Sisi holds Key to Trump’s Sinai Plan for Palestinians

Reports suggest Trump is about to unveil massive relief programme, but on condition Palestinians work in Egypt under an Israeli ‘Greater Gaza’ plan

Israel and the US are in a race against time with Gaza. The conundrum is stark: how to continue isolating the tiny coastal enclave from the outside world and from the West Bank – to sabotage any danger of a Palestinian state emerging – without stoking a mass revolt from Gaza’s two million Palestinians?

In Gaza, Israel does not have the luxury of time it enjoys in the West Bank and East Jerusalem, the two additional Palestinian territories it occupies. In those areas, it can keep chipping away at the Palestinian presence, using the Israeli army, Jewish settlers and tight restrictions on Palestinian movement to take over key resources like land and water.

Gaza: A death camp

While Israel is engaged in a war of attrition with the West Bank’s population, a similar, gradualist approach in Gaza is rapidly becoming untenable. The United Nations has warned that the enclave may be only two years away from becoming “uninhabitable”, its economy in ruins and its water supplies unpotable.

More than a decade of a severe Israeli blockade as well as a series of military assaults have plunged much of Gaza into the dark ages. Israel desperately needs a solution, before Gaza’s prison turns into a death camp. And now, under cover of Donald Trump’s “ultimate peace plan”, Israel appears to be on the brink of an answer.

Recent weeks have been rife with reports in the Israeli and Arab media of moves by Washington and Israel to pressure Egypt into turning over a swath of territory in northern Sinai, next to Gaza, for infrastructure projects designed to alleviate the enclave’s “humanitarian crisis”.

Late last month Hamas, which rules Gaza, sent a delegation to Cairo to discuss the measures. This followed hot on the heels of a visit to Egypt by Jared Kushner, Donald Trump’s son-in-law who is overseeing the Middle East peace plan.

Exploiting Egyptian fears

According to reports, Trump hopes soon to unveil a package – associated with his “deal of the century” peace-making – that will commit to the construction of a solar-power grid, desalination plant, seaport and airport in Sinai, as well as a free trade zone with five industrial areas. Most of the financing will come from the oil-rich Gulf states.

Egyptian diplomatic sources appear to have confirmed the reports. The programme has the potential to help relieve the immense suffering in Gaza, where electricity, clean water and freedom of movement are in short supply. Palestinians and Egyptians would jointly work on these projects, providing desperately needed jobs. In Gaza, youth unemployment stands at over 60 per cent.

It has been left unclear whether Palestinians from Gaza would be encouraged to live close to the Sinai projects in migrant workers’ towns. Israel will doubtless hope that Palestinian workers would gradually make Sinai their permanent home.

Egypt, meanwhile, will benefit both from the huge injection of capital in an economy currently in crisis, as well as from new infrastructure that can be used for its own population in the restive Sinai peninsula.

It is worth noting that for two years an Israeli cabinet minister has been proposing similar infrastructure projects for Gaza located on an artificial island to be established in Palestinian territorial waters. Israeli Prime Minister Benjamin Netanyahu has repeatedly balked at the proposal.

Locating the scheme instead in Egypt, under Cairo’s control, will tie Egyptian security concerns about Gaza to Israel’s, and serve to kill the Palestinian national cause of statehood.

A decade of arm-twisting

It is important to understand that the Sinai plan is not simply evidence of wishful thinking by an inexperienced or deluded Trump administration. All the signs are that it has enjoyed vigorous support from the Washington policy establishment for more than a decade.

In fact, four years ago, when Barack Obama was firmly ensconced in the White House, Middle East Eye charted the course of attempts by Israel and the US to arm-twist a succession of Egyptian leaders into opening Sinai to Gaza’s Palestinians.

This has been a key Israeli ambition since it pulled several thousand settlers out of Gaza in the so-called disengagement of 2005 and claimed afterwards – falsely – that the enclave’s occupation was over.

Washington has reportedly been on board since 2007, when the Islamist faction Hamas took control of Gaza, ousting the Fatah movement of Palestinian President Mahmoud Abbas. It was then that Israel, backed by the US, intensified a blockade that has destroyed Gaza’s economy and prevented key goods from entering.

A Palestinian statelet

The advantages of the Sinai plan are self-evident to Israel and the US. It would:

  • make permanent the territorial division between Gaza and the West Bank, and the ideological split between the rival factions of Fatah and Hamas;
  • downgrade Gaza from a diplomatic issue to a humanitarian one;
  • gradually lead to the establishment of a de facto Palestinian statelet in Sinai and Gaza, mostly outside the borders of historic Palestine;
  • encourage the eventual settlement of potentially millions of Palestinian refugees in Egyptian territory, stripping them of their right in international law to return to their homes, now in Israel;
  • weaken the claims of Abbas and his Palestinian Authority, located in the West Bank, to represent the Palestinian cause and undermine their moves to win recognition of statehood at the United Nations;
  • and lift opprobrium from Israel by shifting responsibility for repressing Gaza’s Palestinians to Egypt and the wider Arab world.

‘Greater Gaza’ plan

In summer 2014, Israel’s media reported that, with Washington’s blessing, Israeli officials had been working on a plan dubbed “Greater Gaza” that would attach the enclave to a large slice of northern Sinai. The reports suggested that Israel had made headway with Cairo on the idea.

Egyptian and Palestinians officials publicly responded to the leaks by denouncing the plan as “fabricated”. But, whether Cairo was privately receptive or not, it provided yet further confirmation of a decade-long Israeli strategy in Gaza.

At around the same time, an Arab newspaper interviewed a former anonymous official close to Hosni Mubarak, the Egyptian president ousted in 2011. He said Egypt had come under concerted pressure from 2007 onwards to annex Gaza to northern Sinai, after Hamas took control of the enclave following Palestinian elections.

Five years later, according to the same source, Mohamed Morsi, who led a short-lived Muslim Brotherhood government, sent a delegation to Washington where the Americans proposed that “Egypt cede a third of the Sinai to Gaza in a two-stage process spanning four to five years”.

And since 2014, it appears, Morsi’s successor, General Abdel-Fattah al-Sisi, has faced similar lobbying.

Carrots and sticks

Suspicions that Sisi might have been close to capitulating four years ago were fuelled at that time by Abbas himself. In an interview on Egyptian TV, he said Israel’s Sinai plan had been “unfortunately accepted by some here [in Egypt]. Don’t ask me more about that. We abolished it.”

Israel’s neoconservative cheerleaders in Washington who reportedly leant on Mubarak in 2007, during George W Bush’s presidency, are now influencing Middle East policy again in the Trump administration.

And although Sisi appears to have stood his ground in 2014, subsequent dramatic changes in the region are likely to have weakened his hand.

Both Abbas and Hamas are more isolated than ever, and the situation in Gaza more desperate. Israel has cultivated much closer ties to the Gulf states as they fashion joint opposition to Iran. And the Trump administration has dropped even the pretence of neutrality in resolving the Israeli-Palestinian conflict.

In fact, Trump’s Middle East team led by Kushner adopted from the outset Israel’s so-called “outside-in” paradigm for arriving at a peace agreement.

The idea is to use a carrot-and-stick approach – a mix of financial inducements and punitive sanctions – to bully Abbas and Hamas into making yet more major concessions to Israel that would void any meaningful moves towards Palestinian statehood. Key to this idea is that Saudi Arabia and the United Arab Emirates can be recruited to help Israel in its efforts to force the Palestinian leadership’s hand.

Egypt, current reports indicate, has come under similar pressure from the Gulf to concede territory in Sinai to help Trump with his long-delayed “deal of the century”.

Muslim Brotherhood threat

Sisi and his generals have good reason to be reluctant to help. After they grabbed power from Morsi’s Muslim Brotherhood government, they have done everything possible to crush homegrown Islamist movements, but have faced a backlash in Sinai.

Hamas, which rules Gaza, is the sister organisation of the Muslim Brotherhood. Egypt’s generals have worried that opening the Rafah border crossing between Sinai and Gaza could bolster Islamist attacks that Egypt has struggled to contain. There are fears too in Cairo that the Sinai option would shift the burden of Gaza onto Egypt’s shoulders.

This is where Trump and Kushner may hope their skills at wheeler-dealing can achieve a breakthrough.

Egypt’s susceptibility to financial inducements from the Gulf were on display last year when Sisi’s government agreed effectively to sell off to Saudi Arabia two strategic Red Sea islands, Tiran and Sanafir. They guard the entrance to the Gulf of Aqaba and the Suez canal.

In return, Egypt received billions of dollars in loans and investments from the kingdom, including large-scale infrastructure projects in Sinai. Israel reportedly approved the deal.

Analysts have suggested that the handover of the islands to Saudi Arabia was intended to strengthen security and intelligence cooperation between Israel, Egypt and Saudi Arabia in dealing with Islamic militants in Sinai.

This now looks suspiciously like the prelude to Trump’s reported Sinai plan.

Over the Palestinians’ heads

In March, the White House hosted 19 countries in a conference to consider new ideas for dealing with Gaza’s mounting crisis. As well as Israel, participants included representatives from Egypt, Jordan, Saudi Arabia, Qatar, Bahrain, Oman and the United Arab Emirates. The Palestinians boycotted the meeting.

Much favoured by the Trump team was a paper delivered by Yoav Mordechai, an Israeli general and key official overseeing Israel’s strategy in the occupied territories. Many of his proposals – for a free trade zone and infrastructure projects in Sinai – are now being advanced.

Last month Kushner visited Saudi Arabia, Qatar, Egypt, and Jordan to drum up support. According to interviews in the Israel Hayom daily, all four Arab states are on board with the peace plan, even if it means bypassing Abbas.

Jackie Khoury, a Palestinian analyst for the Israeli Haaretz newspaper, summed up the plan’s Gaza elements: “Egypt, which has a vital interest in calming Gaza down because of the territory’s impact on Sinai, will play the policeman who restrains Hamas. Saudi Arabia, Qatar and perhaps the United Arab Emirates will pay for the projects, which will be under United Nations auspices.”

Israel’s efforts to secure compliance from Hamas may be indicated by recent threats to invade Gaza and dissect it in two, reported through veteran Israeli journalist Ron Ben-Yishai. The US has also moved to deepen the crisis in Gaza by withholding payments to UNRWA, the United Nations agency for Palestinian refugees. A majority of Gaza’s population are refugees dependent on UN handouts.

An advantage for Hamas in agreeing to the Sinai plan is that it would finally be freed of Israeli and Palestinian Authority controls over Gaza. It would be in a better able to sustain its rule, as long as it did not provoke Egyptian ire.

Oslo’s pacification model

Israel and Washington’s plans for Gaza have strong echoes of the “economic pacification” model that was the framework for the Oslo peace process of the late 1990s.

For Israel, Oslo represented a cynical chance to destroy the largely rural economy of the West Bank that Palestinians have depended on for centuries. Israel has long coveted the territory both for its economic potential and its Biblical associations.

Hundreds of Palestinian communities in the West Bank rely on these lands for agriculture, rooting them to historic locations through economic need and tradition. But uprooting the villagers – forcing them into a handful of Palestinian cities, and clearing the land for Jewish settlers – required an alternative economic model.

As part of the the Oslo process, Israel began establishing a series of industrial areas – paid for by international donors – on the so-called “seam zone” between Israel and the West Bank.

Israeli and international companies were to open factories there, employing cheap Palestinian labour with minimal safeguards. Palestinians would be transformed from farmers with a strong attachment to their lands into a casual labour force concentrated in the cities.

An additional advantage for Israel was that it would make the Palestinians the ultimate “precariat”. Should they start demanding a state or even protest for rights, Israel could simply block entry to the industrial areas, allowing hunger to pacify the population.

New prison wardens

There is every reason to believe that is now the goal of an Israeli-Trump initiative to gradually relocate Palestinians to Sinai through investment in infrastructure projects.

With the two countries’ security interests safely aligned, Israel can then rely on Egypt to pacify the Palestinians of Gaza on its behalf. Under such a scheme, Cairo will have many ways to teach its new workforce of migrant labourers a lesson.

It can temporarily shut down the infrastructure projects, laying off the workforce, until there is quiet. It can close off the sole Rafah border crossing between Gaza and Sinai. It can shutter the electricity and desalination plants, depriving Gaza of power and clean water.

This way Gaza can be kept under Israel’s thumb without Israel sharing any blame. Egypt will become Gaza’s visible prison wardens, just as Abbas and his Palestinian Authority have shouldered the burden of serving as jailers in much of the West Bank.

This is Israel’s model for Gaza. We may soon find out whether it is shared by Egypt and the Gulf states.

• First published in Middle East Eye

Jonathan Cook, based in Nazareth, Israel is a winner of the Martha Gellhorn Special Prize for Journalism. His latest books are Israel and the Clash of Civilisations: Iraq, Iran and the Plan to Remake the Middle East (Pluto Press) and Disappearing Palestine: Israel's Experiments in Human Despair (Zed Books). Read other articles by Jonathan, or visit Jonathan's website.