Arab countries of North Africa feel coronavirus’ economic pain

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Impoverished Tunisian citizens gather outside Tunis on March 30 to claim the financial aid promised by the government. (AFP)
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Updated 12 August 2020
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Arab countries of North Africa feel coronavirus’ economic pain

  • Maghreb countries urged to set aside their differences if they want their responses to the crisis to succeed
  • Projected drop in overall tourism revenue across the Maghreb region for 2020 is estimated at $34.1 billion

DUBAI: The peaceful demonstrations demanding political change in Algeria have been silenced. Another fight now keeps the country preoccupied — the coronavirus threat.

On March 17, President Abdelmadjid Tebboune announced that there would be a ban on all marches in order to combat the pandemic and, on March 24, the country officially began its lockdown.

Every Friday since Feb. 22, 2019, members of the Hirak movement had marched peacefully demanding regime change, social justice and popular sovereignty.

But today, Algeria’s streets are empty. The cries for change are ghosts of the recent past.

“Now the Hirak gathers digitally to discuss the country’s future through their computers and phones,” Algerian journalist Faycal Metaoui told Arab News.

“There is still desire for change and President Tebboune has said that there will be change. But we do not know when this coronavirus will end, or in what state the country will be in after the next three to four months.”

The crisis has hit oil-dependent Algeria, which also has strong ties with China, particularly hard. The collapse of crude oil prices could send the country reeling into economic and social turmoil.  

Algeria’s lockdown has been extended three times, with the current restrictions set to expire on May 30.

The socio-economic challenges confronting Algeria are emblematic of the situation in all the Maghreb countries as they grapple with the deadly coronavirus pandemic.

The precautionary measures taken so far are bound to exact a harsh toll on the already feeble economies of North Africa.

In Morocco and Tunisia, tourism contributes 19 percent and 15.9 percent respectively to GDP.

Algeria’s energy-dominated economy has never been dependent on tourism or trade, but the country is likely to take a major economic hit due to the collapse of oil prices.

“The differences between the Maghreb countries, especially between Algeria, Morocco and Tunisia, have long been known, but faced with this global crisis the challenges are the same for all of them,” said Slim Bahrini, executive director of the Maghreb Economic Forum (MEF).

“Few COVID-19 tests and few means, coupled with an economy that is likely to worsen in the coming months or collapse after the crisis, portend unprecedented social disruption.”

One clear takeaway from the crisis, according to Bahrini, is this: “Alone, each one of these countries cannot cope with this pandemic.”

On the political front, the lockdowns across North Africa have given the ruling elites a respite from anti-government protests, particularly in Algeria. But this is temporary, say analysts.

“Many North Africans don’t believe that the Arab Spring ever ended,” said an Algerian researcher who spoke to Arab News on condition of anonymity.

“As soon as the lockdown measures are eased, people will be out on the streets again, protesting for change. The authorities will now face a new opposition. We all hope it will remain peaceful.”

For his part, Bahrini says that Maghreb countries must set aside their differences if they want to succeed in their response to the coronavirus threat.

The differences between the Maghreb countries, especially between Algeria, Morocco and Tunisia, have long been known, but faced with this global crisis the challenges are the same for all of them.

Slim Bahrini, Executive Director of the Maghreb Economic Forum (MEF)

“These countries must embark on a radical transformation of their public policies and institutional priorities to cope with the immediate crisis and its long-term impact,” he told Arab News.

“Copy-pasting measures taken by the West saves us time, but our economies will suffer the consequences of this approach in the future.

“The handling of this crisis will undoubtedly lead to a social crisis more serious than the one we know now.”

Take Morocco, the North African country with the most extensive ties to Europe.

Although it has had a relatively low rate of case numbers in comparison with its European neighbors, the effects of the country’s lockdown have crippled tourism.

The National Tourism Confederation (CNT) estimates the projected losses across Morocco for 2020 to be about $34.1 billion in overall tourism revenue and $14 billion for the hotel industry alone.

CNT predicts a 98 percent drop in tourists visiting the country, which will put 500,000 jobs and 8,500 businesses at risk.

“The only hotels that are not closed in Morocco are those that have been given freely from their owners to the government to lodge either health care workers or those in quarantine after they have finished their treatment at the hospital,” said Jalil Benabbes-Taarji, president of the National Association of Tourism Investors.




Dar Ben-Gacem, a 17th-century boutique hotel in the heart of Tunis’s medina, has teamed up with Tunisia's Red Crescent. (Supplied)

There was already high unemployment in Morocco before the pandemic hit. At the end of 2019, close to 1.1 million people were unemployed. To address the crisis, the Moroccan government has created a fund that has now reached more than $3.5 billion.

“The state has indicated that it will support vulnerable sectors and has begun compensating some of the most defenseless affected citizens,” Bahrini said.

While not officially part of the Maghreb, Egypt is one of the North African countries most vulnerable to the pandemic’s fallout.




Egypt is one of the North African countries most vulnerable to the pandemic’s fallout. (Credit: Samy Iverson)

The World Bank will provide $50 million for Egypt as an emergency response under the World Bank Group’s new Fast Track COVID-19 Facility — a global effort to help strengthen the COVID-19 response and shorten the time of recovery.

“The socio-economic turmoil will continue to be a part of the politics of the region until some really systemic change can happen,” said Timothy Kaldas, a nonresident fellow at the Tahrir Institute for Middle East Policy.

“Poverty in Egypt has increased in the past decade. Millions of people have fallen into poverty since the 2016 bailout from the IMF. The tension is there but the question we are all asking is, what is the breaking point?”

The ability to “stay home” in North Africa, like in other parts of the world and even in North America, says Kaldas, is limited to the affluent and not the working class.

“One third of the population in Egypt lives in poverty. Many are getting up each day and going to work because they don’t have a choice.”

“I don’t have much hope,” he told Arab News. “Egypt is likely to continue to muddle along with no massive breakthroughs but no complete collapse either.”

Against this grim background, Tunisia offers a glimmer of hope.

The Tunisian government has put in place a $860 million fund to support businesses, using money previously earmarked for government projects under the 2019 national budget.

However, Tunisia’s already high unemployment level, unchecked public-sector spending and anemic GDP growth rate are likely to aggravate the economic situation.

On the bright side, as the lone surviving Arab Spring democracy, Tunisia can perhaps count on the resilience and capacity-building skills of civil society groups and individuals to cope with the fallout of the coronavirus shock.

A role model in this regard is Leila Ben-Gacem, who has founded Blue Fish, a consultancy firm that promotes cultural diversity through socio-economic development, and Dar Ben-Gacem, a 17th-century boutique hotel in the heart of Tunis’s medina.

“For the first time I had to close the hotel,” the social entrepreneur told Arab News from the capital.

“Instead we collaborated with the Red Crescent, which had a long list of people who had lost their jobs and were unable to feed their families.”

Ben-Gacem has transformed her house into a kitchen, with a team preparing up to 120 meals a day for suffering medina residents.

“I’ve told myself that this is not the year for business,” she told Arab News.

“This is the year to make sure everyone around me is in good health. And when business comes back, it will come back.”

@rebeccaaproctor


Israel says attacks on Iran are ‘nothing’ compared with what is coming

Iranian Red Crescent volunteers gather in front of a building destroyed in an Israeli strike in Tehran on June 14, 2025. (AFP)
Updated 14 June 2025
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Israel says attacks on Iran are ‘nothing’ compared with what is coming

  • Netanyahu said Israel’s strikes had set back Iran’s nuclear program possibly by years but rejected international calls for restraint

JERUSALEM/DUBAI: Iran and Israel traded missiles and airstrikes on Saturday, the day after Israel launched a sweeping air offensive against its old enemy, killing commanders and scientists and bombing nuclear sites in a stated bid to stop it building an atomic weapon.
Israeli Prime Minister Benjamin Netanyahu said Israel’s strikes had set back Iran’s nuclear program possibly by years but rejected international calls for restraint, saying the attack would be intensified.
“We will hit every site and every target of the Ayatollahs’ regime, and what they have felt so far is nothing compared with what they will be handed in the coming days,” he said in a video message.
In Tehran, Iranian state TV reported that around 60 people, including 20 children, had been killed in an attack on a housing complex, with more strikes reported across the country. Israel said it had attacked more than 150 targets.
In Israel, air raid sirens sent residents into shelters as waves of missiles streaked across the sky and interceptors rose to meet them. At least three people were killed overnight. An Israeli official said Iran had fired around 200 ballistic missiles in four waves.
US President Donald Trump has lauded Israel’s strikes and warned of much worse to come unless Iran quickly accepts the sharp downgrading of its nuclear program that the US has demanded in talks that had been due to resume on Sunday.
But with Israel saying its operation could last weeks, and urging Iran’s people to rise up against their Islamic clerical rulers, fears have grown of a regional conflagration dragging in outside powers.
The United States, Israel’s main ally, helped shoot down Iranian missiles, two US officials said.
“If (Supreme Leader Ayatollah Ali) Khamenei continues to fire missiles at the Israeli home front, Tehran will burn,” Israeli Defense Minister Israel Katz said.
Iran had vowed to avenge Friday’s Israeli onslaught, which gutted Iran’s nuclear and military leadership and damaged atomic plants and military bases.
Tehran warned Israel’s allies that their military bases in the region would come under fire too if they helped shoot down Iranian missiles, state television reported.
However, 20 months of war in Gaza and a conflict in Lebanon last year have decimated Tehran’s strongest regional proxies, Hamas in Gaza and Hezbollah in Lebanon, reducing its options for retaliation.
Lawmaker and military general Esmail Kosari said Iran was reviewing whether to close the Strait of Hormuz, the exit point for oil shipped from the Gulf.
Nights of blasts and fear in Israel and Iran
Iran’s overnight fusillade included hundreds of ballistic missiles and drones, an Israeli official said. Three people, including a man and a woman, were killed and dozens wounded, the ambulance service said.
In Rishon LeZion, south of Tel Aviv, emergency services rescued a baby girl trapped in a house hit by a missile, police said, but later on Saturday Tel Aviv beaches were busy with people enjoying the weekend.
In the western suburb of Ramat Gan, near Ben Gurion airport, Linda Grinfeld described her apartment being damaged: “We were sitting in the shelter, and then we heard such a boom. It was awful.”
The Israeli military said it had intercepted surface-to-surface Iranian missiles as well as drones, and that two rockets had been fired from Gaza.
In Iran, Israel’s two days of strikes destroyed residential apartment buildings, killing families and neighbors as apparent collateral damage in strikes targeting scientists and senior officials in their beds.
Iran said 78 people had been killed on the first day and scores more on the second day, many of them when a missile brought down a 14-story apartment block in Tehran.
State TV said 60 people were believed to have been killed there, though the figure was not officially confirmed.
It broadcast pictures of a building flattened into debris and the facade of several upper storys lying sideways in the street, while slabs of concrete dangled from a neighboring building.
“Smoke and dust were filling all the house and we couldn’t breathe,” 45-year-old Tehran resident Mohsen Salehi told Iranian news agency WANA after an overnight air strike woke his family.
Fars News agency said two projectiles had hit Mehrabad airport, located inside the capital, which is both civilian and military.
With Iran’s air defenses heavily damaged, Israeli Air Force chief Tomer Bar said “the road to Iran has been paved.”
In preparation for possible further escalation, reservists were being deployed across Israel. Army Radio reported units had been positioned along the Lebanese and Jordanian borders.
Iranian nuclear sites damaged
Israel sees Iran’s nuclear program as a threat to its existence, and said the bombardment was designed to avert the last steps to production of a nuclear weapon.
A military official on Saturday said Israel had caused significant damage to Iran’s nuclear facilities at Natanz and Isfahan, but had not so far taken on another uranium enrichment site, Fordow, dug into a mountain.
The official said Israel had “eliminated the highest commanders of their military leadership” and had killed nine nuclear scientists who were “main sources of knowledge, main forces driving forward the (nuclear) program.”
Tehran insists the program is entirely civilian in line with its obligations under the nuclear Non-Proliferation Treaty (NPT) and that it does not seek an atomic bomb.
However, it has repeatedly hidden some part from international inspectors, and the International Atomic Energy Agency on Thursday reported it in violation of the NPT.
Iranian talks with the United States to resolve the nuclear dispute have stuttered this year.
The next meeting was set for Sunday but Iranian Foreign Minister Abbas Araqchi said on Saturday that continuing the talks while Israel’s “barbarous” attacks lasted was unjustifiable.


We will recognize the State of Palestine soon, Macron tells Asharq News

French President Emmanuel Macron holds a press conference at the Elysee Palace in Paris on Friday. (File/Reuters)
Updated 14 June 2025
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We will recognize the State of Palestine soon, Macron tells Asharq News

  • French president: ‘I have agreed with the Saudi crown prince to postpone the New York conference to a date in the near future’

PARIS: French President Emmanuel Macron pledged, in statements to Asharq News on the sidelines of a meeting with journalists and representatives of Palestinian and Israeli civil society institutions, that his country will recognize the State of Palestine at an upcoming conference that France will organize with Saudi Arabia in New York.
In response to a question about whether there are conditions for recognizing the Palestinian state, Macron said: “There are no conditions. Recognition will take place through a process that includes stopping the war on Gaza, restoring humanitarian access to the Gaza Strip, releasing Israeli hostages, and disarming Hamas.”
He stressed: “This is one package.”
Macron indicated that France and Saudi Arabia have agreed to postpone the UN conference they are co-organizing, which was originally scheduled to take place in New York next week. He noted that current developments have prevented Palestinian President Mahmoud Abbas from traveling to New York.
Macron explained that he had spoken several times with Crown Prince Mohammed bin Salman on Friday and Palestinian President Abbas, and it was agreed to “postpone the meeting to a date in the near future.”
He also claimed that the president of Indonesia, which currently does not officially recognize Israel, had pledged to do so if France recognizes the State of Palestine. Macron emphasized “the need for maintaining this dynamic.”
The International Conference for the Peaceful Settlement of the Question of Palestine, scheduled to be held in New York from June 17-20 and co-chaired by Saudi Arabia and France, outlined in its paper a commitment to the “two-state solution” as the foundational reference. The paper defines a timeline for implementation, outlines the practical obligations of all parties involved, and calls for the establishment of international mechanisms to ensure the continuity of the process.
Asharq News obtained a copy of the paper, which asserts that the implementation of the two-state solution must proceed regardless of local or regional developments. It ensures the full recognition of a Palestinian state as part of a political solution that upholds people’s rights and responds to their aspirations for peace and security.
The paper highlights that the Oct. 7, 2023, attacks and the war on Gaza have led to an unprecedented escalation in violence and casualties, resulting in the most severe humanitarian crisis to date, widespread destruction, and immense suffering for civilians on both sides, including detainees, their families, and residents of Gaza.
It further confirms that settlement activities pose a threat to the two-state solution, which it states is the only path to achieving a just, lasting, and comprehensive peace in the region. The paper notes that the settlement activities undermine regional and international peace, security, and prosperity.
According to the paper, the conference aims to alter the current course by building on national, regional, and international initiatives and adopting concrete measures to uphold international law. The conference will also focus on advancing a just, lasting, and comprehensive peace that ensures security for all the people of the region and fosters regional integration.
The conference reaffirms the international community’s unwavering commitment to a peaceful resolution of the Palestinian cause and the two-state solution, highlighting the urgent need to act in pursuit of these objectives.


Iranian media claims Israeli pilots captured, IDF denies

Updated 14 June 2025
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Iranian media claims Israeli pilots captured, IDF denies

DUBAI: The Iranian army has claimed they have downed a third Israeli F-35 fighter jet since Israel’s attacks began on Friday.

State Iranian media, Tehran Times, reported that one pilot is believed to have been liquidated and another captured by Iranian forces.

However, the Israeli Defense Forces denied the claims dubbing the news “fake”.

“This news being spread by Iranian media is completely baseless” the IDF’s Arabic spokesperson Col. Avichay Adraee said.

Israeli Prime Minister Benjamin Netanyahu announced on Friday the launch of “Operation Rising Lion” against Iran in an effort to deter the Iranian threat of nuclear weapons to Israel. Netanyahu confirmed the operation will continue until the mission is accomplished.


Closure of Strait of Hormuz seriously being reviewed by Iran, lawmaker says

Updated 14 June 2025
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Closure of Strait of Hormuz seriously being reviewed by Iran, lawmaker says

  • The Strait of Hormuz, which lies between Oman and Iran, is the world’s most important gateway for oil shipping

The closure of the strategic Strait of Hormuz was being seriously reviewed by Iran, IRINN reported, citing statements by Esmail Kosari, a member of the parliament’s security commission.

The Strait of Hormuz, which lies between Oman and Iran, is the world’s most important gateway for oil shipping.


Jordan reopens airspace to civilian aircraft

Updated 14 June 2025
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Jordan reopens airspace to civilian aircraft

  • Jordan said airlines would be provided with the “necessary” information to notify passengers and stakeholders of the latest data on air traffic

DUBAI: Jordan has reopened its airspace to civilian aircraft on Saturday, signaling belief there was no longer an immediate danger of further attacks after crossfire between Israel and Iran disrupted East-West travel through the Middle East.
But the country “is continuing to assess risks to civil aviation and monitor developments after Jordan’s airspace was reopened this morning,” a statement from the civil aviation authority said, and reported by state-run Petra news.
The Kingdom on Friday closed its airspace to all flights due to the barrage of missiles and rockets from Iran.
The statement also said airlines would be provided with the “necessary” information to notify passengers and stakeholders of the latest data on air traffic.
Lebanon’s government also temporarily reopened its airspace on Saturday.
Lebanon reopened its airspace on Saturday at 10:00 a.m. (0700 GMT).
The airspace will be shut again starting from 10:30 p.m. (1930 GMT) until 6:00 a.m. (0300 GMT) on Sunday, NNA reported, citing the Lebanese civil aviation authority.