Fears have increased in Egypt about facing a new high-cost crisis, with expectations of an increase in fuel prices, in light of the turmoil in global oil markets, and the government’s decision to resume the work of the “Automatic Pricing Committee” for petroleum products, starting last July.
The Finish Solutions Foundation, which is concerned with economic research, expected an increase in fuel prices in Egypt during this September, and stressed that “the Egyptian government seeks to achieve the financial goals of the general budget that began last July, which means it will resort to reducing spending on fuel.”
The annual inflation rate in Egyptian cities recorded 14.5 percent last August, compared to 14.9 percent in July, according to data issued Thursday by the Central Agency for Public Mobilization and Statistics.
In the opinion of economic expert Dr. Wael Al-Nahhas, the international organization’s expectations are consistent with the economic indicators that reinforce the Egyptian government’s resort to increasing fuel prices during the current month after the price of a barrel of oil reached $100.
He told Asharq Al-Awsat, “The indicators that suggest an increase in fuel prices in Egypt during the current month will not be the last,” expecting “a next increase in November, as the Egyptian government seeks to permanently lift fuel subsidies.”
The Egyptian government decided to raise fuel prices on March 10 by rates ranging between 14 percent and 30 percent, for gasoline, automobile gas, and domestic and commercial stove cylinders.
Al-Nahhas stressed that “increasing the price of gasoline will lead to a new rise in the prices of most goods and services, due to the increase in the cost of production.”
Mahmoud Al-Asqalani, head of the Citizens Against High Prices Association for Consumer Protection, believes that any new increase in fuel prices in Egypt will lead to a wave of high prices whose effects are difficult to calculate. He told Asharq Al-Awsat that the rise in gasoline prices “will lead to an increase in the prices of all goods and services.”
He explained, "Citizens are trying to bear the high prices, and some may be unable to manage their daily living expenses and food. The government must look for other solutions that do not include approving any new increases."
Cairo announced the formation of the Egyptian side of the “Business Council” with Syria, months after Damascus approved the names of its representatives in it.
The growing rapprochement between the two countries in the economic file is seen by experts who spoke to Asharq Al-Awsat as being similar to “the rapprochement between Egypt and Turkey during their previous disputes,” expecting that “the economy will be the gateway to rapprochement between the two countries before it turns into a political and diplomatic path and a broader partnership.”
In 2013, Egypt's relations with Turkey deteriorated due to deep political differences, but it kept the economic track in place, before recent years witnessed the restoration of the path of full normalization of relations, and the exchange of presidential and ministerial visits between the two countries.
The growth of this economic path between Egypt and Syria is evident with the Egyptian Minister of Investment Mohamed Farid issuing a decision on September 9 to form the Egyptian side in the Egyptian-Syrian Council for a period of three years.
According to media outlets, the Egyptian side includes “leaders and businessmen representing various economic and industrial sectors, including energy, contracting and construction, iron and steel, real estate development, food industries, pharmaceuticals and medical supplies, engineering, furniture, and consumer goods.”
Prior to that Egyptian decision, Foreign Minister Badr Abdel-Ati met with his Syrian counterpart, Asaad Al-Shaibani, on September 7 in Cairo, on the sidelines of the Arab League ministerial meeting, and they reviewed “the development of Egyptian-Syrian relations and ways to enhance bilateral cooperation in the economic and commercial fields,” according to a statement by the Egyptian Foreign Ministry.
Last May, the Syrian Minister of Economy and Industry, Muhammad Nidal Al-Shaar, issued a decision to form the Syrian-Egyptian Business Council on the Syrian side, within the framework of enhancing joint economic cooperation between the two countries, according to a statement by the ministry at the time.
The Secretary-General of the Al-Farabi Center for Studies, Mukhtar Ghobashi, believes that the model for restoring relations between Egypt and Turkey, which was based at the beginning of resolving differences on the economy, may be to some extent similar to the current path followed by Cairo in rapprochement with Damascus, noting that “the formation of a business council on the Egyptian side is an important step, and will contribute to the growth of relations economically.”
Ghobashi believes that the Egyptian-Turkish rapprochement, which is currently at its peak, may help accelerate Egyptian-Syrian steps, especially in light of the very strong rapprochement between Damascus and Ankara.
In this regard, Syrian political analyst Abdullah Al-Hamad said, “Cairo is trying to build bridges of trust towards Damascus, relying on an important experience, which is its relations with Ankara, which witnessed some tensions in some historical stages, but in the end the two parties returned from the gate of economy and investment.”
Since the fall of Bashar al-Assad in December 2024, Egyptian-Syrian relations seemed to be moving towards cautious bilateral contacts due to Cairo’s fears about the militant file, before this gradually moved towards economic cooperation.
In late April, Egyptian President Abdel Fattah El-Sisi met his Syrian counterpart Ahmed Al-Sharaa on the sidelines of the “Arab-European Consultative Summit” held in Cyprus. Media outlets in Cairo and Damascus reported at the time that a “friendly conversation” took place between the two presidents to discuss developments in the region and enhance cooperation.
This was followed by a visit by Al-Shaibani to Cairo last May, which resulted in the announcement of the formation of the Joint Business Council and the expansion of areas of trade and economic cooperation, while emphasizing the importance of coordinating positions on developments in the region.
Last August, Syrian diplomat Yahya Diab assumed his duties as Charge d'Affairs of the Syrian mission in Cairo, after being approved by the Egyptian authorities.
Al-Hamad explained that “Damascus and Cairo have common points on the political, diplomatic, economic, cultural and social levels, and currently the two parties are trying to find commonalities to connect these points and reach political, economic and diplomatic understandings that will bring prosperity and a positive impact on them.”
Ghobashi believes that “the continuation of the Egyptian-Syrian steps and their strengthening by strengthening the economic path will inevitably lead to the rapid restoration of relations between Cairo and Damascus, especially since Egypt realizes the importance of Syria to it and the region, and Damascus also realizes Egypt’s position and role in the region, and is keen on the complete normalization of relations as well, and perhaps Turkey will play a role in accelerating that path.”
Meanwhile, on Thursday, Egypt condemned in the strongest terms the repeated Israeli incursions into Syrian territory, and considered them “a blatant violation of the sovereignty of the Syrian Arab Republic and the unity and integrity of its lands, and a clear violation of the provisions of international law.”
In a statement to the Foreign Ministry, it affirmed its “complete rejection of all Israeli violations and incursions into Syrian territory,” and warned that “the continuation of these escalatory practices would inflame tensions and undermine security and stability in the region.” It renewed its “full solidarity with Syria and its support for its sovereignty, unity and territorial integrity,” stressing “the necessity of Israel’s withdrawal from the occupied Syrian territories and adherence to the 1974 Disengagement Agreement.”
The number of tourists arriving to the Gulf Cooperation Council countries reached more than 75 million tourists during the year 2025, achieving a growth of 4.8 percent, while the number of tourists who traveled between the GCC countries reached about 20 million tourists, an increase of 3.6 percent compared to 2024.
This comes at a time when intra-Gulf tourism is witnessing increasing momentum. During the first half of 2026, Saudi Arabia received about 3.2 million tourists from the Gulf Cooperation Council countries, an indication of the expansion of travel between countries in the region and the growing demand for Gulf destinations.
The Secretary-General of the Gulf Cooperation Council, Jassim Al-Budaiwi, said that tourism spending in the GCC countries exceeded 131 billion dollars during the year 2025, compared to about 120 billion in the previous year, while the direct and indirect contribution of tourism to the economies of the GCC countries amounted to about 254 billion dollars, equivalent to 11.4 percent of the gross domestic product.
Al-Budaiwi explained, during the tenth meeting of ministers responsible for tourism in the Gulf Cooperation Council countries, which was held in Manama and headed by the Bahraini Minister of Tourism, Fatima bint Jaafar Al-Sirafi, that these indicators reflect the progress achieved by the GCC countries in developing the tourism sector, and confirm its growing role in supporting growth and diversification of Gulf economies.
Saudi Arabia, represented by Minister of Tourism Ahmed Al-Khatib, participated in the meeting within the framework of Bahrain’s presidency of the forty-sixth session of the Gulf Cooperation Council.
He pointed out that these numbers “do not merely represent indicators of growth,” but rather reflect important development and economic gains, stressing that the next stage requires building on these results and strengthening the sector’s ability to protect its gains and sustain them in the face of changes, in order to reach the goals of the Gulf Tourism Strategy 2023-2030.
Al-Budaiwi stressed that the next phase focuses on three main tracks, including enhancing the flexibility and readiness of the tourism sector, accelerating the implementation of joint Gulf initiatives and projects, and deepening tourism integration between the GCC countries, in a way that enhances intra-tourism and benefits from the diversity of tourism components in the Gulf countries.
The meeting discussed the joint Gulf action plan to accelerate the recovery of the tourism sector, in addition to joint tourism promotion efforts, developing Gulf tourism packages and programmes, and enhancing the tourism presence of the GCC countries in the targeted international markets.
The ministers also discussed developing the joint media movement, the Gulf tourism data dashboard and indicators, in a way that supports the availability of data and enhances the ability to measure the sector’s performance and identify growth opportunities.
The meeting discussed a number of initiatives aimed at supporting tourism cooperation and integration, including joint marketing campaigns, exchanging experiences and knowledge in the field of tourism statistics and data, in addition to the unified tourism guide license and the hotel classification guideline.
The ministers also discussed choosing the Gulf Tourism Capital for the year 2027, areas of international cooperation, and joint tourism activities and events, in a way that supports the development of an integrated Gulf tourism product and enhances the ability to attract visitors from global markets.
The meeting comes as an extension of the joint Gulf tourism work path, and a follow-up to what was discussed during the extraordinary meeting of ministers responsible for tourism held last April, in a way that supports continued coordination between the GCC countries and raises the sector’s readiness to deal with the changes.
Saudi Arabia’s participation confirms its keenness to continue its role in supporting joint Gulf tourism work, and to contribute to coordinating priorities and advancing areas of cooperation between the GCC countries, in a way that enhances integration between Gulf tourist destinations.
