Is China Playing a Role in Rebuilding Egyptian-Iranian Relations?

 Egyptian Foreign Minister Sameh Shoukry during his reception of the Iranian delegation participating in the COP 27 summit in Sharm El-Sheikh last November (Egyptian Ministry of Foreign Affairs)
Egyptian Foreign Minister Sameh Shoukry during his reception of the Iranian delegation participating in the COP 27 summit in Sharm El-Sheikh last November (Egyptian Ministry of Foreign Affairs)
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Is China Playing a Role in Rebuilding Egyptian-Iranian Relations?

 Egyptian Foreign Minister Sameh Shoukry during his reception of the Iranian delegation participating in the COP 27 summit in Sharm El-Sheikh last November (Egyptian Ministry of Foreign Affairs)
Egyptian Foreign Minister Sameh Shoukry during his reception of the Iranian delegation participating in the COP 27 summit in Sharm El-Sheikh last November (Egyptian Ministry of Foreign Affairs)

A recent research paper released by the Jeddah-based Gulf Research Center has outlined two scenarios for the future of Egyptian-Iranian relations: the reestablishment and strengthening of diplomatic ties, or the continuation of the current state of estrangement while maintaining a policy of de-escalation.

Youssef Khattab, the author of the research paper, explained that the severed ties between the two nations do not stem from a deep-rooted historical strategic conflict, fundamental clashes of interests, geopolitical rivalry, or other factors that perpetuate perpetual tension and animosity between countries.

According to Khattab, this fact makes it relatively easier for both nations to restore their relations if the will and sincerity exist.

In his report, Khattab points out two potential scenarios for the future relations between Egypt and Iran.

The first scenario involves the reestablishment and consolidation of diplomatic ties. This scenario holds significant potential to serve the interests of both nations and their people, especially considering the economic hardships they currently face.

To alleviate inflation, unemployment, and other pressures, both countries would need to expand their cooperation in trade, finance, and investment.

According to the report, there are factors that support the scenario of diplomatic reconciliation between Egypt and Iran. The global economic crises caused by the coronavirus pandemic have affected all nations, especially developing or third-world countries, which lacked the capabilities to effectively cope with the crisis and swiftly recover from its aftermath.

This has led both countries to seek closer cooperation, shun discord, and mend their relations.

Additionally, the Russian invasion of Ukraine compelled many nations to pursue conflict de-escalation, problem-solving, and prioritizing national interests.

The researcher highlighted the resolution of the tense Iran-Gulf relations, with successful normalization and resumption of ties with Kuwait, the UAE, and Saudi Arabia.

Khattab also mentioned the possibility of China mediating a historic agreement similar to the Saudi-Iranian accord, which could help bridge the gap between Cairo and Tehran.

This possibility arises from China's strategic interest in competing with the US for influence in the region.

Khattab further elaborated that achieving this scenario would require Egypt’s responsiveness to Iran’s acceptance of Omani mediation to restore relations.

Egypt should engage with the supportive statements from Iranian officials regarding reconciliation and overcome hesitation by embracing dialogue and negotiation.

Khattab emphasized that Iran must back its statements and welcoming gestures towards restoring relations with tangible steps that build trust and seriousness in Egypt’s ongoing efforts for reconciliation.

Historically, Iran has been the one to step back from re-establishing relations in previous attempts.



COP29 - How Does $300 Billion Stack up?

A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)
A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)
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COP29 - How Does $300 Billion Stack up?

A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)
A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)

Countries agreed at the UN's COP29 climate conference to spend $300 billion on annual climate finance. Here are some ways of understanding what that sum is worth:

MILITARY MIGHT

In 2023, governments around the globe spent $6.7 billion a day on military expenditure, according to the Stockholm International Peace Research Institute.

That means the $300 billion annual climate finance target equates to 45 days of global military spending.

BURNING OIL

$300 billion is currently the price tag for all the crude oil used by the world in a little over 40 days, according to Reuters calculations based on global crude oil demand of approximately 100 million barrels/day and end-November Brent crude oil prices.

ELON MUSK

According to Forbes, Elon Musk's net worth stood at $321.7 billion in late November. The world's richest man and owner of social media platform X has co-founded more than half a dozen companies, including electric car maker Tesla and rocket producer SpaceX.

STORM DAMAGE

Hurricane Katrina, one of the most devastating and deadliest cyclones in US history, caused $200 billion in damage alone in 2005.

This year's climate-fueled Hurricane Helene could end up costing up to $250 billion in economic losses and damages in the US, according to estimates by AccuWeather. While preliminary estimates by Morningstar DBRS suggest Hurricane Milton, also supercharged by ocean heat, could cost both the insured and uninsured nearly $100 billion.

BEAUTY BUYS

The global luxury goods market is valued at 363 billion euros ($378 billion) in 2024, according to Bain & Company.

COPPER PLATED

The GDP of Chile - the world's largest copper producing country - stood at $335.5 billion in 2023, according to World Bank data.

GREECE'S BAIL OUT

Euro zone countries and the International Monetary Fund spent some 260 billion euros ($271 billion) between 2010 and 2018 on bailing out Greece - the biggest sovereign bailout in economic history.

BRITISH BONDS

Britain's new government needs to borrow more to fund budget plans. Gilt issuance is expected to rise to 296.9 billion pounds ($372.05 billion) for the current financial year.

TECH TALLY

A 10% share of tech giant Microsoft is worth just over $300 billion, according to LSEG data. Meanwhile the market cap for US oil major Chevron stood at $292 billion.

CRYPTO

The annual climate finance target amounts to 75% of the total value of the global market for crypto currency Ether, the world's second-largest cryptocurrency.

Alternatively, 3 million Bitcoin would cover the annual climate finance target as the world's largest cryptocurrency closes in on the $100,000 mark following a rally fueled by Donald Trump winning the Nov. 5 US presidential election.