Israel-Hamas ceasefire talks to happen in Cairo: What Egypt stands to gain from mediating

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Its geographical proximity to Gaza and control over the Rafah crossing— the only border with Gaza not under Israeli control—position Egypt as a crucial player in ceasefire talks. Cairo’s role as a mediator is not new. But it is more invigorated now than perhaps ever before read more

 What Egypt stands to gain from mediating

Egypt, under President Abdel Fattah el-Sisi, has taken significant efforts to broker a ceasefire agreement between Hamas leaders and Israel, under Prime Minister Benjamin Netanyahu. Agencies

Prime Minister Benjamin Netanyahu’s office announced on Thursday that Israel will send a delegation to Egypt for further talks with mediators on a proposed ceasefire and hostage release deal with Hamas. This move is the closest the two parties have come to bridging their differences after months of intense negotiations facilitated by US, Egyptian, and Qatari mediators.

Egypt’s role as a mediator is not new. But it is more invigorated now than perhaps ever before. And it’s not altruism driving their involvement.

We explain what is motivating Cairo towards brokering a ceasefire in the Gaza war.

Strategic interests

Egypt’s involvement in the mediation efforts is driven by several strategic interests.

The only country (apart from Israel) that Gaza shares a border with, is Egypt. One of the primary concerns for Cairo is the potential mass exodus of Palestinian refugees into the Sinai Peninsula.

Maintaining a close relationship with Hamas is key for Egypt to preserve its regional influence and minimize the impact of competitors like Turkey and Qatar in Gaza.

Calls by some ultra-nationalist Israeli officials to displace Palestinians into Egypt’s Sinai Peninsula have further fueled Cairo’s efforts to mediate the conflict. Egypt has categorically rejected these suggestions as a “red line” that would undermine its national security, highlighting the high stakes involved in the mediation process.

Diplomatic clout

Egypt’s unique historical relationship with Israel has given it a lot of clout in the region, especially in the context of arbitration. Mediation can be seen as a part of its efforts to reclaim its role as a heavyweight in Arab diplomacy, too.

Egypt was the first Arab state to make peace with Israel in 1978, Egypt has a lengthy history of diplomacy with the Jewish state. This means it has greater diplomatic leverage ahead than countries like Morocco, the UAE, and Bahrain, which only normalised relations with Israel in 2020. Moreover, Egypt’s shared border with Gaza gives it additional leverage over Hamas, allowing Cairo to influence Hamas policies by controlling the border crossing.

For instance, in February 2021, Egypt opened the Rafah crossing “indefinitely” after Hamas pledged to accept the results of the long-delayed Palestinian elections. This move was part of an effort to create better conditions for negotiations between the Palestinian factions, demonstrating Egypt’s ability to use its control over the border to shape outcomes.

Economic imperatives

Beyond its political and strategic interests, there are economic imperatives powering Egypt’s arbitration efforts, too. Recently, several global shipping companies suspended shipping through the Suez Canal due to security concerns, adding to Egypt’s economic woes.

The country is grappling with an acute foreign currency shortage and a staggering foreign debt amounting to $164.73 billion by the end of June 2023. Resolving the Israel-Gaza conflict and preventing it from escalating into a wider war is crucial for Egypt’s economic stability.

Potential outcomes and benefits for Egypt

The outcome of the conflict could deliver several benefits for Egypt. One of the primary goals for Cairo is the return of the Palestinian Authority (PA) as the governing authority in Gaza. The PA is seen as more willing to engage in diplomacy and negotiations compared to Hamas. A scenario where Hamas is significantly weakened could pave the way for the PA’s return, leading to a more pragmatic neighbour for Egypt and Israel.

If Hamas loses power, Egypt is expected to play a crucial role in the government transition phase. Egypt has historically been the conduit through which aid and funds from Arab countries and the international community are transferred into Gaza. The country is likely to participate in Gaza’s reconstruction process and be a dominant influencing factor in shaping its future, according to an essay in The Conversation.

The challenges ahead

Despite the potential benefits, the path to a ceasefire is fraught with challenges. Netanyahu has vowed to press ahead with the nine-month offensive until Hamas is destroyed and all hostages are returned home. He has also demanded that Israel retain control of key Gaza territory along the border with Egypt—a condition that conflicts with Hamas’s position that Israel must withdraw from all Gaza territory after a ceasefire.

Hamas has accused Israel of using “delaying tactics” to sabotage the truce efforts, claiming it has not been informed of any new developments from the latest talks. These conflicting positions highlight the tough task ahead for the mediators in Cairo.

In a nutshell

The country has been involved in mediating between Israel and Hamas and in the reconstruction efforts of Gaza for several years. Its geographical proximity to Gaza and control over the Rafah crossing— the only border with Gaza not under Israeli control—position Egypt as a crucial player in these talks.

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