http://weekly.ahram.org.eg/2009/973/re6.htm

19 - 25 November 2009
Issue No. 973
lished in Cairo by AL-AHRAM established in 1875

Face to face with Iran
Egypt has been moving closer to Iraq, but does that mean facing up to Iran's 
regional ambitions, asks Salah Hemeid 

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Egypt has sent an ambassador to Iraq for the first time since its last envoy 
was killed by Al-Qaeda militants in 2005. The move underscores Egypt's 
intentions to improve relations with the Shia and Kurdish-led government, which 
many Egyptians have dismissed as sectarian and not representative of all Iraqis.

Upon his arrival, Sherif Kamal Shahin, a diplomat with 27 years' experience and 
a former ambassador to Zambia, said that Egypt supported the political process 
in Iraq and efforts to "maintain stability, security and territorial 
integrity". He even predicted "a quantitative leap" in bilateral relations in 
the near future.

Cairo has had no official diplomatic representative in Iraq since the July 2005 
abduction and murder of its diplomat Ihab El-Sherif in Baghdad one month into 
his posting, amid a wave of killings blamed on former Al-Qaeda in Iraq leader 
Abu Mussab Al-Zarqawi, who claimed responsibility for the murder. By sending 
El-Sherif, Egypt became the first Arab nation to send an ambassador to 
post-Saddam Iraq, and that could have infuriated armed groups resisting the 
US-backed Iraqi government.

Shahin's arrival in Baghdad comes just days after a visit to Egypt by Iraqi 
Foreign Minister Hoshyar Zebari, who led a 40-strong delegation to bolster 
trade, investment and cooperation in the security field. In Cairo, Zebari 
praised Egypt for "showing regional leadership by taking the decision to 
appoint Shahin," who is a veteran diplomat with experience that includes 
postings in Tokyo, Athens and Beirut.

Relations between the two countries have been warming since the October 2008 
visit to Iraq by Egyptian Foreign Minister Ahmed Abul-Gheit, the first visit by 
an Egyptian foreign minister to Iraq in 18 years. The two countries severed 
diplomatic ties after Saddam Hussein's 1990 invasion of Kuwait, which Egypt 
opposed. 

Before that took place, Egypt was an ally of Iraq in its 1980-1988 war with 
Iran, and the two countries joined the Arab Cooperation Council, along with 
Jordan and Yemen, which is a bloc aimed at bolstering political and economic 
cooperation. Egypt also ranked as Iraq's third-largest trading partner with 
annual exports worth nearly $2 billion, while remittances in dollars from 
Egyptians working in Iraq were worth further billions of dollars per year, 
according to figures from the Central Bank of Iraq at the time.

In the 1970s, tens of thousands of Egyptians moved to Iraq, where the 
government allowed them to stay unconditionally without the need for a visa for 
any length of time. During the Iraq-Iran war, Saddam Hussein ordered the Iraqi 
authorities to further facilitate the arrival of Egyptian labour. By the end of 
1981, the number of Egyptians working in Iraq had reached more than three 
million, most of them in ministries and government institutions, but many also 
working in private-sector factories, farms and service projects.

By 1987, there were still as many as three million Egyptians in Iraq. Saddam's 
government passed laws to ease regulations on Egyptians working in Iraq, 
including giving them the right to set up their own companies. They were exempt 
from taxes and had unlimited foreign fund transfers. They could register their 
children for free in Iraqi public schools and universities and had free access 
to hospitals and health centres. They also had the right to Iraqi nationality.

With the 1991 Gulf War, in which Egypt participated in the US-led coalition 
that drove Iraq from Kuwait, all this evaporated. However, the two countries 
resumed diplomatic relations at the level of chargé d'affaires in 1994. They 
also resumed trade cooperation, and Egypt again ranked first among Arab 
countries having trade relations with Iraq, with a volume of trade that reached 
some $1 billion. 

After the 2003 US-led invasion of Iraq that toppled Saddam, Egyptian exports to 
Iraq came to a standstill, as Cairo was reluctant to do business with Iraq's 
new Shia and Kurdish rulers. 

However, following Abul-Gheit's visit economic ties began to improve rapidly 
and Egyptian goods began pouring into the Iraqi market. Cairo has sold Baghdad 
some $350 million worth of merchandise this year, and the two countries have 
said that they intend to set up a joint free-trade zone that should double 
Egyptian exports. Egyptian Minister of petroleum Sameh Fahmi, who accompanied 
Abul- Gheit, reported later that Egypt would be the first Arab nation to have a 
presence in Iraq through cooperation in the oil field.

Egyptian Minister of Investment Mahmoud Mohieldin also travelled to Baghdad in 
September accompanied by businessmen and representatives of public-sector 
companies to probe investment and trade opportunities, while an Iraqi 
delegation led by the chairman of the Iraqi National Investment Commission, 
Sami Raouf Al-Araji, visited Cairo in October to offer business opportunities 
to Egyptian investors.

At first glance, these increases in economic exchanges could indicate that 
business is outpacing politics in re-born Egyptian-Iraqi relations. Trade is a 
high-profile target, but the reasons behind restoring relations are manifold as 
the two countries move ahead in dismantling the barriers that have divided them 
for nearly 20 years. Officials from the two countries say that they intend to 
draft what they call "a strategic agreement", although they have not divulged 
details or said if this could amount to cooperation or coordination in 
political and security matters.

For Iraqis, Egyptian moves to open up relations are highly significant as many 
other Arab countries still shun Shia Prime Minister Nuri Al-Maliki's 
government, or pay only lip service to intentions of improving relations. 
Regional powerhouse Saudi Arabia, for example, has remained on the sidelines, 
saying it has been waiting until security improves, while relations with Syria 
have deteriorated over Iraq's accusations that Damascus has supported 
insurgents trying to destabilise the Iraqi government.

As for Egypt, moves to upgrade its relations with Iraq seem also to have been 
prompted by what Egyptian officials call their country's national security, a 
reference to Cairo's increasing fears about Iran's mounting influence in Iraq. 
Like many other Arab countries, Egypt is worried about Iran's interference in 
Iraq, which Tehran is using to bolster its regional influence.

Also like other Arab countries, Egypt is beginning to worry that any US 
rapprochement with Iran could ultimately lead to a nuclear-armed, non-Arab, and 
Shia superpower expanding its influence further in the region. It fears that 
the offer of an improvement in US-Iran ties held out by US President Barack 
Obama could go too far by offering concessions to a powerful regional player 
long regarded with suspicion.

Egyptian officials have not spelled out any strategy to face up to Iran's role 
in Iraq, but they say that Cairo is determined to bring Iraq back into the Arab 
fold. As a general strategy, Egypt feels that by helping to break Iraq's 
isolation and leading other Arab countries to do the same it can prevent the 
Shia-led government from becoming an Iranian vassal. 

Egypt can also help in Iraq's national-reconciliation efforts by facilitating 
communal dialogue and bridging the gap between rival sectarian and political 
groups.

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