In exchange, according to the reports, the kingdom and Saudi firms are expected, among other things to:
- Invest over $20 billion in Egypt.
- Provide about $1.5 billion for developing northern Sinai.
- Fund the causeway connecting Sharm el-Sheikh and Saudi Arabia,
- Supply Egypt’s energy needs with a long-term loan with 2 percent interest.
Since the 1800s, these islands have changed ownership several times, leaving the current status in a bit of a grey area.
In
1950, the Saudi government handed over both islands to Egypt because at
the time Egypt had the military capability to “protect” them from
Israel.
Both
islands, at the mouth of the Gulf of Elat Aqaba have a combined area of
only 44 square miles and are 5 miles from Egypt and Saudi Arabia. Both
islands are arid and uncultivated with yet unexplored possible natural
resources.
The
big significance Tiran has is its strategic position - it forms the
narrowest section of the Straits of Tiran, which is the only passage
from the ports of Elat in Israel, and Aqaba in Jordan to the Indian
Ocean and South Asian Markets.
This
strategic significance played a disastrous role for Egypt when on May
22, 1967 president Gamal Abdel Nasser ordered the blockade of the
Straits of Tiran.
Perceiving
this as an act of war; Israel launched attacks on Egypt, Jordan, and
Syria, starting the Six Day War. This led to the loss of Arab land to
Israel and the death of some 20,000 Arab soldiers.
Egypt regained the Sinai Peninsula, including the two Islands, after the 1973 Yom Kippur war.
Tiran
is included as part of the 1979 “Camp David” peace treaty, signed in
Washington by Egypt and Israel that guarantees freedom of Israeli
shipping through the Straits of Tiran.
Both islands are uninhabited and only Tiran has a handful of
international peace keeping troops, mostly American and Egyptian
soldiers. Many beaches on Tiran are mined.
The
Saudi government now has to agree to abide by the same Camp David
Accords with regards to guaranteeing safe passage for Israeli shipping
through the Straits of Tiran.
Egypt,
it seems, made an excellent deal: It receives an outstanding economic
lifeline in exchange for territories that it probably does not
technically own.
Israel
was told in advance about the Saudi - Egyptian deal, and gave its
approval, sort of. Israel’s concerns are mainly the fact that the
current instability in the Saudi kingdom could lead to an overthrow of
the somewhat fragile regime and the establishment of a hostile
government (to both Israel and the US) of either radical Islamist
extremists like ISIS, or a pro-Iran group. Either way would create the
risk of the Straits of Tiran being again blocked to Israeli commercial
and military shipping.
Another
concern is the planned bridge or causeway. Obviously it would be highly
beneficial to the Egyptians and Saudis, but what threats will it pose
down the road, to Israeli, Jordanian and American ships sailing beneath
it?
All
told, if the various agreements stand the test of time, at least at the
moment it looks like a good deal. If nothing else, it brings together
the interests, and reinforces relations, between the four moderate,
anti-Iran and anti-Islamic terrorism powers in the Middle East: Egypt,
Saudi Arabia (assuming the new 9/11 disclosures don’t shake the boat too
much...), Jordan and Israel.
And that makes Tiran and Snafir hugely significant.