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’s blockade means Gaza’s hospitals cannot provide food to recovering patients

Updated 8 sec ago
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Israel’s blockade means Gaza’s hospitals cannot provide food to recovering patients

  • Hospital patients are among the most vulnerable as Palestinians across Gaza struggle to feed themselves, with Israel’s blockade on food and other supplies entering the territory now in its third month

KHAN YOUNIS, Gaza Strip: It cost a fortune, she said, but Asmaa Fayez managed to buy a few zucchinis in a Gaza market. She cooked them with rice and brought it to her 4-year-old son, who has been in the hospital for the past week. The soup was his only meal of the day, and he asked for more.
“It’s all finished, darling,” Fayez replied softly. Still, it was an improvement from the canned beans and tuna she brings on other days, she said.
Hospital patients are among the most vulnerable as Palestinians across Gaza struggle to feed themselves, with Israel’s blockade on food and other supplies entering the territory now in its third month.
With hospitals unable to provide food, families must bring whatever they can find for loved ones.
“Most, if not all, wounded patients have lost weight, especially in the past two months,” Dr. Khaled Alserr, a general surgeon at Nasser Hospital in the southern city of Khan Younis, told The Associated Press. Nutritional supplements for intensive care unit patients are lacking, he said.
“Our hands are tied when it comes to making the best choice for patients. Choices are limited,” he said.
Hunger worsens as supplies dwindle
Malnutrition is on the rise across Gaza, aid groups say. Thousands of children have been found with acute malnutrition in the past month, but adults as well are not getting proper nutrients, according to the UN It estimates that 16,000 pregnant women and new mothers this year face acute malnutrition.
Since Israel’s blockade began on March 2, food sources have been drying up. Aid groups have stopped food distribution. Bakeries have closed. Charity kitchens handing out bowls of pasta or lentils remain the last lifeline for most of the population, but they are rapidly closing for lack of supplies, the UN says.
Markets are empty of almost everything but canned goods and small amounts of vegetables, and prices have been rising. Local production of vegetables has plummeted because Israeli forces have damaged 80 percent of Gaza’s farmlands, the UN says, and much of the rest is inaccessible inside newly declared military zones.
Fayez’s son, Ali Al-Dbary, was admitted to Nasser Hospital because of a blocked intestine, suffering from severe cramps and unable to use the bathroom. Fayez believes it’s because he has been eating little but canned goods. She splurged on the zucchini, which now costs around $10 a kilogram (2.2 pounds). Before the war it was less than a dollar.
Doctors said the hospital doesn’t have a functioning scanner to diagnose her son and decide whether he needs surgery.
Israel says it imposed the blockade and resumed its military campaign in March to pressure Hamas to release its remaining hostages and disarm.
Hamas ignited the war with its Oct. 7, 2023, attack on Israel, in which militants killed some 1,200 people, mostly civilians, and took 251 hostage, most of whom have been released in ceasefire agreements or other deals. Israel’s offensive has killed over 52,000 Palestinians, mostly women and children, according to Gaza’s Health Ministry, which does not say how many of the dead were civilians or combatants.
Concern over Israeli plans to control aid
Israeli officials have asserted that enough food entered Gaza during a two-month ceasefire earlier this year. Rights groups have disputed that and called the blockade a “starvation tactic” and a potential war crime.
Now Israeli plans to control aid distribution in Gaza, using private contractors to distribute supplies. The UN and aid groups have rejected the idea, saying it could restrict who is eligible to give and receive aid and could force large numbers of Palestinians to move — which would violate international law.

Those under care at hospitals, and their families who scrounge to feed them, would face further challenges under Israel’s proposal. Moving to reach aid could be out of the question.
Another patient at Nasser Hospital, 19-year-old Asmaa Faraj, had shrapnel in her chest from an airstrike that hit close to her tent and a nearby charity kitchen in camps for displaced people outside Khan Younis.
When the AP visited, the only food she had was a small bag of dates, a date cookie and some water bottles. Her sister brought her some pickles.
“People used to bring fruits as a gift when they visited sick people in hospitals,” said the sister, Salwa Faraj. “Today, we have bottles of water.”
She said her sister needs protein, fruits and vegetables but none are available.
Mohammed Al-Bursh managed to find a few cans of tuna and beans to bring for his 30-year-old son, Sobhi, who was wounded in an airstrike three months ago. Sobhi’s left foot was amputated, and he has two shattered vertebrae in his neck.
Al-Bursh gently gave his son spoonfuls of beans as he lay still in the hospital bed, a brace on his neck.
“Everything is expensive,” Sobhi Al-Bursh said, gritting with pain that he says is constant. He said he limits what he eats to help save his father money.
He believes that his body needs meat to heal. “It has been three months, and nothing heals,” he said.
 


Trump hails US-Israeli hostage release as ‘monumental news’

Updated 12 May 2025
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Trump hails US-Israeli hostage release as ‘monumental news’

WASHINGTON: Donald Trump on Sunday celebrated an announcement by Hamas that it would release US-Israeli hostage Edan Alexander from Gaza, with the US president saying he hoped all hostages would be released and fighting ended.
“I am grateful to all those involved in making this monumental news happen,” Trump said in a post on social media, describing the release as a “good faith gesture,” adding: “Hopefully this is the first of those final steps necessary to end this brutal conflict.”
 

 


Israel attacks Yemen’s Hodeidah after evacuation warnings, Houthis say

A charred tank truck stands at an oil storage facility after Israeli strikes in Yemen’s Houthi-held port city of Hodeidah.
Updated 11 May 2025
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Israel attacks Yemen’s Hodeidah after evacuation warnings, Houthis say

  • Strikes came shortly after Israel warned residents of Ras Isa, Hodeidah and Salif to leave, saying the ports were being used by the Iranian-backed Houthis

HODEIDAH: Israel attacked Hodeidah in Yemen after the Israeli army said it had warned residents of three ports under Houthi control to evacuate, the Houthi interior ministry said on Sunday.
The strikes came shortly after Israel warned residents of Ras Isa, Hodeidah and Salif to leave, saying the ports were being used by the Iranian-backed Houthis.
There was no immediate comment on the attack from Israel.
The strikes came a few days after a missile launched toward Israel by the Houthis was intercepted.
The attack came ahead of US President Donald Trump’s visit to the Middle East this week.
Trump, who had launched an intensified military campaign against Houthi strongholds in Yemen on March 15, agreed to an Oman-mediated ceasefire deal with the group, who said the accord did not include Israel.
The Houthis have been launching missiles and drones at Israel as well as attacking vessels in global shipping lanes, in a campaign that they say is aimed at showing solidarity with Palestinians in Gaza.
Israel has carried out numerous retaliatory airstrikes on Houthi targets in Yemen.


Hamas, Trump envoy say last living US hostage in Gaza to be released in truce efforts

US-Israeli hostage Edan Alexander has been held by Hamas since the October 7, 2023 attack that triggered the Gaza war. (File/AFP
Updated 12 May 2025
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Hamas, Trump envoy say last living US hostage in Gaza to be released in truce efforts

  • Envoy Steve Witkoff confirmed that Hamas had agreed to release Edan Alexander as a good will gesture toward Trump
  • Alexander is an Israeli-American soldier who grew up in the United States
  • Trump has frequently mentioned Alexander, now 21, by name in the past few months

DEIR AL-BALAH, Gaza Strip: Hamas said Sunday that the last living American hostage in Gaza, Edan Alexander, will be released as part of efforts to establish a ceasefire, reopen crossings into the Israeli-blockaded territory and resume the delivery of aid. Two Hamas officials told The Associated Press they expect the release in the next 48 hours.
US President Donald Trump’s envoy Steve Witkoff confirmed late Sunday in a message to AP that Hamas had agreed to release Alexander as a good will gesture toward Trump.
The announcement of the first hostage release since Israel shattered a ceasefire in March comes shortly before Trump visits the Middle East this week. It highlighted the willingness of Israel’s closest ally to inject momentum into ceasefire talks for the 19-month war as desperation grows among hostages’ families and Gaza’s over 2 million people under the new Israeli blockade.
Alexander is an Israeli-American soldier who grew up in New Jersey. He was abducted from his base during the Oct. 7, 2023, Hamas-led attack that ignited the war in Gaza.
Israeli Prime Minister Benjamin Netanyahu’s office said the US informed it of Hamas’ intent to release Alexander “without compensation or conditions” and that the step is expected to lead to negotiations on a truce. Netanyahu’s government was angered by US direct talks with Hamas earlier this year — which led to a Hamas offer to release Alexander and the bodies of four other hostages if Israel recommitted to a stalled ceasefire deal. Days later, however, Israel resumed the war.
Witkoff told the AP that Hamas’ goal in releasing Alexander was to restart talks on a ceasefire, the release of additional hostages and a surge of humanitarian aid into Gaza before Israel carries out a threatened total takeover of the territory.
Khalil Al-Hayyah, a Hamas leader in Gaza, said the group has been in contact with the US administration over the past few days.
Al-Hayyah said in a statement Hamas is ready to “immediately start intensive negotiations” to reach a final deal for a long-term truce, which includes an end to the war, the exchange of Palestinian prisoners and hostages in Gaza and the handing over of power in Gaza to an independent body of technocrats.
Indirect talks between Hamas and the US began five days ago, an Egyptian official and a senior Hamas official told the AP, with both describing the release of Alexander as a gesture of goodwill.
The senior Hamas official, speaking on condition of anonymity because he was not authorized to speak to the media, said Alexander is expected to be released on Monday. Hamas was advised to “give a gift to President Trump and in return he will give back a better one,” the official said.
Another Hamas official, speaking on condition of anonymity to discuss negotiations, said Alexander’s release is expected in the next 48 hours, adding that it requires Israel to pause fighting for a couple of hours.
The Egyptian official involved in ceasefire negotiations, speaking on condition of anonymity to discuss talks, said Hamas received assurances from the Trump administration through Egyptian and Qatari mediators that Alexander’s release “will put all files on the negotiating table” including an end to the war.
Alexander’s parents did not immediately return requests for comment.
Trump and Witkoff have frequently mentioned Alexander, now 21, by name in the past few months. Witkoff was traveling to the region on Monday ahead of Alexander’s expected release.
“Every time they say Edan’s name, it’s like they didn’t forget. They didn’t forget he’s American, and they’re working on it,” Edan’s mother, Yael Alexander, told The Associated Press earlier this year.
Hamas released a video of Alexander in November during the Thanksgiving weekend, his mother said. The video was difficult to watch as he cried and pleaded for help, but it was a relief to see the latest sign that he was alive, she said.
Fifty-nine hostages are still in Gaza, around a third of them believed to be alive. Most of the rest were released in ceasefire agreements or other deals. The Hostages Families Forum, the grassroots forum representing most hostage families, said Alexander’s release “must mark the beginning of a comprehensive agreement” that will free everyone.
Trump, whose administration has voiced full support for Israel’s actions, is set to visit Saudi Arabia, Qatar and the United Arab Emirates this week in a regional tour.
Bombardment continues
Israeli strikes overnight and into Sunday killed 15 people in Gaza, mostly women and children, according to local health officials.
Two strikes hit tents in the southern city of Khan Younis, each killing two children and their parents, according to Nasser Hospital, which received the bodies. Another seven people were killed in strikes elsewhere, including a man and his child in a Gaza City neighborhood, according to hospitals and Gaza’s Health Ministry.
The Israeli military says it only targets militants and tries to avoid harming civilians. It blames Hamas for civilian deaths in the 19-month-old war because the militants are embedded in densely populated areas.
Israel has sealed Gaza off from all imports, including food, medicine and emergency shelter, for over 10 weeks in what it says is a pressure tactic aimed at forcing Hamas to release hostages. Israel in March shattered the ceasefire that had facilitated the release of more than 30 hostages.
Aid groups say the humanitarian crisis is worse than at any time in the war, with food running low.
The war began when Hamas-led militants attacked southern Israel, killing some 1,200 people, mostly civilians, and taking 251 hostage.
Israel’s offensive has killed over 52,800 Palestinians, mostly women and children, according to Gaza’s Health Ministry, which does not say how many of the dead were combatants or civilians. The offensive has destroyed vast areas of the territory and displaced some 90 percent of its population.
Israel recovers remains of soldier killed in Lebanon in 1982
In a separate development, Israel said it retrieved the remains of a soldier killed in a 1982 battle in southern Lebanon after he had been classified as missing for more than four decades.
The Israeli military said Sgt. 1st Class Tzvi Feldman’s remains were recovered from deep inside Syria, without providing further details.
Netanyahu visited Feldman’s surviving siblings and told them that the overthrow of Syrian President Bashar Assad late last year led to an “opportunity” that allowed the military and the Mossad, Israel’s foreign intelligence agency, to gather additional intelligence and locate and retrieve the body, according to video released by his office.
Feldman went missing, along with five other Israeli soldiers, in a battle with Syrian forces in the Lebanese town of Sultan Yaaqoub.


Qatar delivers more than 60,000 tonnes of fuel to Lebanese army

Updated 11 May 2025
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Qatar delivers more than 60,000 tonnes of fuel to Lebanese army

  • Delivery is third and final shipment of fuel for 25
  • Qatar’s actions indicate its support for the Lebanese people

LONDON: Qatar dispatched more than 60,000 tonnes of fuel to Lebanon on Sunday as part of ongoing efforts to strengthen the country’s security capabilities.

The Qatar Fund for Development delivered the third and final fuel shipment for 2025, which comprised 62,000 tonnes of fuel, to the northern Lebanese port of Tripoli.

The fund stated that the shipment is intended to strengthen the Lebanese army’s operational capabilities and contribute to Lebanon's security and stability, the Qatar News Agency reported.

The delivery is a sign of Qatar’s support for the Lebanese people, as well as a contribution to prosperity and stability in the country, the QNA added.