Israel Offers to Clear Egypt’s IMF Debt in Exchange to Relocate Gaza Residents to the Sinai Peninsula

Israel Offers to Clear Egypt’s IMF Debt in Exchange to Relocate Gaza Residents to the Sinai Peninsula
By Nasiru Eneji Abdulrasheed
In a bid to quell ongoing tensions in the Gaza Strip and potentially reshape the Middle Eastern geopolitical landscape, Israel has made an audacious overture to Egypt. It has proposed to pay off Egypt’s staggering debt to the International Monetary Fund (IMF), which, according to the IMF website, stands at a colossal $12,387,130,007. The catch? Egypt must agree to relocate the residents of Gaza to the Sinai Peninsula.

This bold proposition doesn’t emerge from a vacuum. It’s embedded within an intricate web of regional politics, historical grievances, and strategic manoeuvring. To fully appreciate its implications, we must first revisit the broader context. Israel and Egypt share a fraught history punctuated by wars and uneasy truces. However, the two nations have also found common ground in their mutual apprehension towards Hamas, the political organization that currently governs the Gaza Strip. Both view Hamas’ rule as a destabilizing factor that fuels regional unrest.

Meanwhile, the Gaza Strip—home to nearly two million Palestinians—has long been a flashpoint in the Israeli-Palestinian conflict. Its residents endure dire living conditions, exacerbated by an Israeli-Egyptian blockade implemented after Hamas seized power in 2007. The relocation of Gazans to the Sinai Peninsula could potentially defuse the volatile situation.

A Calculated Gamble

Israel’s offer is a calculated gamble, potentially a win-win situation for all parties involved. For Egypt, the elimination of its IMF debt would provide much-needed breathing space to its struggling economy. For Israel, the relocation of Gaza’s residents could alleviate a persistent security concern.

However, the proposal is not without its pitfalls. It risks being perceived as an attempt to displace a large population, which could stoke further tensions. The reaction of the Gazan people—who have long endured hardship and displacement—remains uncertain.

Changing the Rules of the Game?

Should Egypt accept Israel’s offer, it could dramatically alter the dynamics of the Middle East. It might also set a precedent for how international debts can be leveraged in geopolitical negotiations. However, the proposal also raises numerous ethical and practical questions, the answers to which will unfold in time.

As the world watches, the decision now rests with Egypt. The move could mark a turning point, not just in the tale of these two nations, but also in the broader narrative of Middle Eastern politics.

 

November 2, 2023 | 16 Comments »

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16 Comments / 16 Comments

  1. An APPEARANCE of super duper militancy.

    Gaza when and IF it is ever cleaned of Hamas should become part of Israel proper. If the world screams, let them – they are going to anyway. Israel cannot please the Nations, so stop trying..

    1

    I know you mean stop trying to please the world. Yes.

    But can mean something else too

    I do think
    .
    Israel as a guide to the world is a good idea in every way INCLUDING THE PRESENT WAR IN GAZA

  2. Peloni

    My starting point in everything is STATE POWER

    That is Israeli state power = leadership

    Real leadership

    There are for me options as I also would promote a Jewish village for each massacred family

    But the basis is STATE POWER

  3. I mentioned rewilding and sea regeneration as a possible future for Gaza but I heard nothing from anybody

    Well better that than to keep the current occupiers in their present environs. That being said, I don’t think creating a depopulation zone in Gaza is a viable solution, but rather it would simply serve to preserve the issue in perpetuity til one side or the other was bold enough to take possession of it. In fact, leaving the area vacant would simply create a context under which the vile Pals might constantly demand their unoccupied property back. By Israel not taking possession of Gaza and making use of it after evicting its current savage tenants, Israel would only be substantiating its ownership of the land as being in doubt with the most recent tenants being the Pals.

  4. Personally I never thought that Sisi would accept that money. They would kill him faster than Sadat.

    His defeat of Morsi showed he’s not a fool.

    I’m not expert in all these issues of the area but it was what I call magical thinking.

    Could I ask why all countries if they oppose Hamas why do they not send THEIR soldiers to fight and die

    At least that demand has propaganda value.

    I won’t raise again my point about the power of the state. Just finally the state of Israel can issue any policy it decided re Gaza post war. And stick to it. I mentioned rewilding and sea regeneration as a possible future for Gaza but I heard nothing from anybody

  5. So Egypt says no. Perhaps they will change their position and perhaps they will not. What is important irregardless of what Egypt does is that the Israeli govt is looking to relocate the Gazans and pay handsomely anyone willing to take and contain them. This is a profound seismic shift in Israel’s policies which might completely change the future of the entire region. Never forget that Jordan is Palestine and herein lies the potential if Sisi persists in maintaining his position on this point.

  6. In the meantime, Israel has to decide what to do with the Gaza Strip. If they allow Israelis to move there, the whole world will scream that the Jews stole that strip of land.

    Gaza when and IF it is ever cleaned of Hamas should become part of Israel proper. If the world screams, let them – they are going to anyway. Israel cannot please the Nations, so stop trying..

  7. What happens the day after the Gazans move to Sinai and Israel has paid off Egypt’s debts?
    Let’s speculate; Egypt takes a quick loan from the IMF up front. Then the Gazans scream like all the Palestinians and want the land they stole back and seek ways to accomplish that.
    In the meantime, Israel has to decide what to do with the Gaza Strip. If they allow Israelis to move there, the whole world will scream that the Jews stole that strip of land. If they low Israeli Arabs to move they (naturally with incentives), we’re back to the start position.
    If we listen to Biden, we can throw our nukes on Israel.

  8. About a year ago, Egypt was selling 0off some of its assets to cover its debt. I suggested that Isreal should give them the money they need in exchange for taking in the Gazans.

  9. @Raphael
    It has been a long time since Sisi removed Morsi from power and much has changed in that time. You are correct, of course, in suggesting that Sisi walks a tight rope, but the rope he walks is of his own making.

    Sisi is a spendthrift without the financial means to support his massive building projects and extensive military expenditures. The consequence of this rich mans appetite with a poor man’s purse is that a majority of the nation lie just above the poverty line, even after having recently received a massive IMF loan to help subsidize the failing Egyptian economy.

    While Sisi has fought the MB, he uses this accusation wantonly aimed at all who would oppose him, earning him a great deal of scrutiny from the US and others for his human rights violations (Egypt has the 3rd highest death penalties in the world). Additionally, there has been no attempt to reduce the antisemitic teachings in Egypt, which helps maintain an ongoing tension between the Egyptian population and their Israeli neighbors.

    Furthermore, while he has a peace treaty with Israel, it is Egypt which is the source of weapon transfers to Hamas with which they routinely pummel Israel, and when the Israelis raise this issue with the Egyptians, rather than addressing the issue, the Egyptians simply warn Israel that they don’t want to threaten the stability of the existing treaty with Israel. More recently, shortly after October 7, as Israel was calling on Gazans to leave Gaza, Sisi authorized the first permit in his 10yr reign for a public protest, and in doing so he urged his public to go protest against Israel invading Gaza at the Egyptian-Gaza border.

    He has been making strides towards reestablishing good relations with Iran, and even as other Sunni nations have done so under the guise of moving closer to China, Egypt began doing so two years ago and they have made significant progress in that time with Iran recently expressing that there is nothing blocking the reestablishment of normal relations between the two countries.

    Regarding your comparison between Sisi and Erdogan, I would argue that it is not an equitable comparison. They are both unreliable scoundrels with dreadful economies (with Erdogan being far worse on both of these traits), but Egypt is significantly under US influence while Erdogan is only influenced by his own desire to successfully play everyone against everyone as he pursues his dream of recreating the Ottoman empire. Also, Erdogan controls the entrance to the Black Sea and remains a NATO member, providing him a level of geopolitical influence with which Sisi could not boast. Sisi is not a skilled politician, but rather manages his political campaigns as if he was actually conducting a coup, ironically enough. Hence, Sisi lacks both the means and the political aptitude to even attempt half the outrages which Erdogan has carried out over the years.

    As to moving the Gazans to the Sinai, it would only require Sisi to carry out his treaty obligations to not accept the bribes being paid to allow the weapons transfers to the Gaza enclave to keep the relocated Gazans weapon-free. Also, with the Gazans being moved to Sinai, should they be rearmed, they would pose a threat to both Israel and Egypt, and thus provide Sisi with a greater motivation to actually not accept the bribes nor allow the rearming of the relocated Gazans.

    Sisi is a treaty partner to Israel, and has been well paid for his role in that endeavor. Yet he fails to manage his economy, restructure his education system or prevent arms transfers to Gaza. All of these facts have led to the tight rope he walks being as narrow as it is. So I wouldn’t agree that we should cut him some slack, and in fact, I would argue that doing so is actually why Sisi has conducted himself as he has over the years.

    For instance, rather than accepting Sisi’s veiled threats/concerns about the stability of the treaty, Israel should hold him to account on the weapons transfers at a minimum.

    One thing more to consider. Whereas it is no doubt an earnest desire to not have the Pals from Gaza in Egypt, I would argue that Sisi’s recent rapproachment with Iran likely plays no small role in the calculus to refuse to allow the Gazan evacuation. Indeed, if Gaza is cleared of its residents, and Egypt is responsible for keeping it arms free, Gaza would pose no threat to either Israel or Egypt, and only Iran would be at a loss as the Gazan cleft would not only be eliminated but it would also serve as a precedent by which Israel might and should resolve the cleft remaining in J&S as well.

    Notably, Israel has just offered to resolve all of Egypts $12.3 billion debt with the IMF if they will relocate Gaza’s residents, thus implementing the policy which was recently reported and posted here on Israpundit. This is a very exciting, audacious opportunity for both Israel and Egypt. If Egypt does not accept this deal, I would further argue that it would only be due to its relationship with Iran which would prevent it from accepting such a bargain.