Egypt recently reaffirmed its diplomatic and economic ties with Qatar, ending a four-year estrangement that started in 2017. This decision aligns Egypt with an Arab quartet, consisting of Saudi Arabia, United Arab Emirates (UAE), and Bahrain, which had previously striven to isolate Qatar due to accusations of supporting terrorism and alleged close ties with Iran. The schism between these countries included a comprehensive blockade covering land, air, and sea routes.
The Catalyst for Reconciliation
The rekindling of these relations was largely driven by the signing of a ‘solidarity and stability’ agreement at the 41st Gulf Cooperation Council (GCC) summit. The GCC, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE, lifted all sanctions on Qatar and reopened their borders. Egypt, standing in solidarity with the Arab quartet—which includes three GCC members—also resumed its ties with Qatar.
Joint Front Against Iran
Beyond this show of unity, Egypt’s reconciliation with Qatar represents a strategic move to strengthen the Gulf region against the perceived threats posed by Iran’s nuclear and ballistic missile program. Both the US and GCC members have traditionally opposed this program due to the risks it poses to regional stability.
Qatar’s Growing Influence
Qatar is among the world’s leading natural gas producers and boasts one of the highest per-capita incomes globally. Its recent economic growth and the upcoming 2022 Football World Cup have elevated its global standing. There is also a historical context; under the government of Mohamed Morsi (2012-13), Qatar was the most significant investor in Egypt.
American Influence and Support
The United States, as the largest foreign direct investor in, and the main export destination for Qatar, has played a vital role in the mediation process. The USA’s robust economic ties with Qatar and the mutual interests they share were critical in facilitating the ‘solidarity and stability’ deal.
Unraveling the Root of Discord
Post Arab Spring and after the fall of Mohamed Morsi—a preferred ally of Qatar—Qatar supported Egypt’s Muslim Brotherhood to maintain its influence within the country and garner domestic support from other Islamist groups. However, current president Abdel Fattah el-Sisi, supported by the Arab quartet, suppressed the Muslim Brotherhood.
Qatar’s independent foreign policy and its cordial relations with countries such as the USA, Europe, Israel, Iran, and Palestine, especially Hamas and other Islamist parties, have also caused friction with GCC members and Egypt. Additionally, Qatar’s good relationship with Iran, largely due to shared gas field interests, has added to the discord.
Significance for India
India stands to benefit significantly from the reconciliation between Egypt and the Arab quartet. Enjoying good relations with all the GCC states, including Egypt and Qatar, India could see an expansion of opportunities due to this diplomatic rapprochement.
The Gulf region is one of the most significant markets for Indian goods and supplies a substantial percentage of the hydrocarbons India needs. Peaceful relations among these nations, rich in gas and oil reserves, are likely to help address India’s energy requirements more effectively.
Furthermore, the Gulf countries are home to millions of Indian migrant workers whose remittances are crucial to India’s economy. Improved mutual relationships between the Gulf countries and Egypt could lead to increased employment and investment opportunities for India in various sectors – ranging from food processing, healthcare, education, culture, defence, and security.
