The Engagement of Arab Gulf States in Egypt and Tunisia since 2011: Rationale and Impact

Abstract

This study documents the various forms and measures of political and economic assistance provided by Saudi Arabia, the United Arab Emirates (UAE), and Qatar to Egypt and Tunisia since the upheavals of 2011. It also analyzes the impact Gulf donor countries had on political and economic development within Egypt and Tunisia, particularly with regard to democratization and inclusive socio-economic change. Economically, efforts undertaken by the Gulf states were intended to stabilize the two countries, for example by helping them overcome budget deficits. While their business investments are not trickling down to the economically marginalized segments of society, some of the Gulf-funded development projects have been geared toward fueling more inclusive growth. Due to limited coordination between Arab and Western donor countries, however, there has thus far been little alignment of projects taking place in the same sectors. As a result, the potential for synergies between these projects has remained untapped. In political terms, as was expected, the Gulf states did not engage in efforts to promote more democratization. Indeed, in Egypt the assistance provided by Saudi Arabia and the UAE even contributed to a return to the pre-2011 order. For Germany and its partners to engage the Gulf states more intensively on governance matters and to create incentives, deeper knowledge is required about how political decisions are made in the Gulf. This is also essential for developing Germany’s much-needed general strategy toward the Gulf states, which is currently lacking. The Deauville Partnership is a useful forum for improving and increasing future coordination.