Egypt-Israel Relations Beyond Security Threats
July 20, 2021, 2:25 pm

Egypt-Israel Relations Beyond Security Threats

Dalia Ziada

After twenty years of war and four decades of cold peace, the relationship between Egypt and Israel is finally taking the form of a normal relationship between two normal neighbor states. In the past two years, in particular, the Egyptian-Israeli relationship started to take a healthier shape where points of bilateral cooperation outweighed the many obstacles raised by regional disagreements. However, greater efforts are needed to sustain this emerging bond and avoid rolling back to coldness under the pressure of regional conflicts, wherein the two countries are directly or indirectly involved.

Last week, Egypt’s President Abdel Fattah El-Sisi sent a letter to the new Israeli President, Isaac Herzog, to congratulate him on winning the elections. In his letter, President El-Sisi expressed hope that the new political shifts in Israel “will contribute to further strengthening the culture of peace,” especially in regards to achieving a just and lasting solution to the Palestinian cause. “I very much look forward to your contribution to this effect so that our region can eventually enjoy the peace that we all aspire to;” President El-Sisi wrote.

In late June, President El-Sisi spoke on the phone with the new Prime Minister Naftali Bennett to congratulate him on finally succeeding in building up the new coalition government in Israel. The two leaders discussed several issues of common interest, including the situation in Gaza and the Egypt-brokered ceasefire between Hamas and Israel. A few weeks before, the Egyptian Foreign Minister spoke on phone with his Israeli counterpart, Yair Lapid, who also co-leads the new Israeli coalition government with Prime Minister Bennett. In mid-July, both foreign ministers met in person in Brussels, on the sidelines of the European Union Foreign Affairs Council meeting.

The relationship between Egypt and Israel has been constantly improving since President El-Sisi took office in mid-2014. This important transformation was mainly motivated by the historical political transformations that took place, inside Egypt, between the revolution against Mubarak in January 2011 and overthrowing the Muslim Brotherhood regime in June 2013. In the aftermath of the Arab Spring revolutions, it was inevitable for the two neighbor states to cooperate against common threats posed by non-state actors and terrorist organizations that spread all over the Middle East.

In 2014, Israel was one of the very few non-Arab countries, which understood why the Egyptian military had to respond to people’s call to remove the theocratic regime of the Muslim Brotherhood from power before they turn Egypt into a Sunni copy of Iran. While Hamas was leaking weapons and food to affiliate terrorists in Sinai, such as Beit al-Maqdes group, Israel cooperated with Egypt on amending the 1979 peace treaty to allow military equipment and personnel to enter Zone C in northern Sinai to fight against terrorists. By 2015, the news about security cooperation between Egypt and Israel, in North Sinai, were making news headlines. By the end of 2017, the security cooperation between Egypt and Israel successfully managed to control Hamas affiliated terrorists and end the presence of the Islamic State (ISIS) in that area.

History tells that the cooperation, which is motivated by deterring a common security threat, is usually temporary and short-lived. As soon as the security threat is removed, the cooperating parties tend to withdraw from cooperation and go back to their normal disagreements. However, this was not the case for the modern form of Egypt-Israel relations. Fortunately, in 2018, the gas discoveries in the eastern Mediterranean provided a common project for the two countries to cooperate on. Today, Egypt and Israel are partnering on several projects to extract and export gas and electricity to Europe. There is also a common desire to increase the trade balance between the two countries which currently stands at less than 15 million US dollars, according to World Bank data for the year 2019.

The election of a new government in Israel is a good opportunity to push forward the Egyptian-Israeli relations, especially in light of the positive attitude currently adopted by senior Egyptian and Israeli officials towards each other. For this to happen, the leaders need to focus on the opportunities that they can bilaterally benefiting from, especially in the economic sector, rather than focusing the majority of their cooperation efforts on fighting security threats and solving the endless geopolitical dilemmas of the Middle East.

BY: Dalia Ziada

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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.