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Another Episode of the Tiran and Sanafir Crisis

The Egyptian state has been stretching its hands in all directions, in hope to block some of the consequences of the compounding global crises on the domestic economy and politics. Meanwhile, an old political crisis related to the uninhabited islands of Tiran and Sanafir, in the Red Sea, is slowly floating back to the surface with a new load of misunderstandings.
On May 24th, the Israeli correspondent of Axios news website leaked details about a trilateral negotiation between Egypt, Saudi Arabia, and Israel about the Tiran and Sanafir islands in the Red Sea. Brett MacGurk, the White House Middle East Coordinator, is the mediator of the negotiations.
The western media is celebrating the news as a step for the long-aspired diplomatic normalization between Israel and Saudi Arabia. On the flip side, the Egyptian and Arab media reaction is standing somewhere between wrath and loathe. They are claiming that Israel and the United States are facilitating the cession of sovereignty rights over the islands from Egypt to Saudi Arabia. However, both western and Arab claims are utterly wrong. The negotiation is neither about normalizing ties between Saudi Arabia and Israel, nor about deciding which state owns the islands.
The issue of who has the sovereignty rights over the twin islands had already been settled in mid-2017, when the Egyptian and the Saudi governments signed an agreement on maritime delimitations in the Red Sea. The agreement clearly situated the Tiran and Sanafir islands within the Exclusive Economic Zone (EEZ) of Saudi Arabia. The decision was endorsed by the Egyptian parliament and judiciary, after a year of internal political tensions and legal disputes, instigated by biased media reports that falsely claimed that President El-Sisi had sold the islands to Saudi Arabia in exchange for money.
Likewise, it is still too early to speak about normalizing ties between Israel and Saudi Arabia. In generalized terms, the American and western observers always fall in the mistake of treating Saudi Arabia as just another country in the Arab Gulf region. In that sense, they assume that if other Arab Gulf countries have already signed a peace treaty with Israel, then Saudi Arabia will follow suit. The truth is, Saudi Arabia is literally the mother of the Gulf countries, in terms with history, culture, demography, and even the geographic size and location.
Saudi Arabia existed long before the other Arab Gulf countries has been established by tribes originating from the land of Hijaz, and also long before the foundation of Israel. That puts a huge moral responsibility on Saudi Arabia that makes it very careful with its regional policies, especially if it is about a thorny issue like normalizing ties with Israel. Last week, the Saudi Foreign Minister told the World Economic Forum in Davos that normalizing ties with Israel is “an end result of a long path” of compromising bilateral and regional disagreements, that include solving the Israel-Palestinian conflict.
In parallel, the list of demands that Israel is putting on the table of the current negotiations tells that the Israeli government may be using the twin islands issue to get more economic benefits from neighbor Saudi, without necessarily getting to the point of normalizing ties, which they know is still a difficult goal. For example, Israel asked for opening the Saudi airspace for Israeli flights, in exchange for Israel’s approval to the outcomes of negotiations.
In essence, the current US-facilitated negotiation between Saudi Arabia, Egypt, and Israel is about dismissing or limiting the scope of work of the American-led multinational forces and observers in Sinai (MFO), on the twin islands of Tiran and Sanafir. That is mainly to enable Saudi Arabia to fully administer the islands and benefit from their perfect geo-strategic location in the crosshairs of the Gulf of Aqaba, the Gulf of Suez, and the southern ports of Israel. Currently, the MFO is supervising the islands and the maritime movement around them, per the stipulations of the 1979 Peace Treaty between Egypt and Israel. For that to change, Israel’s approval is a must.
In the heat of the initial political controversy over the Saudi-Egypt agreement, in 2016, Israel gave a written consent to the procedure of returning Tiran and Sanafir islands to Saudi sovereignty. Moshe Ya’alon, the then Minister of Defense, in the Israel government of Netanyahu, told the press that the MFO was also approached by Saudi Arabia and Egypt to get its approval. “The four parties – the Saudis, the Egyptians, Israel and the United States – agreed to transfer the responsibility of the islands, on condition that the Saudis fill in the Egyptians’ shoes in the military appendix of the (Egypt-Israel) peace treaty;” Ya’alon confirmed.
However, it seems that after the installation of a new government in Israel, Saudi Arabia found it a good opportunity to re-open the negotiations on the issue and try to completely remove the MFO from the islands. Likewise, Israel found it a good opportunity to ask for economic benefits in return, and perhaps bringing Saudi Arabia to the point of accepting normalization. Whatever the final decision is, both of them will benefit in some way.
Still, Egypt’s involvement in the process, during such a sensitive time of domestic political and economic stress, may expose Egypt to unwanted nuances. It may stir the anger of the Egyptians who opposed the initial move of giving the islands back to Saudi Arabia, in 2016, and renew protests and street riot around the issue. Learning from the lessons of the first episode of the crisis, the Egyptian state needs to be very transparent and not to hesitate about sharing all details with the public citizens. Otherwise, they will fall an easy prey to the fake news and the biased media that may shake the bond of trust between the Egyptians and their political leadership.
BY: Dalia Ziada
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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