{"id":678958,"date":"2025-12-28T00:00:00","date_gmt":"2025-12-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=678958"},"modified":"2025-12-28T04:10:14","modified_gmt":"2025-12-28T04:10:14","slug":"israel-sets-cairos-teeth-on-edge-as-it-becomes-the-first-country-to-recognize-somalilands-independence","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/12\/28\/israel-sets-cairos-teeth-on-edge-as-it-becomes-the-first-country-to-recognize-somalilands-independence\/","title":{"rendered":"Israel sets Cairo\u2019s teeth on edge as it becomes the first country to recognize Somaliland\u2019s independence"},"content":{"rendered":"

Happy last week of 2025, friends. <\/strong>We made it through another 12 months together, and our reward is both (a) a much brighter outlook on the year ahead and (b) news of a bonkers move by Israel, which has just bid to upend the Red Sea apple cart as it became the first country to recognize Somaliland as an independent nation. <\/p>\n

Plus \u00e7a change, plus c\u2019est la m\u00eame chose. <\/strong><\/p>\n

UP FIRST- <\/strong>Israel became the first UN member state to formally<\/strong><\/a><\/strong>recognize<\/a><\/strong>Somaliland's<\/a><\/strong>independence<\/a><\/strong> on Friday<\/strong>, a move that could alter the security architecture of the Red Sea and give Addis Ababa the legal cover it needs to proceed with its contested 50-year port lease at Berbera. Israeli leader Benjamin Netanyahu framed the recognition as an expansion of the Abraham Accords, with Somaliland\u2019s leader, Abdirahman Mohamed Abdullahi, saying his enclave would join the framework.<\/p>\n

For Egypt, this is the crossing of a major red line:<\/strong> By granting Somaliland legitimacy, Israel has effectively validated Ethiopia\u2019s controversial 50-year port-lease agreement, which previously lacked a legal sovereign partner. This could give Ethiopia the maritime gateway it has long sought and provide Israel with a formal intelligence and military foothold at the southern mouth of the Red Sea \u2014 providing yet another field on which Israel can clash with Iran and the Houthis.<\/p>\n

Egypt\u2019s Foreign Ministry condemned the move <\/strong>in the \u201cstrongest terms\u201d<\/a><\/strong> yesterday. Some 21 nations including Saudi Arabia, Turkey, and Jordan joined us in condemning Israel\u2019s move. A joint statement warns of a \u201cdangerous precedent\u201d<\/a> that threatens the security of the Red Sea and the Horn of Africa. <\/p>\n

The group explicitly rejected any link between the recognition and broader regional <\/strong>schemes including the forced displacement of Palestinians<\/strong> \u2014 a signal that the Sisi administration views the move not just as a maritime threat, but as part of a larger geopolitical reshuffle. The Arab League and the African Union have also condemned Israel\u2019s actions.<\/p>\n

The diplomatic fallout moves to New York tomorrow. <\/strong>That\u2019s when the UN Security Council will convene for an emergency session at Somalia\u2019s request. <\/p>\n

Will Donald Trump be the spoiler? <\/strong>While Prime Minister Benjamin Netanyahu framed the move as being in the \u201cspirit of the Abraham Accords,\u201d US President Donald Trump appeared to pour cold water on the idea. In an interview yesterday, Trump dismissed the prospect of immediate US recognition<\/a> and downplayed Somaliland\u2019s strategic offers, calling its bid to host a US military port \u201cno big deal.\u201d<\/p>\n

BACKGROUND- <\/strong>Landlocked Ethiopia signed a memorandum of understanding with Somaliland in early 2024 seeking 20 km of coastline for a naval base and commercial port in exchange for future recognition.<\/p>\n

The strategic context: <\/strong>Israel's recognition places it at the center of a scramble for the Red Sea, with the UAE, Turkey, and Ethiopia all vying for control of strategic ports like Berbera.<\/p>\n

Happening today<\/p>\n

Cairo\u2019s favorite parlor game is once again being played <\/strong>as wags in the capital city speculate about whether Prime Minister Mostafa Madbouly will be asked to form a new government when the next House of Representatives is seated. <\/p>\n

Why all this chatter about a new cabinet or PM? <\/strong>Cabinet\u2019s term will effectively come to an end when the current House of Representatives is dissolved next month at the end of its five-year term. <\/p>\n

Voters are heading to the polls today <\/strong>in the second day of runoffs for 19 seats where earlier results were tossed due to irregularities in voting. The final election results should be certified by Sunday, 4 January.<\/p>\n

And then what? <\/strong>Cabinet typically offers its resignation when a new House is elected and the president then asks a prime minister to form a government and select ministers. The newly-formed cabinet has to present its program to the House of Representatives for approval within 30 days of the government being formed. <\/p>\n

\n

Briefly noted<\/p>\n

<\/a> #1- The Pharaohs downed South Africa 1-0 this weekend<\/strong> to become the first side to make the final 16 at the African Cup of Nations. The final 16 get underway on Saturday, 3 January; the final is scheduled for Sunday, 18 January. <\/p>\n

<\/a> #2- Activist Alaa Abdel Fattah arrived in Britain on Friday<\/strong> after authorities lifted his travel ban. \u201cI\u2019m delighted that Alaa Abd el-Fattah is back in the UK and has been reunited with his loved ones, who must be feeling profound relief,\u201d UK Prime Minister Keir Starmer wrote on X<\/a>. Alaa was pardoned this past September, adding, \u201cAlaa's case has been a top priority for my government since we came to office. I\u2019m grateful to President Sisi for his decision to grant the pardon.<\/p>\n

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<\/a> <\/p>\n

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\n

Setting the record straight<\/p>\n

Our friends at SODIC have issued a firm denial following local media reports that its top <\/strong>leadership was <\/strong>referred to trial in a dispute over property delivery.<\/strong> The company characterizes the claims as a rehash of a six-year-old case that was previously dismissed by the public prosecutor\u2019s office, according to the statement (pdf)<\/a> from the real estate company.<\/p>\n

\n
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Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

** DID YOU KNOW that we cover <\/strong>Saudi Arabia<\/a><\/strong>, the <\/strong>UAE<\/a><\/strong> and the <\/strong>MENA-India<\/a><\/strong>Corridor<\/a><\/strong>?<\/strong><\/p>\n

** Were you forwarded this email?<\/strong> Tap or click here<\/a> to get your own copy delivered every weekday before 7am Cairo time \u2014 without charge.<\/p>\n

\n

Data point<\/p>\n

<\/a> 61% \u2014 the growth in the number of credit cards in Egypt over just four years<\/strong>, with the total count standing at 6.7 mn as of June, according to the CBE\u2019s latest data (pdf)<\/a>. Over the same period, the number of ATMs rose 52% to 26k, while point-of-sale machines increased 49% to 258k.<\/p>\n

Credit card issuances target the top 10% of income earners<\/strong>, with the real payment revolution taking place on mobile wallets as well as parallel rail systems including EGX-listed Fawry and state-owned Instapay.<\/p>\n

\n

PSA- <\/p>\n

WEATHER- It\u2019s going to be a cool day in the capital city today<\/strong>, with a high of 19\u00b0C and an overnight low of 10\u00b0C \u2014 pretty much the pattern you can expect through next weekend, plus or minus a degree.<\/p>\n

The big story abroad <\/p>\n

Geopolitics dominated the weekend as businesses around the world downed tools for <\/strong>Christmas. <\/strong><\/p>\n

The big story in our part of the world has to be Israel\u2019s surprise recognition of <\/strong>Somaliland<\/strong> (which we note above in What We\u2019re Tracking Today). Meanwhile, the Financial Times<\/a> is out with a piece noting that Saudi Arabia launched airstrikes against the UAE-backed Southern Transitional Council<\/strong> in Yemen\u2019s Hadhramaut province, bringing \u201cthe quiet but consequential Riyadh-Abu Dhabi rivalry\u201d into the open in Yemen and Sudan.<\/p>\n

MEANWHILE- Ukraine\u2019s Volodymyr Zelenskyy will meet Donald Trump in Florida today<\/strong> to close gaps on a 20-point draft deal he says is \u201c90% ready.\u201d The sticking points remain Donetsk territory and security assurances for Ukraine, the Wall Street Journal<\/a> writes. Russia pummeled the Ukrainian capital for nearly 10 hours ahead of the meeting, the New York Times<\/a> reports. <\/p>\n

AND- Traders in Western markets will start work tomorrow hoping the Santa rally extends<\/strong> through the second trading day of January.<\/p>\n","protected":false},"excerpt":{"rendered":"

Plus: Credit card issuances up 61% in the past four years, CBE data 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sets Cairo\u2019s teeth on edge as it becomes the first country to recognize Somaliland\u2019s independence","related_issue":[678956],"teaser":"Plus: Credit card issuances up 61% in the past four years, CBE data shows","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"\nIsrael sets Cairo\u2019s teeth on edge as it becomes the first country to recognize Somaliland\u2019s independence - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/12\/28\/israel-sets-cairos-teeth-on-edge-as-it-becomes-the-first-country-to-recognize-somalilands-independence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Israel sets Cairo\u2019s teeth on edge as it becomes the first 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Pence was supposed to arrive to Israel today, but is instead staying in Washington \u201cdue to Congressional votes on tax reform,\u201d according to reports. Pence was also scheduled to visit Egypt, but his schedule now\u2026","rel":"","context":"In "What We\u2019re Tracking This Week"","block_context":{"text":"What We\u2019re Tracking This Week","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-this-week\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":548896,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/25\/tensions-between-egypt-and-israel-are-back-in-the-israeli-press\/","url_meta":{"origin":678958,"position":3},"title":"Tensions between Egypt and israel are back in the Israeli press","author":"enterpriseam admin","date":"25 August 2022","format":false,"excerpt":"It\u2019s still all about Egyptian-Israeli relations in the foreign press: Tension in our relations with our neighbors to the east \u2014 and the ceasefire Egypt brokered earlier this month between Palestinian militants and Israel \u2014 is still everywhere in the Israeli press. 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