While military and intelligence coordination between the two countries is by all accounts thriving, trade has always lagged behind security cooperation. Now, writes Haisam Hassanein, it, too, is improving:
This April, for the first time in ten years, an Israeli delegation traveled to Egypt to discuss ways of enhancing economic cooperation. . . . Following the 2011 [Arab Spring] uprising, Israeli tourism to Egypt had witnessed a massive decrease. . . . The numbers slowly began to recover thereafter. . . . These numbers rose [again] throughout the summer [of this year]. . . . Indeed, thousands of tourists have continued to flock to Sinai beaches despite constant security warnings from Israeli authorities and frequent clashes between terrorist groups and the Egyptian military. . . .
The one-directional nature of Israeli-Egyptian tourism remains a problem, though things are changing in this regard. In May, a delegation from the Egyptian tourism industry met with Israelis in Jerusalem and agreed to increase the number of Coptic Christians allowed to visit holy sites in Israel. For their part, the Israelis promised to increase the tourist flow to Egypt. . . .
Since the 2011 uprising, Egypt has been running out of options to save its economy, as evidenced by its struggle to fix growing budget deficits, increasing unemployment, lagging tourism, and dwindling foreign direct investments. . . .
Even amid these negative trends, however, a positive bilateral dynamic has been developing [between Cairo and Jerusalem]. Three decades ago, Washington felt compelled to keep itself directly involved in managing the Egypt-Israel relationship. Nowadays, changing regional dynamics have allowed the two countries to move closer without a U.S. catalyst. Given their deep security cooperation and Egypt’s ongoing economic meltdown, the two neighbors might be on the verge of a new era of cooperation.
Read more on Washington Institute: http://www.washingtoninstitute.org/policy-analysis/view/egypt-and-israels-growing-economic-cooperation