Gaza Strip vs. Egypt

Inhabited since at least the 15th century B.C., the Gaza Strip has been dominated by many different peoples and empires throughout its history; it was incorporated into the Ottoman Empire in the early 16th century. The Gaza Strip fell to British forces during World War I, becoming a part of the British Mandate of Palestine. Following the 1948 Arab-Israeli War, Egypt administered the newly formed Gaza Strip; Israel captured it in the Six-Day War in 1967. Under a series of agreements known as the Oslo accords signed between 1993 and 1999, Israel transferred to the newly-created Palestinian Authority (PA) security and civilian responsibility for many Palestinian-populated areas of the Gaza Strip as well as the West Bank. In 2000, a violent intifada or uprising began, and in 2001 negotiations to determine the permanent status of the West bank and Gaza Strip stalled. Subsequent attempts to re-start negotiations have not resulted in progress toward determining final status of the Israeli-Palestinian conflict.

Israel by late 2005 unilaterally withdrew all of its settlers and soldiers and dismantled its military facilities in the Gaza Strip, but it continues to control the Gaza Strip's land and maritime borders and airspace. In early 2006, the Islamic Resistance Movement (HAMAS) won a majority in the Palestinian Legislative Council election. Attempts to form a unity government between Fatah, the dominant Palestinian political faction in the West Bank, and HAMAS failed, leading to violent clashes between their respective supporters and HAMAS's violent seizure of all military and governmental institutions in the Gaza Strip in June 2007. Since HAMAS's takeover, Israel and Egypt have enforced tight restrictions on movement and access of goods and individuals into and out of the territory. Fatah and HAMAS have since reached a series of agreements aimed at restoring political unity between the Gaza Strip and the West Bank but have struggled to enact them; a reconciliation agreement signed in October 2017 remains unimplemented.

In July 2014, HAMAS and other Gaza-based militant groups engaged in a 51-day conflict with Israel culminating in late August with an open-ended truce. Since 2014, Palestinian militants and the Israel Defense Forces have exchanged projectiles and air strikes respectively, sometimes lasting multiple days and resulting in multiple deaths on both sides. Egypt, Qatar, and the UN Special Coordinator for the Middle East Peace Process have negotiated multiple ceasefires to avert a broader conflict. Since March 2018, HAMAS has coordinated weekly demonstrations along the Gaza security fence, many of which have turned violent, resulting in one Israeli soldier death and several Israeli soldier injuries as well as more than 200 Palestinian deaths and thousands of injuries.

The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilizations. A unified kingdom arose circa 3200 B.C., and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Completion of the Suez Canal in 1869 elevated Egypt as an important world transportation hub. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty from Britain in 1952. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have reaffirmed the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to meet the demands of Egypt's fast-growing population as it implements far-reaching economic reforms, including the reduction of select subsidies, large-scale infrastructure projects, energy cooperation, and foreign direct investment appeals.

Inspired by the 2010 Tunisian revolution, Egyptian opposition groups led demonstrations and labor strikes countrywide, culminating in President Hosni MUBARAK's ouster in 2011. Egypt's military assumed national leadership until a new legislature was in place in early 2012; later that same year, Muhammad MURSI won the presidential election. Following protests throughout the spring of 2013 against MURSI's government and the Muslim Brotherhood, the Egyptian Armed Forces intervened and removed MURSI from power in July 2013 and replaced him with interim president Adly MANSOUR. Simultaneously, the government began enacting laws to limit freedoms of assembly and expression. In January 2014, voters approved a new constitution by referendum and in May 2014 elected former defense minister Abdelfattah ELSISI president. Egypt elected a new legislature in December 2015, its first Hose of Representatives since 2012. ELSISI was reelected to a second four-year term in March 2018. In April 2019, Egypt approved via national referendum a set of constitutional amendments extending ELSISI's term in office through 2024 and possibly through 2030 if re-elected for a third term. The amendments would also allow future presidents up to two consecutive six-year terms in office, re-establish an upper legislative house, allow for one or more vice presidents, establish a 25% quota for female legislators, reaffirm the military's role as guardian of Egypt, and expand presidential authority to appoint the heads of judicial councils.

note: effective 3 January 2009, the Gaza maritime area is closed to all maritime traffic and is under blockade imposed by Israeli Navy until further notice

Movement and access restrictions, violent attacks, and the slow pace of post-conflict reconstruction continue to degrade economic conditions in the Gaza Strip, the smaller of the two areas comprising the Palestinian territories. Israeli controls became more restrictive after HAMAS seized control of the territory in June 2007. Under Hamas control, Gaza has suffered from rising unemployment, elevated poverty rates, and a sharp contraction of the private sector, which had relied primarily on export markets.

Since April 2017, the Palestinian Authority has reduced payments for electricity supplied to Gaza and cut salaries for its employees there, exacerbating poor economic conditions. Since 2014, Egypt's crackdown on the Gaza Strip's extensive tunnel-based smuggling network has exacerbated fuel, construction material, and consumer goods shortages in the territory. Donor support for reconstruction following the 51-day conflict in 2014 between Israel and HAMAS and other Gaza-based militant groups has fallen short of post-conflict needs.

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country's relatively diverse economic activity.

Despite Egypt's mixed record for attracting foreign investment over the past two decades, poor living conditions and limited job opportunities have contributed to public discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 has restricted economic growth and failed to alleviate persistent unemployment, especially among the young.

In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt's high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will be challenged to obtain foreign and local investment in manufacturing and other sectors without a sustained effort to implement a range of business reforms.

see entry for the West Bank

see entry for the West Bank

see entry for the West Bank

note: see entry for the West Bank

the status of the Gaza Strip is a final status issue to be resolved through negotiations; Israel removed settlers and military personnel from Gaza Strip in September 2005

Sudan claims but Egypt de facto administers security and economic development of Halaib region north of the 22nd parallel boundary; Egypt no longer shows its administration of the Bir Tawil trapezoid in Sudan on its maps; Gazan breaches in the security wall with Egypt in January 2008 highlight difficulties in monitoring the Sinai border; Saudi Arabia claims Egyptian-administered islands of Tiran and Sanafir