A Stable ME for a Stable World

Report: July 2022

During his tour of the Middle East, President Joe Biden convened with President Sisi in the city of Jeddah to discuss a wide range of global and regional security challenges.

The Middle East continues to draw the attention of various world powers as their energy priorities have been altered by the Russo-Ukrainian war. Foreign leaders are hustling towards the Middle East to stabilize the region so that the area can pump even more energy to meet global consumer needs. Yet things remain easier said than done as energy needs remain plenty and it would take more than the US President’s visit to Saudi Arabia to solve the global shortage.

 

1- The Socio Economic Situation

Egypt

Egypt and Saudi heads of state reach economic deals worth $7.7 billion. Credit: Aleksandar Mijatovic/Shutterstock.

According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 514,413.

  • Deaths: 24,750

  • As of 15 July 2022, a total of 93,009,661 vaccine doses have been administered.

Affected by the downturn in the global economy, Egypt’s non-oil sector recorded its lowest level in two years on the heels of declined demand, inflation, EGP devaluation, and material shortage. S&P Global, a leading provider of transparent and independent ratings, claimed that the increase in input costs accelerated to a four-year high, pushing up inflation. This meant that companies reported an increase in their expenses which was reflective of a considerable rise in input costs. Translated to actual figures, Egypt’s  Purchasing Managers’ Index dropped to 45.2 last month from 47 in May, remaining below the 50 mark that separates growth from contraction. Thus Egyptian companies suffered while the economy recorded its strongest deterioration  as inflation rose and monetary policies tightened. This is incurring an increase in borrowing costs and price pressures. Supply conditions also remained unable to meet the current demand adding to inflationary pressures. In other words, raw material, for the use of businesses, is increasingly becoming hard to secure.

While Egypt’s economy seems to have contracted during this period, new projects continue to take the news. During the Saudi Prince’s visit to Egypt the two countries signed 14 agreements and memoranda of understandings worth $7.7 billion. The signed agreements span several sectors, including renewable energy, green hydrogen, petroleum, information technology, e-commerce, pharmaceuticals, infrastructure and cybersecurity. According to Medhat al-Sharif, a former member of the parliament’s economic committee, Saudi investments will achieve an important economic return for Egypt, establishing new companies and factories capable of creating job opportunities.

 

Jordan

Tourism in Jordan has made a ‘rapid and remarkable’ recovery, says  Tourism minister. Credit: ArabNews.

 According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 1,705,116.

  • Deaths: 14,070

  • As of 9 July 2022, a total of 10,027,401 vaccine doses have been administered.

 

Jordan’s economy grew by 2.5 per cent in the first quarter of 2022 when compared to the same period in 2021. This improvement was due to growth in the hospitality sector including hotels and restaurants. Quarterly figures revealed that this sector recorded the highest growth at 6.8 per cent, contributing 0.08 percentage points to the GDP. It was followed by the construction sector at 5.3 per cent whose contribution was 0.12 per cent. The mining sector and quarries industries came next at 5.1 per cent, followed by the finance, insurance and business services sector at 4.3 per cent. The Tourism sector was also able to contribute to the economy. According to Tourism Minister Nayef Al-Fayez, Jordan has seen a rapid improvement in its tourism sector thanks to more than 1.9 million visitors to Jordan from the start of 2022 until the end of June. Being an integral part of Jordan’s economy, this proved to be very beneficial as the number of visitors was substantial. Its contribution in actual numbers to the GDP remains to be verified. Another positive note Jordan succeeded in achieving is its reduction of its unemployment rate. According to the Department of Statistics (DoS), Jordan's unemployment rate went down by 2.2 per cent in the first quarter of 2022 to 22.8 per cent, compared with the same quarter of 2021.

Iraq

Electricity lines part of Kuwait-Iraq Grid. They are likely to be constructed in 24 months will have a total transmission capacity of 1800 MW. Credit: arabnews.com

 According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 2,417,719

  • Deaths: 25,277

  • As of 9 July 2022, a total of 18,785,269 vaccine doses have been administered.

 

On the sidelines of the Jeddah Security and Development summit, the Gulf Cooperation Council Interconnection Authority signed a contract with the Ministry of Electricity of Iraq to interconnect GCC grids with the electricity network of Southern Iraq. In actual terms, the contract will involve electrical interconnection lines from substations in Kuwait, connected to the Al-Faw station in the south of Iraq. The project will bring 500 megawatts of energy to Iraq from GCC countries. According to the Gulf Cooperation Council Interconnection Authority, the project will be finished within a time frame of 2 years. In addition to this, Saudi Arabia has signed a new electricity deal with Iraq. The agreement stipulates that an electrical interconnection will link Arar in northern Saudi Arabia with Yusufiya near Baghdad and has a capacity of 1,000 megawatts and a voltage of 400 kilovolts, with a length of 435 km. The Saudi Minister of Energy Prince Abdulaziz Bin Salman indicated that the deal will allow both countries to consolidate economic relations between them and to contribute to supporting the reliability of the electrical networks in the two countries. Moreover, this would support the integration of the networks into renewable energy, and achieve optimal investments in electricity generation projects.

Lebanon

A Lebanese flag with destroyed Beirut port in the background. Credit: www.siasat.com

 According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 1,147,581

  • Deaths: 10,496

  • As of 16 July 2022, a total of 5,706,300 vaccine doses have been administered.

 

As a border feud in the south takes the news, Lebanon continues to grapple with the socioeconomic collapse that has left its youth in desperation. Never more in the country’s entire history, have young adults sought of emigrating from the country. A deeply-rooted corrupt political system remains unphased by months of street protests and strikes. Even the perpetrators of the famous Beirut Blast remain unkown and therefore without condemnation thus deminishing the role of the justice system. On a similar note, the Governor of the Banque du Liban, a key figure in the country’s monetary and banking  policies, continues to evade questionning and therefore justice. This paralysis is pushing more people to give up on their homeland and attempt to find jobs abroad. As a result, various sectors are losing people by droves as there are no suitable wages to put food on the table. Lebanese teachers, for instance, are quitting their jobs in favor of traveling to the Gulf  where the pay is adequate, thus robbing the education sector of the needed instructors to empower and educate future generations.

Of course all this puts Lebanon in an emergency situation. According to Najat Rochdi, UN Resident Coordinator and Humanitarian Coordinator for Lebanon, there are 2.2 million people who require urgent support to secure access to food and other basic needs until the end of the year. This is an increase by 46% when compared to last year. She also pointed out that nearly one-third of Lebanon’s labor force is unemployed thus meaning that it has increased from 11.4 per cent in 2018-2019 to 29.6 per cent in 2022. She also cited that the monthly mimimum wage has become less than 25$, indicating a significant decline in income and purchasing power.

 

Palestine

Palestinian President Mahmoud Abbas and US President Joe Biden shake hands after a statement, in Bethlehem in the Israeli-occupied West Bank July 15, 2022 [REUTERS/Mohamad Torokman]

According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 672,039

  • Deaths: 5,664

  • As of 5 July 2022, a total of 3,734,270 vaccine doses have been administered.

 

During July, American President Joe Biden visited Palestine in a bid to restart relations with Palestinians after former President Donald cut had fully sided with Israel on so many issues. With his visit to Palestinian President Mahmoud Abbas came the declaration of $316 million for the benefit of Palestinians. A $201 million chunk will be dedicated for the sake of the UNRWA whose budget had been ransacked by the former President Trump. Moreover, the administration proposed the allocation of $100 million to improve healthcare access for Palestinians- a move that is yet to receive the required authorization from Congress. Another issue President Biden focused on is the bolstering of the digital economy and the setting up of the 4G in the West Bank and Gaza. This move is intended to generate jobs, increase productivity, and increase online operations in the health and education sectors. Another component President Biden focused is the issue of food security. For this reason, he pledged 15 M USD in additional humanitarian assistance for 210,000 vulnerable Palestinians. Electronic food vouchers, multipurpose cash assistance, and emergency livelihoods support will be delivered to the most food-insecure people. Additionally, the President proposed two new grants worth 7.21 million dollars that aim to build the necessary environment to achieve long term peace between Palestinians and Israelis.

Syria

12 years later and humanitarian needs remain plenty, credit: Doğukan Keskinkılıç/Anadolu Agency].

According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 56,027

  • Deaths: 3,150

  • As of 9 July 2022, a total of 4,256,291 vaccine doses have been administered.

According to the United Nations millions of Syrians still face acute hunger in parts of Syria where the war still rages on. Nearly 15 million depend on humanitarian assistance to survive daily shortages in food. The UN reports the Syrian economy is in freefall and humanitarian needs in Syria are growing and are at their highest level. Meanwhile, discussions at the security council are focused on whether to close the last border crossing for humanitarian aid, rather than focusing on how to increase humanitarian aid. The sad reality is that the world has all but forgotten Syria due to the events surrounding Ukraine. Still flashpoints between pro-government forces and opposition groups continue to occur to the east of Syria, killing and injuring people, destroying and damaging homes. The same is true for South of Syria were people are witnessing similar fates.

Despite the terrible situation in some parts of Syria, there are some positive advances in other areas of the country.  For instance, Latakia is attracting investment in the tourism industry. One of the key investment projects is a tourism resort funded by a Russian company linked to Russian oligarch Dmitry Pumpyansky.  Another positive development that may positively impact the Syrian economy is that the government has taken measures to revive the sugar beet industry for the 2021-22 season. It plans to incentivize farmers to harvest and relaunch a state-owned sugar factory that suspended refining operations for nearly seven years. In the private banking sector, and in contrary to all other competitors, Syria’s two largest Islamic banks have expanded their branch network across the country. This should expand Syrians’ access to banking services and improve their ability to undergo money transactions.

Cyprus

Although Cyprus is facing challenges related to energy crisis and inflation, the island has exceeded expectations. July 15, 2022. Credit: Cyprus Mail

 According to the WHO, Corona cases, deaths, and vaccinations are reported as follows from the first onset of the pandemic:

  • Confirmed cases: 556,048

  • Deaths: 1,099

  • As of 9 July 2022, a total of 1,807,689 vaccine doses have been administered.

Despite having recorded substantial numbers related to incoming tourists to the island, Cyprus’s rebound might be jeopardized by the current energy crisis and inflation. In its released Financial Stability Report, the Central Bank of Cyprus (CBC) forecast a slowdown in the economy for 2022. GDP is expected to slow down to 2.7% in 2022 while inflation is expected to reach 7 per cent. The significant rise in inflation will weaken the purchasing power of consumers, and may restrict consumption and investment. What is more, the negative global impact of the war in Ukraine, as well as the resulting sanctions imposed on Russia, continues to be a source of uncertainty and downside risks to Cyprus’ growth outlook. According to the European Commission, tourism and export-reliant services are particularly vulnerable.

Nevertheless, Cyprus’s economy remains exceeding expectations with a number of sectors outpacing performance forecasts. This prompted the EU to invest over 1 billion Euros in the country for the 2021-2027 period, as part of a partnership agreement. The point of these funds is to assist in developing a digital economy, to support a green transition, to implement socially inclusive economic development, and to maintain sustainable fisheries.

2- The Refugee Situation

Egypt                                                

  • The Ministry of Foreign Affairs and the UN held a meeting of the Joint Platform for Migrants and Refugees in Egypt. The meeting focused on enhancing education and health services for migrants and refugees as well as means of implementation.[1]

  • According to Enab Baladi, Syrian refugees are fleeing to Egypt from Turkey over restrictions of obtaining a work permit.[2]

 

Jordan

The UNHCR states that there are currently 675,433 registered refugees in Jordan up until the beginning of July.

The proportion of Syrian displaced people registered within the UNHCR for July, are distributed as follows:

  • 200,702 in Amman Governorate (29.7 %)

  • 169,836 in Mafraq Governorate (25.2%)

  • 136,104 in Irbid Governorate (20.2%)

  • 98,780 in Zarqa Governorate (14.6%)

  • 18,060 in Balqa Governorate (2.7%)

  • 13,339 in Madaba Governorate (2%)

  • 9,198 in Jarash Governorate (1.4%)

  • 8,639 in Karak Governorate (1.3%)

  • 8,394 in Maan Governorate (1.2%)

  • 6,382 in Ajlun Governorate (0.9%)

  • 3,853 in Aqaba Governorate (0.6%)

  • 1,660 in Tafilah Governorate (0.2%)

  • The United Nations Relief and Works Agency for Palestine Refugees in the Near East Jordan Field Office (UNRWA) and the Norwegian Refugee Council Jordan Country Office (NRC JCO) signed a Memorandum of Understanding (MoU) strengthening collaboration between the two agencies focused on improving rights and protections for Palestine refugees.[3]

Iraq

The UNHCR states that there are currently 262,756 registered Syrian refugees in Iraq.

The proportion of displaced Syrian people registered within the UNHCR up until the beginning of July, are distributed as follows:

  • 132,614 in Erbil (50.5%)

  • 85,628 in Dahuk (32.6%)

  • 34,213in Sulaymaniyah (13%)

  • 1,587 in Anbar (0.6%)

  • 8,714 in other areas (3.3%)[4]


  • According to the World Health Organization (WHO), cholera was detected in the Ashti Internally Displaced Peoples’ (IDP) camp.[5]

  • According to The Ministry of Migration and Displacement spokesman, Ali Abbas Jahakir, claimed that the total number of displaced families has reached 900,000, adding that about 600,000 of them have returned home.[6]

Lebanon

Since July, the number of registered Syrian refugees in Lebanon is 831,053.

Refugees in Lebanon are distributed as follows:

  • 325,596 in Bekaa (39.2%)

  • 227,860 in North Lebanon (27.4%)

  • 186,897 in Beirut (22.5%)

  • 90,700 in South Lebanon (10.9%)[7]

 

  • Reported in July, the WFP assisted the previous month, a total of 1,698,556 beneficiaries through cash-based transfer modalities amounting to USD 25 million and through distribution of family food parcels. The people assisted were 629,827 vulnerable Lebanese, 1,062,862 Syrian refugees, and 5,867 refugees of other nationalities.

  • Reported in July, the WFP supported 1,027,521 refugees in June with cash assistance to meet their food and other basic needs. 64 additional retailers were contracted in June to expand redemption points for beneficiaries receiving the food e-card, helping to reduce travel time and cost and enabling beneficiaries to maximize the value of assistance.[8]

  • According to Human Rights Watch, Lebanon is planning on the return of 15 thousand Syrians per month, a move which defies international obligations.[9]

 

Syria

  • The SRTF announced completing the installation of 2,116 tents, out of 3000 procured under the Emergency Rapid Plan (ERP) which was launched to help alleviate the suffering of thousands of internally displaced people suffering dire living conditions in Northern Aleppo.[10]

  • On 12 July the United Nations Security Council extended for 6 months, until 10 January 2023, the authorisation for the UN to use the crossing point of Bab al-Hawa from Turkey to Syria for humanitarian deliveries, with a further extension of an additional 6 months requiring a separate resolution.[11]

  • France carried out a mass repatriation of 35 orphaned French children and 16 women held in camps in northeast Syria.[12]

  • The SRTF-supported farmers were able to increase their cultivated lands under a potato-harvesting project as a result of the availability of high-quality potato tubers provided by the SRTF. The results came remarkably promising with 10,000-11,000 Tons of potato harvest.[13]

  • The European Union (EU) has contributed €5.7 million in humanitarian funding towards UNICEF’s support for the most vulnerable children and families in Syria.[14]

Cyprus

  • According to DW news (Deutsch Welle) the largest refugee camp in Cyprus named Pounara Camp is becoming overcrowded with woeful bathroom facilities, and meager food and water rations.[15]

Communication and Public Relations Department


[1] Daily News Egypt, July 6, 2022, https://dailynewsegypt.com/2022/07/06/egypt-un-hold-second-meeting-of-joint-platform-for-migrants-and-refugees-in-egypt/

[2] English Baladi, 05/07/2022, https://english.enabbaladi.net/archives/2022/07/escaping-restrictions-in-turkey-syrians-flee-to-egypt/

[3] OCHA, June 28, 2022, https://reliefweb.int/report/jordan/unrwa-and-norwegian-refugee-council-sign-mou-support-palestine-refugees-jordan-enar

[4] https://data2.unhcr.org/en/situations/syria/location/5

[5] OCHA, July 7, 2022, https://reliefweb.int/report/iraq/iraq-cholera-epidemic-emergency-plan-action-epoa-dref-ndeg-mdriq015

[6] Aawsat, July 5, 2022, https://english.aawsat.com/home/article/3741346/600000-displaced-families-return-home-iraq

[7] https://data2.unhcr.org/en/situations/syria/location/71

[8] OCHA, July 18, 2022, https://reliefweb.int/report/lebanon/wfp-lebanon-country-brief-june-2022

[9] OCHA, July 6, 2022, https://reliefweb.int/report/lebanon/forced-return-syrians-lebanon-unsafe-and-unlawful

[10] OCHA, July 17, 2022, https://reliefweb.int/report/syrian-arab-republic/srtf-installs-over-2000-tents-and-distributes-4974-food-rations-idps-under-its-erp-northern-aleppo

[11] OCHA, July 13, 2022, https://reliefweb.int/report/syrian-arab-republic/syria-statement-high-representative-borrell-and-commissioner-lenarcic-renewal-cross-border-humanitarian-deliveries

[12]Le Monde, July 17, 2022, https://www.lemonde.fr/en/international/article/2022/07/06/france-repatriates-16-women-and-35-children-from-syria-in-change-of-policy_5989166_4.html

[13] OCHA, July 7, 2022, https://reliefweb.int/report/syrian-arab-republic/srtf-supported-farmers-reap-abundant-potato-harvest-aleppo-season

[14]OCHA, July 4, 2022,  https://reliefweb.int/report/syrian-arab-republic/european-union-contributes-eu57-million-support-most-vulnerable-children-and-families-syria

[15] DW News, https://www.dw.com/en/how-bangladeshi-migrants-end-up-in-cyprus/a-62292496

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