Sisi Says Construction in Sinai is the ‘First Line of Defense’

Egypt's President Abdel Fattah El-Sisi lays a wreath over President Mohamed Anwar El-Sadat's tomb (Egyptian Presidency)
Egypt's President Abdel Fattah El-Sisi lays a wreath over President Mohamed Anwar El-Sadat's tomb (Egyptian Presidency)
TT

Sisi Says Construction in Sinai is the ‘First Line of Defense’

Egypt's President Abdel Fattah El-Sisi lays a wreath over President Mohamed Anwar El-Sadat's tomb (Egyptian Presidency)
Egypt's President Abdel Fattah El-Sisi lays a wreath over President Mohamed Anwar El-Sadat's tomb (Egyptian Presidency)

Egyptian President Abdel Fattah El-Sisi said the reconstruction of the Sinai Peninsula is its "first line of defense" against the attacks of armed groups.

North Sinai has been a hub for extremist groups loyal to ISIS for years, and the area witnessed several terrorist operations following the protests on January 25, 2011. The attacks increased after the ouster of former President Mohamed Morsi in July 2013, before the Egyptian forces waged a fierce war against these groups.

The Egyptian government is working to bring about a "comprehensive developmental quantum leap" in Sinai in all service sectors, taking advantage of the "stability" after it "defeated terrorism," according to North Sinai Governor Mohamed Abdel-Fadil Shousha.

In a recorded speech on the occasion of the 40th anniversary of the liberation of Sinai from the Israeli occupation, Sisi said that Egyptians view Sinai as "the jewel of Egypt's crown and this nation's source of honor and pride," adding that the day "forever remain embedded in the memory of our nation, revered for embodying the willpower and determination."

Sisi saluted Egypt's martyrs and "men of Egyptian diplomacy" who fought the battle of negotiation with patience and stamina to restore Sinai.

He also saluted the late President Mohamed Anwar el-Sadat, who took decisions of war and peace until the entire land was restored, "starting a new phase of construction in dear Sinai to serve as the first line of defense."

The President stressed that in the highly complex regional and international situation, "maximizing the capabilities of the state's comprehensive powers" is at the "top of the Egyptian State's priorities."

He reiterated that those who want "peace must possess the necessary power to protect it."

"As much attention is given to our military capability, we are also moving, in tandem, to elevate the rest of the state's comprehensive capabilities, the most important of which is its economic capacity," said Sisi.

Egypt aspires to establish a robust national economy capable of facing various crises and help achieve high growth rates that can provide many job opportunities, concluded Sisi.



Israeli Strikes in Gaza Kill 3 Children and 6 Adults

A Palestinian inspects a house destroyed in an Israeli airstrike in northern Gaza City, Gaza Strip, 18 July 2026. EPA/MOHAMMED SABER
A Palestinian inspects a house destroyed in an Israeli airstrike in northern Gaza City, Gaza Strip, 18 July 2026. EPA/MOHAMMED SABER
TT

Israeli Strikes in Gaza Kill 3 Children and 6 Adults

A Palestinian inspects a house destroyed in an Israeli airstrike in northern Gaza City, Gaza Strip, 18 July 2026. EPA/MOHAMMED SABER
A Palestinian inspects a house destroyed in an Israeli airstrike in northern Gaza City, Gaza Strip, 18 July 2026. EPA/MOHAMMED SABER

Israeli strikes in Gaza City on Saturday killed at least nine Palestinians, including three children, hospital officials said.

A strike on an apartment in the Nasr neighborhood killed at least five people, including the children between the ages of 8 and 18, said Mohammed Abu Selmiya, director of Shifa Hospital where the bodies were taken. Six other people were wounded, including four children between the ages of 8 and 16, he said.

Israel's military said it targeted Hamas infrastructure and had located Hamas militants in the area, without elaborating.

Another Israeli strike hit a group of people in the Zeitoun neighborhood, killing four and wounding another critically, The Associated Press quoted health officials as saying.

The Israeli military said it targeted a “Hamas terrorist" and it was looking into the results of the strike.

Palestinians have reported an increase in the scale of Israeli strikes across the enclave over the past few days.

Despite a ceasefire agreement reached in October between Israel and the Hamas militant group, Israel still carries out near-daily attacks across the territory. It says it is targeting Hamas and other militants who pose a threat.

Hamas and Israel have traded accusations of violating the ceasefire.

At least 1,127 Palestinians, including at least 260 children, have been killed since the ceasefire, according to Gaza’s Health Ministry. Five Israeli soldiers have been killed in that time.


Hezbollah Cuts Ties with Lebanon's Presidency While Sparing the Army

Lebanese President Joseph Aoun meets with Army Commander Rodolphe Haykal during an earlier meeting. (Lebanese Presidency)
Lebanese President Joseph Aoun meets with Army Commander Rodolphe Haykal during an earlier meeting. (Lebanese Presidency)
TT

Hezbollah Cuts Ties with Lebanon's Presidency While Sparing the Army

Lebanese President Joseph Aoun meets with Army Commander Rodolphe Haykal during an earlier meeting. (Lebanese Presidency)
Lebanese President Joseph Aoun meets with Army Commander Rodolphe Haykal during an earlier meeting. (Lebanese Presidency)

In recent days, Hezbollah has sharply escalated its confrontation with the Lebanese authorities, particularly the presidency, ahead of President Joseph Aoun's visit to Washington. One of the group's lawmakers openly declared that "the bridges with the authorities have been severed and the consequences will not be favorable."

At the same time, however, Hezbollah has continued to avoid direct confrontation with the Lebanese Army's leadership, despite previously warning that it would treat any party attempting to disarm it by force in the same way it treats the Israeli military.

As Lebanese, American, and Israeli discussions continue over implementing the proposed "pilot zones" in southern Lebanon, a plan that would place those areas under the control of the Lebanese Army while removing both Israeli forces and Hezbollah's military presence, the group's recent escalation appears to signal that it is unwilling to cooperate with the proposal. Hezbollah had previously strongly criticized the framework agreement and its provisions.

No Decision to Use Force

According to military sources, there is "no political or military-security decision to implement the pilot zones by force." The sources told Asharq Al-Awsat that "the issue must be resolved through dialogue and politics, not by placing the Lebanese Army in direct confrontation with Hezbollah, as the consequences would be catastrophic on every level."

After Hezbollah MP Hassan Fadlallah used the parliamentary podium earlier this week to launch a sharp attack on President Joseph Aoun, accusing him of "becoming a political actor who deepens divisions among the Lebanese instead of serving as president and a symbol of national unity," fellow Hezbollah lawmaker Ali Fayyad said on Friday that "the problem with this government has become serious, very serious. The bridges with it have been severed, the possibility of reaching an understanding no longer exists, and the consequences will not be favorable."

Escalation in the Streets?

Hilal Khashan, professor of political science at the American University of Beirut, attributed Hezbollah's escalating rhetoric toward the authorities to what he described as the existential challenges the group currently faces "after finding itself on the chopping block and after the decision was made to eliminate its military wing." He added that "it is not unlikely that Hezbollah will escalate in the streets in the coming days and weeks, despite President Aoun's warning that taking to the streets is a red line."

Speaking to Asharq Al-Awsat, Khashan said the available indications suggest that "Hezbollah is preparing for confrontation and that the next phase will be extremely difficult and dangerous." He added that concerns over divisions within the Lebanese Army if it were forced into a confrontation with Hezbollah are well founded and that the consequences of such a decision should not be underestimated.

According to Khashan, the army commander is fully aware of those risks and is acting accordingly. President Aoun, himself a product of the military establishment, also understands this reality well and is familiar with the army's internal composition.

Khashan believes Hezbollah is currently in a weakened position. However, he argues that strong communal solidarity has led most Lebanese Shiites to rally behind the group, believing that if Hezbollah were ultimately defeated, the gains achieved by the Shiite community over recent decades would come to an end. In their view, they want their community to remain the dominant force in the country.

A Return to Assassinations?

Ali Al-Amin, political writer and editor-in-chief of the Janoubia news website, argues that Hezbollah "is not operating as a Lebanese political party concerned with the national considerations that shape the president's positions on negotiations, Lebanon's foreign relations, or the country's security. Hezbollah today is, in effect, part of Iran's Revolutionary Guard, and its position toward President Joseph Aoun reflects Iran's position toward him."

Asked whether this rhetoric could foreshadow action by Hezbollah against domestic opponents, whether the government or rival political forces, Al-Amin said such a scenario "cannot be ruled out." He suggested it could take various forms, "including assassinations or efforts to stir unrest in the streets." However, he argued that none of these options would ultimately benefit Hezbollah.

"The more Hezbollah attacks President Aoun, the more Lebanese rally around him and the more isolated the party becomes. Any attempt by Hezbollah to provoke internal confrontation would harm everyone, but there is no doubt that Hezbollah itself would be the first to pay the price."

Hezbollah Wants the Army to Remain Neutral

Responding to another question, Al-Amin argued that Hezbollah's efforts to keep the Lebanese Army out of the confrontation are "far from innocent." He said the party has sought to amplify praise for the army as a military institution loved by all, on the condition that it satisfies all political factions by remaining neutral.

Speaking to Asharq Al-Awsat, Al-Amin said Hezbollah wants the army to remain, as it has always preferred, "a force that is effectively sidelined except when its role serves the party's own interests." He pointed to Hezbollah's refusal to hand over its positions to the army when requested, citing the case of Ali al-Taher Hill north of the Litani River. He also recalled the explosion that killed six Lebanese soldiers as they attempted to take control of one of Hezbollah's tunnels in the Tyre district following the November ceasefire agreement.

Al-Amin added that Hezbollah also seeks to exploit any disagreement between the government and the army, "even if merely superficial," in order to deepen and magnify those divisions.


IMF Backs Yemeni Reforms to Restore Economic Stability

An international program aims to reduce Yemen's budget deficit by increasing domestic revenues. (Government media)
An international program aims to reduce Yemen's budget deficit by increasing domestic revenues. (Government media)
TT

IMF Backs Yemeni Reforms to Restore Economic Stability

An international program aims to reduce Yemen's budget deficit by increasing domestic revenues. (Government media)
An international program aims to reduce Yemen's budget deficit by increasing domestic revenues. (Government media)

The Yemeni government and the International Monetary Fund (IMF) have reached a staff-level agreement on an 18-month economic reform program aimed at supporting economic stability, advancing fiscal and monetary reforms, and improving the management of public resources. The program is intended to help Yemen establish a credible reform track record that strengthens confidence among donors and international financial institutions.

The agreement followed talks between an IMF mission and Yemeni officials in Amman, Jordan, from July 5 to 16. The IMF stressed that the proposed program still requires approval by the Fund's management, noting that it is designed to preserve macroeconomic stability amid the continuing impact of the regional conflict while advancing economic and institutional reforms.

The IMF projects that Yemen's economy will contract by 1.5 percent in 2026, marking a fifth consecutive year of economic decline. The downturn is attributed to deteriorating terms of trade caused by the regional conflict, the ongoing energy crisis, and weak domestic demand. However, the Fund expects the economy to begin regaining stability in 2027 as regional conditions improve and economic activity gradually recovers.

The IMF also noted that Yemen will continue to rely heavily on remittances from expatriate workers and donor support to finance imports, particularly humanitarian assistance, given the country's weak public finances and declining traditional sources of revenue. It forecasts that the current account deficit will remain at around 3.4 percent of gross domestic product, while foreign exchange reserves are expected to stay at inadequate levels.

The reform program seeks to reduce the budget deficit during 2026 and 2027 by increasing domestic revenue, following a sharp decline in government spending after oil exports were suspended in 2022.

Fiscal and Monetary Reforms

The IMF said the Yemeni government has already implemented a number of measures, including the liberalization of the customs exchange rate in May, a step expected to increase customs duties and goods and services tax revenues. The authorities have also moved to strengthen tax compliance, particularly among large taxpayers and state-owned enterprises.

The program further includes measures to improve fiscal transparency by bringing previously off-budget revenues and expenditures into the official public accounts, strengthening oversight of government spending, and establishing a Treasury Single Account to improve the management of public resources.

Monetary Policy

On the monetary front, the program focuses on maintaining price stability and gradually rebuilding foreign exchange reserves. It also calls for greater exchange rate flexibility to help absorb external shocks, while reducing reliance on monetary financing of the budget deficit and improving the efficiency of the foreign exchange market.

The program also includes reforms to the financial and banking sector, including the adoption of new bank risk management frameworks, expanded supervision to cover all deposit-taking institutions, publication of audited financial statements for banks, and stronger measures to combat money laundering and terrorist financing.

The IMF said these measures will strengthen Yemen's ability to improve its fiscal position, meet its financial obligations, and create the conditions for broader discussions with international partners on debt restructuring, helping to support more sustainable economic growth in the years ahead.

Yemen and the IMF have agreed on an 18-month economic reform program. (Government media)

Electricity Sector

In the electricity sector, the IMF called for the gradual implementation of a cost recovery plan to improve the financial position of electricity utilities and reduce their reliance on government budget support. It also encouraged efforts to attract new investment to expand power generation capacity and improve the reliability of electricity supplies.

The Fund emphasized that sustained implementation of the agreed reforms will be critical to strengthening Yemen's economic recovery. It said the program represents an important step toward building a track record that would help strengthen confidence among international financial institutions and donors.

At the conclusion of the talks, the IMF mission praised what it described as constructive dialogue and close cooperation with the Yemeni authorities, reaffirming its commitment to continue working with them throughout the implementation of the reform program.