Egypt has been moving closer to Iraq, but does that mean facing up to Iran's regional ambitions, asks Salah Hemeid Egypt has sent an ambassador to Iraq for the first time since its last envoy was killed by Al-Qaeda militants in 2005. The move underscores Egypt's intentions to improve relations with the Shia and Kurdish-led government, which many Egyptians have dismissed as sectarian and not representative of all Iraqis. Upon his arrival, Sherif Kamal Shahin, a diplomat with 27 years' experience and a former ambassador to Zambia, said that Egypt supported the political process in Iraq and efforts to "maintain stability, security and territorial integrity". He even predicted "a quantitative leap" in bilateral relations in the near future. Cairo has had no official diplomatic representative in Iraq since the July 2005 abduction and murder of its diplomat Ihab El-Sherif in Baghdad one month into his posting, amid a wave of killings blamed on former Al-Qaeda in Iraq leader Abu Mussab Al-Zarqawi, who claimed responsibility for the murder. By sending El-Sherif, Egypt became the first Arab nation to send an ambassador to post-Saddam Iraq, and that could have infuriated armed groups resisting the US-backed Iraqi government. Shahin's arrival in Baghdad comes just days after a visit to Egypt by Iraqi Foreign Minister Hoshyar Zebari, who led a 40-strong delegation to bolster trade, investment and cooperation in the security field. In Cairo, Zebari praised Egypt for "showing regional leadership by taking the decision to appoint Shahin," who is a veteran diplomat with experience that includes postings in Tokyo, Athens and Beirut. Relations between the two countries have been warming since the October 2008 visit to Iraq by Egyptian Foreign Minister Ahmed Abul-Gheit, the first visit by an Egyptian foreign minister to Iraq in 18 years. The two countries severed diplomatic ties after Saddam Hussein's 1990 invasion of Kuwait, which Egypt opposed. Before that took place, Egypt was an ally of Iraq in its 1980-1988 war with Iran, and the two countries joined the Arab Cooperation Council, along with Jordan and Yemen, which is a bloc aimed at bolstering political and economic cooperation. Egypt also ranked as Iraq's third-largest trading partner with annual exports worth nearly $2 billion, while remittances in dollars from Egyptians working in Iraq were worth further billions of dollars per year, according to figures from the Central Bank of Iraq at the time. In the 1970s, tens of thousands of Egyptians moved to Iraq, where the government allowed them to stay unconditionally without the need for a visa for any length of time. During the Iraq-Iran war, Saddam Hussein ordered the Iraqi authorities to further facilitate the arrival of Egyptian labour. By the end of 1981, the number of Egyptians working in Iraq had reached more than three million, most of them in ministries and government institutions, but many also working in private-sector factories, farms and service projects. By 1987, there were still as many as three million Egyptians in Iraq. Saddam's government passed laws to ease regulations on Egyptians working in Iraq, including giving them the right to set up their own companies. They were exempt from taxes and had unlimited foreign fund transfers. They could register their children for free in Iraqi public schools and universities and had free access to hospitals and health centres. They also had the right to Iraqi nationality. With the 1991 Gulf War, in which Egypt participated in the US-led coalition that drove Iraq from Kuwait, all this evaporated. However, the two countries resumed diplomatic relations at the level of chargé d'affaires in 1994. They also resumed trade cooperation, and Egypt again ranked first among Arab countries having trade relations with Iraq, with a volume of trade that reached some $1 billion. After the 2003 US-led invasion of Iraq that toppled Saddam, Egyptian exports to Iraq came to a standstill, as Cairo was reluctant to do business with Iraq's new Shia and Kurdish rulers. However, following Abul-Gheit's visit economic ties began to improve rapidly and Egyptian goods began pouring into the Iraqi market. Cairo has sold Baghdad some $350 million worth of merchandise this year, and the two countries have said that they intend to set up a joint free-trade zone that should double Egyptian exports. Egyptian Minister of petroleum Sameh Fahmi, who accompanied Abul- Gheit, reported later that Egypt would be the first Arab nation to have a presence in Iraq through cooperation in the oil field. Egyptian Minister of Investment Mahmoud Mohieldin also travelled to Baghdad in September accompanied by businessmen and representatives of public-sector companies to probe investment and trade opportunities, while an Iraqi delegation led by the chairman of the Iraqi National Investment Commission, Sami Raouf Al-Araji, visited Cairo in October to offer business opportunities to Egyptian investors. At first glance, these increases in economic exchanges could indicate that business is outpacing politics in re-born Egyptian-Iraqi relations. Trade is a high-profile target, but the reasons behind restoring relations are manifold as the two countries move ahead in dismantling the barriers that have divided them for nearly 20 years. Officials from the two countries say that they intend to draft what they call "a strategic agreement", although they have not divulged details or said if this could amount to cooperation or coordination in political and security matters. For Iraqis, Egyptian moves to open up relations are highly significant as many other Arab countries still shun Shia Prime Minister Nuri Al-Maliki's government, or pay only lip service to intentions of improving relations. Regional powerhouse Saudi Arabia, for example, has remained on the sidelines, saying it has been waiting until security improves, while relations with Syria have deteriorated over Iraq's accusations that Damascus has supported insurgents trying to destabilise the Iraqi government. As for Egypt, moves to upgrade its relations with Iraq seem also to have been prompted by what Egyptian officials call their country's national security, a reference to Cairo's increasing fears about Iran's mounting influence in Iraq. Like many other Arab countries, Egypt is worried about Iran's interference in Iraq, which Tehran is using to bolster its regional influence. Also like other Arab countries, Egypt is beginning to worry that any US rapprochement with Iran could ultimately lead to a nuclear-armed, non-Arab, and Shia superpower expanding its influence further in the region. It fears that the offer of an improvement in US-Iran ties held out by US President Barack Obama could go too far by offering concessions to a powerful regional player long regarded with suspicion. Egyptian officials have not spelled out any strategy to face up to Iran's role in Iraq, but they say that Cairo is determined to bring Iraq back into the Arab fold. As a general strategy, Egypt feels that by helping to break Iraq's isolation and leading other Arab countries to do the same it can prevent the Shia-led government from becoming an Iranian vassal. Egypt can also help in Iraq's national-reconciliation efforts by facilitating communal dialogue and bridging the gap between rival sectarian and political groups.
