Egypt-Israeli ties face multiple economic challenges

The relations between Israel and Egypt have been facing multiple challenges after the fall of former Egyptian president Hosni Mubarak, whose policy toward Israel drew domestic criticism. The trial of Mubarak on Wednesday also revealed one aspect regarding Egypt’s natural gas to Israel. In one of the charges, prosecutors accused the former president of agreeing with former petroleum minister Sameh Fahmi on signing a contract with the Eastern Mediterranean Gas to supply Israel with natural gas at low prices, causing a loss of 715 million Egyptian pounds (about 120 million U.S. dollars) .

Mubarak denied all the charges against him. But the gas pipeline in Egypt’s Arish has been bombed five times since February, with the latest attack on July 30.

Saboteurs used similar devices and carried out the attack at different locations of the pipeline. But authorities have so far not announced any arrests of suspects. The repairing work is still under way with a plan to enhance the security measures for the pipeline.

“The attacks will harm the bilateral economic relations based on the gas sector,” Gamal El-Gawad, director of the Ahram Center for Political and Strategy Studies, told Xinhua.

No individual or group has claimed responsibility for the bombings targeting the pipeline. But their purpose is just to stop the gas exports to Israel.

According to Gawad, there are many conservative groups in Sinai who refuse to export gas to Israel. There may be a regional hand too, he added.

In April, Egyptian Prime Minister Essam Sharaf said the prices of Egypt’s gas exports would be raised to proper levels, which would bring an increase of income of three to four billion dollars to Egypt.