UAE Conspiracies: Extensive Investments in Egypt’s Sinai for Israel’s Benefit

On September 3rd, an aircraft landed at al-Arish Airport in North Sinai, Egypt, carrying an Emirati investment delegation from “Masdar,” a company specializing in renewable energy investments.

The delegation, welcomed by the new governor of North Sinai, Khaled Magawar, and Essam al-Arjani, son of businessman close to the regime Ibrahim al-Arjani, visited several sites in the cities of Rafah and Sheikh Zuweid near the border with the Gaza Strip, with the aim of establishing a wind power generation station.

According to (daraj.media), the context of the visit, the individuals who welcomed the delegation, the nature of the potential investment through a UAE government-linked company known for its substantial investments in Israel, and the timing of the visit—amid Israel’s ongoing occupation of the Rafah crossing and its insistence on remaining in the Salah al-Din/Philadelphi Corridor—raises significant questions about the hidden motives behind this visit.

What do we know about “Masdar”?

In 2006, the UAE government established “Masdar” with the aim of enhancing its leadership in the global energy sector. In 2021, three prominent Emirati energy companies—ADNOC, Mubadala, and Taqa—acquired stakes in Masdar, which is now developing projects in over 40 countries across six continents. According to its official website, it invests in global projects with a total value exceeding $30 billion.

The company is led by Sultan bin Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology, with Mohammed Jameel Al Ramahi serving as the CEO. Ali Al Shamri, who headed the Emirati delegation in Sinai, is responsible for special projects and energy generation and distribution operations within the company.

“Masdar” became the first investment tool for the UAE to normalize relations with Israel following the “Abraham Accords.” Just five months after the signing of the agreement, Masdar and “EDF Renewables” announced a strategic agreement to explore renewable energy opportunities and support clean energy goals in Israel.

According to the agreement, the two companies plan to work together on current renewable energy projects as well as those in development, while also exploring joint involvement in new initiatives announced by the Israeli government. The Israeli Energy Minister at the time referred to this as the “first fruits of the Abraham Accords.”

By the end of 2021, “Masdar” expanded its investment portfolio through ownership by three companies—ADNOC, Mubadala, and Taqa—linked to Abu Dhabi’s sovereign wealth fund. The company then played a pivotal role in the energy and water exchange agreement between Jordan and Israel.

The project, dubbed the “Prosperity Project,” aims to export 600 megawatts of solar energy to Israel and send 200 million cubic meters of desalinated water to Jordan. In September 2023, the Israeli Energy Minister met with the CEO of “Masdar” to advance the water-for-energy deal with Jordan.

At the same time, Mubadala, one of the stakeholders in “Masdar,” has contributed to enhancing trade relations between the UAE and Israel by investing hundreds of millions of dollars in Israeli technology firms and in various Israeli investment funds.

Its most significant investment was the acquisition of approximately 22% of the Tamar offshore natural gas field for over a billion dollars, before later reducing its stake to 11%.

It’s important to note that the Tamar field supplies Egypt with its critical natural gas requirements, and Cairo’s reliance on this source has grown due to domestic shortages, effectively providing Israel with leverage over Egypt.

Lastly, “Masdar” has ties to the American Jewish lobby. A federal disclosure document submitted to the U.S. Department of Justice on April 8, 2023, reveals that the public relations firm “First International Resources,” headed by political strategist Zev Forest, was engaged by the renewable energy company “Masdar” in Abu Dhabi.

Forest is the former director of the Anti-Defamation League in Israel and currently holds the position of chairman of Cadogan Petroleum’s board and chair of the International Council at the Peres Center for Peace in Jaffa.

The contract between “Masdar” and “First International Resources” outlines objectives to enhance the “reputation and public standing” of the UAE and Sultan Al Jaber, the company’s chairman, “among Western audiences.” It aims to leverage this “improved reputation” to “shield” Al Jaber from any potential criticism during the COP 28 climate conference.

Over the past few years, “Masdar” has expanded its investments in Egypt, having signed multiple agreements for renewable energy electricity production in areas like Ras Gharib in the Gulf of Suez, the Suez Canal Economic Zone, and the Benban solar power complex in Aswan.

This is what we know about the potential presence near the Gaza border of a company that has emerged as a key instrument in the UAE’s normalization strategy through investment, establishing connections with Israeli trade and technology networks, using its firms for public relations efforts, and owning stakes in the gas field that supplies Cairo. But what about the individuals who welcomed them?

Al-Arjani as a facade for security agencies.

While Al-Arjani’s son was welcoming the Emirati delegation, Khaled Magawar, the newly appointed governor of North Sinai who assumed his role in July, was also there to greet them.

Magawar previously served as a commander in the Second Field Army and as the head of military intelligence during the height of the jihadist insurgency in North Sinai. He also worked as a military attaché in Washington, where he established strong connections within American circles, effectively serving as the “de facto ambassador” during that period.

According to a source working as a researcher on Sinai affairs and familiar with the details on the ground, Magawar has a strong relationship with Al-Arjani due to their collaboration over the years. “Because of Magawar’s important roles in the army in Sinai, he knows Al-Arjani well, as Magawar was directly responsible for the representatives who primarily operated under Al-Arjani’s command and within the framework of the Sinai Tribes Union.”

The source, who preferred to remain anonymous for personal safety reasons, stated that Magawar is one of the key figures overseeing the “representatives,” to the extent that he has earned the nickname “Abu Al-Manadib.”

According to Human Rights Watch, “the representatives” is the term used by Egyptian authorities to describe armed militias that blend intelligence-gathering roles with police functions. These militias primarily operated under Al-Arjani’s command.

Their most significant expansion occurred in mid-2021 when military intelligence, led by Magawar at that time, asked leaders from the Sawarka, Tarabin, and Ramlit tribes to establish armed groups from their clans. These groups were financed by businessmen affiliated with the tribes and received training at army facilities in Al-Arish and Bir al-Abd, as reported by the Sinai Foundation for Human Rights.

The researcher on Sinai affairs believes that the good relationship between Magawar and Al-Arjani may play a role in Sinai, but he argues that Al-Arjani’s influence has completely surpassed Khaled Magawar and those like him. “While their relationship may have been significant and strong at one time in the past, since 2022, Al-Arjani has become a completely different person.”

The Sinai source asserts that Al-Arjani serves as a front, while the true mastermind is Major General Loay Zamzam, the former head of military intelligence in North Sinai from 2011 to 2012, who retired in 2014. He is seen as the one who “guided Al-Arjani and helped him rise,” reflecting their increasing influence. Zamzam currently works as Al-Arjani’s deputy in leading the “Al-Arjani Group.”

“Loay Zamzam is the one managing Sinai Investment Company and the Sons of Sinai Company. Any operations of the ‘Al-Arjani Group’ in Sinai are overseen by Zamzam, who coordinates with security agencies,” the Sinai source explains. He adds, “If you want to understand how Al-Arjani operates, the extent of his relationships, influence, and control, as well as any new developments involving him, you must follow Zamzam.”

Al-Shalaq Village as a Target for the Emirati Company

While visiting North Sinai, the delegation from the Emirati company “Masdar” toured the area of Al-Shalaq Village, situated along the coast of Sheikh Zuweid, according to remarks by Fayezi Abu Harb, a senator who accompanied the delegation, reported by Mada Masr.

According to satellite images, Al-Shalaq Village is located about 20 kilometers from the Gaza border. More importantly, the village houses a transformer station responsible for distributing electricity to the neighboring areas, making it the closest to Gaza.

“The Al-Shalaq station is responsible for distributing electricity to Sheikh Zuweid, Rafah, and even to Karam Abu Salem, Al-Auja, and surrounding areas. Naturally, if electricity were to flow into Gaza in the future, it would come through the Al-Shalaq transformer station,” explains the researcher specializing in Sinai affairs.

The former governor of North Sinai mentioned in 2021, when the station’s construction began, that it would meet 30% of Gaza’s electricity requirements. However, this has not materialized on the ground, even though the station has been operational since mid-2022.

In this context, Yazeed Saig, a researcher focused on Egyptian civil-military relations, argues that the UAE will never perceive Sinai as an investment site. “Any activity in that area will inevitably be connected to initiatives related to Gaza,” he states.

Saig believes that “the potential power station in Al-Shalaq may indicate an expectation of hosting displaced Palestinians from Gaza, though this doesn’t preclude the possibility of using the station to supply electricity to Gaza if the war stops and reconstruction begins.”

Did the change in military leadership play a role?

The revival of the Arab tribes’ union, after months of inactivity, is closely linked to the re-emergence of the Al-Arjani family as a potential sponsor for Gulf investments in their regions of influence.

The union uniting Egyptian Arab tribes under Al-Arjani’s leadership was designed to act as a significant support network in Sinai, especially in light of border tensions with Israel and the prospect of potential Palestinian displacement.

However, the union faced significant criticism upon its emergence and rejection from civil opposition, leading to a freeze in its activities. It has recently resurfaced, holding meetings with various tribes from different Egyptian governorates.

This resurgence and the visit of the Emirati delegation come just weeks after a reshuffling of senior military leadership in Egypt, which reports indicate was a result of disagreements with President Abdel Fattah el-Sisi regarding the handling of the Gaza conflict and Israel’s occupation of the Philadelphi Corridor.

Sisi appointed a defense minister who had retired from military service years earlier, previously serving as the governor of Suez and aspiring to take on the role of minister of local administration.

This is in addition to the Ras al-Hikma deal on the Mediterranean coast, which many within the military view as a threat to Egypt’s northern coast and a gateway for other nationalities, primarily Israelis, to enter the area, according to a report by the “Al-Hurra” website.

This is accompanied by resistance from the military establishment to selling its stakes to Gulf investors, according to the Carnegie Middle East Center, which noted that the recent changes made by Sisi in the military leadership are in the context of his disagreements with his generals regarding leasing land and facilities in the Suez Canal area to foreign investors, and more recently concerning the potential resettlement of Palestinians from Gaza in Egypt, which Sisi is believed to support while the military and security establishment oppose it.

Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, stated that “the President is keen for Arab funds to be responsible for contributing to development programs in the Sinai Peninsula.”

However, Yazeed Sayigh believes that the situation has reversed, as “it seems that Sisi has entrusted mediation regarding Gaza to the UAE. Therefore, any steps taken by the UAE in Sinai, apart from those in the Suez Canal economic zone, primarily serve the political project rather than the commercial one.”