the advice of the Republican establishment, and to do what they have to do regardless.

Americans who want to conduct a great experiment in democracy will have to take their laboratory somewhere else.

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Middle East

Will Oman Succeed In What The UN And US Envoys Failed In Yemen?

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Since taking office on January 20, US President Joe Biden has made a priority for Yemen and appointed Tim Linderking as the US special envoy to Yemen to seek an end of the war that has been going on for more than six years, which made Yemen live “the worst humanitarian crisis in the world”, as described by the United Nations.

Nearly four months after his appointment as a special envoy to Yemen, and after several visits to the region, and several meetings through Omani coordination with representatives of the Houthi movement in Muscat, Linderking returned to the United States empty-handed, announcing that the Houthis are responsible for the failure of the ceasefire to take hold in Yemen. The US State Department said “While there are numerous problematic actors inside of Yemen, the Houthis bear major responsibility for refusing to engage meaningfully on a ceasefire and to take steps to resolve a nearly seven-year conflict that has brought unimaginable suffering to the Yemeni people”.

Two days only after the US State Department statement, which blamed the Houthis for the failure of the peace process in Yemen, an Omani delegation from the Royal Office arrives in Sana’a. What are the goals behind their visit to Sana’a, and will the Omani efforts be crowned with success?

Houthi spokesman Muhammad Abdul Salam said that “the visit of a delegation from the Omani Royal Office to Sanaa is to discuss the situation in Yemen, arrange the humanitarian situation, and advancing the peace process”. However, observers considered that the delegation carried an American message to the Houthi leader as a last attempt to pressure the Houthis to accept a ceasefire, and to continue the peace efforts being made to end the war and achieve peace, especially after the failure of all intensive efforts in the past days by the United Nations and the United States of America to reach a ceasefire as a minimum requirement for peace.

Oman was the only country in the Gulf Cooperation Council that decided not to participate in what was called “Operation Decisive Storm”, led by Saudi Arabia following its consistent policy of non-interference. Due to its positive role since the beginning of the crisis and its standing at the same distance from all the conflicting local and regional parties in Yemen, it has become the only qualified and trusted party by all the conflicting parties, who view it as a neutral side that has no interest in further fighting and fragmentation.

On the local level, Oman enjoys the respect and trust of the Houthis, who have embraced them and their negotiators for years and provided them with a political platform and a point of contact with the international parties concerned with solving the Yemeni problem, as well as embracing other political parties loyal to the legitimate government, especially those who had a different position to the Saudi-Emirati agenda during the last period.

At the regional level, Oman maintains strong historical relations with the Iran, and it is a member of the Gulf Cooperation Council, and this feature enables it to bring the views between the two sides closer to reach a ceasefire and ending the Yemeni crisis that has raved the region for several years as a proxy war between the regional rivalries Saudi Arabia and Iran.

Oman now possesses the trust and respect of all local, regional and international parties, who resorted to it recently and they are all pushing to reach a ceasefire and ending the crisis, after they have reached a conviction that it is useless. So the Omani delegation’s public visit to Sana’a has great connotations and an important indication of the determination of all parties to reach breakthrough in the Yemeni crisis.

The international community, led by the United States, is now looking forward to stop the war in Yemen. Saudi Arabia also is looking for an end to the war that cost the kingdom a lot and it is already presented an initiative to end the Yemeni crisis, as well as Iran’s preoccupation with its nuclear program and lifting of sanctions.

Likewise, the conflicting local parties reached a firm conviction that military resolution is futile, especially after the Houthis’ failed attempt for several months to control Marib Governorate the rich of oil and gas and the last strongholds of the government in the north, which would have changed the balance of power in the region as a whole.

Despite the ambiguity that is still surrounding the results of the Omani delegation’s visit to Sana’a so far, there is great optimism to reach a cease-fire and alleviate the humanitarian crisis and other measures that pave the way for entering into the political track to solve the Yemeni crisis.

The situation in Yemen is very complicated and the final solution is still far away, but reaching a ceasefire and the start of negotiations may be a sign of hope and a point of light in the dark tunnel of Yemenis who have suffered for years from the curse of this war and its devastating effects.

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Saudi Arabia steps up effort to replace UAE and Qatar as go-to regional hub

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Saudi Arabia has stepped up efforts to outflank the United Arab Emirates and Qatar as the Gulf’s commercial, cultural, and/or geostrategic hub.

The kingdom has recently expanded its challenge to the smaller Gulf states by seeking to position Saudi Arabia as the region’s foremost sport destination once Qatar has had its moment in the sun with the 2022 World Cup as well as secure a stake in the management of regional ports and terminals dominated so far by the UAE and to a lesser extent Qatar.

Saudi Arabia kicked off its effort to cement its position as the region’s behemoth with an announcement in February that it would cease doing business by 2024 with international companies whose regional headquarters were not based in the kingdom. 

With the UAE ranking 16 on the World Bank’s 2020 Ease of Doing Business Index as opposed to Saudi Arabia at number 62, freewheeling Dubai has long been international business’s preferred regional headquarters.

The Saudi move “clearly targets the UAE” and “challenges the status of Dubai,” said a UAE-based banker.

A latecomer to the port control game which is dominated by Dubai’s DP World that operates 82 marine and inland terminals in more than 40 countries, including Djibouti, Somaliland, Saudi Arabia, Egypt, Turkey and Cyprus, the kingdom’s expansion into port and terminal management appears to be less driven by geostrategic considerations.

Instead, Saudi Arabia’s Red Sea Gateway Terminal (RSGT), backed by the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, said it was targeting ports that would service vital Saudi imports such as those related to food security.

PIF and China’s Cosco Shipping Ports each bought a 20 per cent stake in RSGT in January.

The Chinese investment fits into China’s larger Belt and Road-strategy that involves the acquisition regionally of stakes in ports and terminals in Saudi Arabia, Sudan, Oman, and Djibouti, where China has a military base.

RSGT Chief Executive Officer Jens Floe said the company planned to invest in at least three international ports in the next five years. He said each investment would be up to US$500 million.

“We have a focus on ports in Sudan and Egypt. They weren’t picked for that reason, but they happen to be significant countries for Saudi Arabia’s food security strategy,” Mr. Floe said.

Saudi Arabia’s increased focus on sports, including a potential bid for the hosting of the 2030 World Cup serves multiple goals: It offers Saudi youth who account for more than half of the kingdom’s population a leisure and entertainment opportunity, it boosts Crown Prince Mohamed bin Salman’s burgeoning development of a leisure and entertainment industry, potentially allows Saudi Arabia to polish its image tarnished by human rights abuse, including the 2018 killing of Saudi journalist Jamal Khashoggi, and challenges Qatar’s position as the face of Middle Eastern sports.

A recent report by Grant Liberty, a London-based human rights group that focuses on Saudi Arabia and China, estimated that the kingdom has so far invested in US$1.5 billion in the hosting of multiple sporting events, including the final matches of Italy and Spain’s top soccer leagues; Formula One; boxing, wrestling and snooker matches; and golf tournaments. Qatar is so far the Middle East’s leader in the hosting of sporting events followed by the UAE.

Grant Liberty said that further bids for sporting events worth US$800 million had failed. This did not include an unsuccessful US$600 million offer to replace Qatar’s beIN tv sports network as the Middle Eastern broadcaster of European soccer body UEFA’s Champions League.

Saudi Arabia reportedly continues to ban beIN from broadcasting in the kingdom despite the lifting in January of 3.5 year-long Saudi-UAE-led diplomatic and economic boycott of Qatar.

Prince Mohammed’s Vision 2030 plan to diversify and streamline the Saudi economy and ween it off dependency on oil exports “has set the creation of professional sports and a sports industry as one of its goals… The kingdom is proud to host and support various athletic and sporting events which not only introduce Saudis to new sports and renowned international athletes but also showcase the kingdom’s landmarks and the welcoming nature of its people to the world,” said Fahad Nazer, spokesperson for the Saudi Arabian embassy in Washington.

The increased focus on sports comes as the kingdom appears to be backing away from its intention to reduce the centrality of energy exports for its economy.

Energy minister Prince Abdulaziz bin Salman, Prince Mohammed’s brother, recently ridiculed an International Energy Agency (IEA) report that “there is no need for investment in new fossil fuel supply” as “the sequel of the La La Land movie.” The minister went on to ask, “Why should I take (the report) seriously?”

Putting its money where its mouth is, Saudi Arabia intends to increase its oil production capacity from 12 million to more than 13 million barrels a day on the assumption that global efforts to replace fossil fuel with cleaner energy sources will spark sharp reductions in US and Russian production.

The kingdom’s operating assumption is that demand in Asia for fossil fuels will continue to rise even if it drops in the West. Other Gulf producers, including the UAE and Qatar, are following a similar strategy.

“Saudi Arabia is no longer an oil country, it’s an energy-producing country … a very competitive energy country. We are low cost in producing oil, low cost in producing gas, and low cost in producing renewables and will definitely be the least-cost producer of hydrogen,” Prince Abdulaziz said.

He appeared to be suggesting that the kingdom’s doubling down on oil was part of strategy that aims to ensure that Saudi Arabia is a player in all conventional and non-conventional aspects of energy. By implication, Prince Abdulaziz was saying that diversification was likely to broaden the kingdom’s energy offering rather than significantly reduce its dependence on energy exports.

“Sports, entertainment, tourism and mining alongside other industries envisioned in Vision 2030 are valuable expansions of the Saudi economy that serve multiple economic and non-economic purposes,” “ said a Saudi analyst. “It’s becoming evident, however, that energy is likely to remain the real name of the game.”

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Iranians Will Boycott Iran Election Farce

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Iran and elections have not been two synonymous terms. A regime whose constitution is based on absolute rule of someone who is considered to be God’s representative on earth, highest religious authority, morality guide, absolute ruler, and in one word Big Brother (or Vali Faqih), would hardly qualify for a democracy or a place where free or fair elections are held. But when you are God’s rep on earth you are free to invent your own meanings for words such as democracy, elections, justice, and human rights. It comes with the title. And everyone knows the fallacy of “presidential elections” in Iran. Most of all, the Iranian public know it as they have come to call for an almost unanimous boycott of the sham elections.

The boycott movement in Iran is widespread, encompassing almost all social and political strata of Iranian society, even some factions of the regime who have now decided it is time to jump ship. Most notably, remnants of what was euphemistically called the Reformist camp in Iran, have now decided to stay away from the phony polls. Even “hardline” former president Mahmoud Ahmadinejad realizes the extent of the regime’s woes and has promised that he will not be voting after being duly disqualified again from participating by supreme leader’s Guardian Council.

So after 42 years of launching a reformist-hardliner charade to play on the West’s naivety, Khamenei’s regime is now forced to present its one and true face to the world: Ebrahim Raisi, son of the Khomeinist ideology, prosecutor, interrogator, torturer, death commission judge, perpetrator of the 1988 massacre of political prisoners, chief inquisitionist, and favorite of Ali Khamenei.

What is historic and different about this presidential “election” in Iran is precisely what is not different about it. It took the world 42 years to cajole Iran’s medieval regime to step into modernity, change its behavior, embrace universal human rights and democratic governance, and treat its people and its neighbors with respect. What is shocking is that this whole process is now back at square one with Ebrahim Raisi, a proven mass murderer who boasts of his murder spree in 1988, potentially being appointed as president.

With Iran’s regime pushing the envelope in launching proxy wars on the United States in Iraq, on Saudi Arabia in Yemen, and on Israel in Gaza and Lebanon, and with a horrendous human rights record that is increasingly getting worse domestically, what is the international community, especially the West, going to do? What is Norway’s role in dealing with this crisis and simmering crises to come out of this situation?

Europe has for decades based its foreign policy on international cooperation and the peaceful settlement of disputes, and the promotion of human rights and democratic principles. The International community must take the lead in bringing Ebrahim Raisi to an international court to account for the massacre he so boastfully participated in 1988 and all his other crimes he has committed to this day.

There are many Iranian refugees who have escaped the hell that the mullahs have created in their beautiful homeland and who yearn to one day remake Iran in the image of a democratic country that honors human rights. These members of the millions-strong Iranian Diaspora overwhelmingly support the boycott of the sham election in Iran, and support ordinary Iranians who today post on social media platforms videos of the Mothers of Aban (mothers of protesters killed by regime security forces during the November 2019 uprising) saying, “Our vote is for this regime’s overthrow.” Finally, after 42 years, the forbidden word of overthrow is ubiquitous on Iranian streets with slogans adorning walls calling for a new era and the fall of this regime.

Europe should stand with the Iranian Resistance and people to call for democracy and human rights in Iran and it should lead calls for accountability for all regime leaders, including Ebrahim Raisi, and an end to a culture of impunity for Iran’s criminal rulers.

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