What Impact Will Egyptian-Turkish Rapprochement Have on Resolving Regional Crises?

Sisi and Erdogan stressed the need for an immediate ceasefire in Gaza. (Egyptian Presidency)
Sisi and Erdogan stressed the need for an immediate ceasefire in Gaza. (Egyptian Presidency)
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What Impact Will Egyptian-Turkish Rapprochement Have on Resolving Regional Crises?

Sisi and Erdogan stressed the need for an immediate ceasefire in Gaza. (Egyptian Presidency)
Sisi and Erdogan stressed the need for an immediate ceasefire in Gaza. (Egyptian Presidency)

Egyptian President Abdel Fattah al-Sisi’s visit to Türkiye and his meeting with President Recep Tayyip Erdogan raised questions about the potential impact of Egyptian-Turkish rapprochement on resolving regional crises, especially after discussions by the joint Strategic Cooperation Council focused on the situation in six Arab nations.

Experts suggest that the alignment between Cairo and Ankara on certain regional crises could lead to a significant shift toward resolving these issues. They emphasized that the Egyptian-Turkish approach could break through in several regional files.

Sisi visited Ankara on Wednesday, following an invitation from Erdogan during his trip to Cairo in February. The Egyptian president described the visit as reflecting a shared will to start a new phase of friendship and cooperation between his country and Türkiye given their pivotal roles in their regional and international surroundings.

The discussions between Sisi and Erdogan highlighted a convergence in views on regional issues, especially the situation in Gaza and Israel’s violations of Palestinian rights.

Additionally, the Strategic Cooperation Council meeting, chaired by the two presidents, addressed cooperation between their countries on six files and Arab issues, including the situation in Gaza, the war in Sudan, tensions in Somalia, and the conditions in Libya, Syria, and Iraq, according to a joint statement issued after the meeting.

Taha Ouda, a researcher in international relations in Ankara, pointed to the significance of the shared positions between Egypt and Türkiye on Gaza, Sudan, and Libya. He predicted that the coming period would witness major shifts in the foreign policies of both countries over regional crises. He also noted that the exchange of visits between Sisi and Erdogan signifies a new era of political and economic cooperation between their countries.

Dr. Tarek Fahmy, a professor of political science at Cairo University, told Asharq Al-Awsat that the Egyptian-Turkish approach will likely lead to breakthroughs in several regional files.

He explained that both countries are driven to achieve mutual interests and coordinate efforts to serve their respective priorities. He viewed the normalization of relations between Cairo and Ankara as a crucial step in light of regional developments.

Egyptian and Turkish officials are seen at the Strategic Cooperation Council meeting. (Egyptian Presidency)

During a joint press conference with Erdogan, Sisi emphasized the unified stance of Egypt and Türkiye in calling for an immediate ceasefire in Gaza and rejecting Israel’s current escalation in the West Bank.

They also called for a pathway that fulfills the aspirations of the Palestinian people to establish their independent state according to the June 4, 1967, borders, with East Jerusalem as its capital, in line with relevant international resolutions.

Fahmy further pointed out that elevating relations between Cairo and Ankara to a revived strategic dialogue will lead to a qualitative shift in addressing regional crises, including cooperation in the Eastern Mediterranean, and the situation in Libya and the Horn of Africa.

He emphasized the coordination mechanism between the two countries, with Egypt playing a mediating role in the Syrian conflict, where Türkiye is involved, in exchange for Türkiye’s mediation in the Nile Basin issue and efforts to resolve tensions in the Red Sea.

The two presidents agreed on consultations to achieve security and political stability in Libya, stressing the importance of ending the prolonged crisis by holding simultaneous presidential and parliamentary elections, removing illegal foreign forces and mercenaries, and dismantling armed militias, allowing Libya to overcome its divisions and restore security and stability, said the Strategic Cooperation Council declaration.

The talks also addressed the crisis in Sudan and Egypt’s efforts, in cooperation with various parties, to secure a ceasefire and promote a political solution. Regarding the Horn of Africa, Sisi and Erdogan agreed on the need to preserve Somalia’s unity, sovereignty, and territorial integrity against challenges.

Former Assistant Egyptian Foreign Minister Ambassador Gamal Bayoumi noted that economic and investment cooperation takes priority over coordination on regional issues. He stressed that energy and gas cooperation in the Eastern Mediterranean would be among the first areas of collaboration between Egypt and Türkiye.



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.