Top News: Emergency Ceasefire Fails as Houthis Continue Military Campaign

A new ceasefire in Yemen failed as clashes continued in the key areas of al-Lahj, Aden, and Taiz. The humanitarian truce, declared by the Saudi-led Arab coalition, was meant to begin on Sunday at 11:59 p.m. to allow for distribution of much needed aid supplies and fuel.

Houthi leaders claimed that they were not informed of the ceasefire agreement by the United Nations. One prominent figure rejected the truce in a twitter statement. Fighting between the Houthis and Saudi-backed fighters intensified in the area surrounding the al-Anad air base, a critical military staging point for control of Aden. Meanwhile, in Sana’a, three civilians were killed in a bombing on Sunday. [Reuters, 7/27/2015]


EGYPT | LIBYA & THE MAGHREB | SYRIA & ITS NEIGHBORS | YEMEN & THE GULF | ECONOMICS


EGYPT

Prime Minister extends North Sinai curfew for three months
Prime Minister Ibrahim Mahlab has extended for three months a curfew in North Sinai, according to a decree issued in the government’s official gazette on Saturday. The designated areas of the curfew include Rafah, al-Arish and Sheikh Zuweid cities, and surrounding areas. North Sinai residents responded, demanding the curfew be lifted, according to independent daily, Al-Masry al-Youm. Meanwhile, attacks in North Sinai continued over the weekend, and into the beginning of the week. An explosion in North Sinai’s Sheikh Zuweid town injured two military officers and a conscript late Friday, security sources said. A roadside bomb exploded early Sunday on a coastal road in al-Arish, injuring eighteen soldiers, security sources told Al-Ahram. Hospital officials confirmed the casualty figure and said none of those hurt had life-threatening wounds. The attack was claimed by Sinai State, an Islamist militant group formerly known as Ansar Bayt al-Maqdis, and an affiliate of the Islamic State. A conscript was also wounded in the arm on Sunday by a sniper while he was on duty at a checkpoint south of Rafah. A woman was killed and two children were injured when their house in North Sinai was hit by a shell from an unknown source on Sunday, medical sources said. The shell struck the house after clashes between security forces and militants, an eyewitness told Aswat Masriya. Unknown gunmen kidnapped a local man at gunpoint on Monday, taking him to an unknown destination. Eyewitnesses said the kidnapping could be attributed to the victim’s cooperation with security services. [Ahram Online, Reuters, SIS, DNE, Egypt Independent, 7/27/2015]

US-Egypt strategic dialogue delayed to August 2
Strategic US-Egyptian dialogue, which has long been in the pipeline, recently faced an apparently final postponement, as the Foreign Ministry announced the talks will be held on August 2. In a meeting between Foreign Minister Sameh Shoukry and foreign correspondents, Shoukry highlighted “the strength and importance of the continuing partnership between Egypt and the US,” according to a ministry statement. [DNE, Ahram Online, 7/27/2015]

New Suez Canal to bring fresh development projects to Egypt says Sisi
Egypt will witness the establishment of several development projects following the inauguration of the new Suez Canal August 6, according to a presidency statement quoting President Abdel-Fattah al-Sisi, following his meeting with French Defense Minister Jean-Yves Le Drian in Cairo on Saturday. The new national projects aim at compensating Egyptians in long-missed development, Sisi said during the meeting. Meanwhile, a trial run of Egypt’s new Suez Canal channel was successful and “proves to the world that Egyptians are capable of achieving major projects,” a canal official was quoted as saying on Saturday. Suez Canal Authorities will hold a lottery to decide who will attend the opening ceremony of the New Suez Canal, the head of one of the companies responsible for promoting the Canal said on Sunday. [Ahram Online, Aswat Masriya, Reuters, Egypt Independent, 7/27/2015]  

Six sentenced to death in absentia over Ghad-al Thawra Party storming case
Six people were served death sentences on Sunday by a Cairo Court after being tried in absentia and convicted for several charges, including attempted murder. Other charges included use of force, endangering public safety and illegal possession of weapons, state-owned Al-Ahram reported. The defendants are Qasem Ashraf Qasem, Islam Hassan, Islam Abdel Hafez, Hussein Nassef, Marco Abdel Messih, and Hossam Mohamed. The case stems from the torching of the headquarters of the liberal opposition party in Cairo’s Downtown in February 2013. The incident allegedly came after party founder, Ayman Nour, said he wouldn’t mind taking up a leadership position if invited by then President Mohamed Morsi. Egyptian law provides a retrial for a person sentenced in absentia once he or she is in custody. [Ahram Online, Egypt Independent, Aswat Masriya, Mada Masr, 7/27/2015]

For more in-depth Egypt news, please visit EgyptSource

LIBYA & THE MAGHREB

Britain’s Cameron says ready to bomb militants in Libya and Syria if threat seen
British Prime Minister David Cameron said on Monday he was ready to order air strikes on Islamist militant targets in Libya and Syria to prevent attacks on the streets of Britain as he stepped up his rhetoric against Islamic State (ISIS or ISIL) insurgents. “If there is a threat to Britain or to our people on our streets…we are able to stop it by taking immediate action against that threat,” said Cameron. He added “as prime minister, I would always want to try and take that action…whether that problem is emanating from Libya or Syria or anywhere else.” Britain is taking part in US-led airstrikes on ISIS positions in Iraq. Cameron is seeking parliamentary backing later this year to extend the aerial campaign to Syria. However, before Monday he had not raised the prospect of bombing targets inside Libya. [Reuters, 7/27/2015]

Tuaregs and Tebus sign new Sebha truce
The Tuareg and Tebu communities signed a truce agreement that was brokered by local and northwestern tribes. Under the deal, all displaced residents in the Tiwari district will be allowed to return to their homes and all prisoners held by either side are to be released.  Anyone that breaches the agreement will be held accountable politically, financially, and morally by all the mediating parties. Negotiations are set to continue in an effort to bring about a final peace deal between the two sides. [Libya Herald, 7/25/2015]

HoR unlikely to endorse ambassadorial appointments; clashes over embassy in Dhaka
A list of new Libyan ambassadors to a number of countries produced last week is unlikely to be approved for some time, if at all, according to Libyan diplomats. The list, comprising thirteen new appointments, was published last week, although it is not clear how official it is. A Libyan diplomat explained that “all appointments must first be approved by the House of Representatives (HoR).” Meanwhile, the chargé d’affaires at the Libyan embassy in the Bangladeshi capital of Dhaka, Khaled Mohamed Abu Said, accused his predecessor, Mhamoud Sallabi, of hiring a group of Bangladeshis to break into the building to take it over. Abu Said alleged that Sallabi hired fifty men who broke into the building and attacked staff. He added that a team from the Bangladeshi Foreign Ministry would visit the embassy to talk investigate the matter. [Libya Herald, 7/25/2015]

Egyptians arrested trying to cross Libyan border
Seventy-one Egyptian nationals were arrested on Sunday for attempting to illegally cross into Libya through the Msaad-Salloum border crossing. The governorate of Marsa Matruh, which borders Libya, said it would coordinate more with Egyptian armed forces to try and prevent illegal crossings into Libya. Egyptian media also reported that hundreds more were arrested last week at the border. The crossing has been subject to regular closures and restrictions since 2011. Last week, authorities from Libya’s internationally recognized government in Tobruk said the border had reopened after a five-day closure, with limits on the number of people allowed to cross. [Libya Monitor (subscription), 7/27/2015]

Tunisia adopts new anti-terror law; Tunisian police kill one militant, arrest sixteen others
The Tunisian parliament adopted a new “anti-terror” law on Friday aimed at strengthening the state’s ability to confront a militant threat following deadly attacks claimed by the Islamic State (ISIS or ISIL). The law was adopted after three days of debate by 174 members of parliament, with ten abstentions and no votes against it. President of the Assembly Mohamed Ennaceur called the passing of the law a “historic” moment and said it would “reassure” the nation’s citizens. While the law was widely supported by both secular and Islamist parties, it was strongly criticized by civil society and NGOs. Former President Moncef Marzouki said in a speech that the bill represents a greater danger to rights and freedoms than terrorism itself. Critics called the law “flawed,” saying it flouts a number of international human rights norms Meanwhile, Tunisian authorities carried out a series of anti-militant raids in the northern province of Bizerte on Friday, killing one militant and arresting sixteen people. [AFP, Reuters, AP, 7/25/2015]

SYRIA & ITS NEIGHBORS

US and Turkey seek to create ‘safe zone’ in northern Syria
The United States and Turkey are finalizing plans for a military campaign to push the Islamic State (ISIS or ISIL) out of a strip of land along the Syrian-Turkish border. A US official said the “Islamic State free-zone” would ensure greater security and stability in the border region, but that joint military efforts with Turkey would not include the imposition of a no-fly zone, despite Turkish requests. Syria’s Kurdish People’s Protection Units (YPG) militia said that Turkish troops shelled Kurdish positions in the outskirts of the ISIS-held town of Jarabulus on Monday and urged Ankara to halt attacks on its forces. Turkey has also called for an emergency meeting with its NATO allies to discuss security threats and airstrikes. The allies are expected to meet on Tuesday. Turkish Prime Minister Ahmet Davutoglu said Monday that Turkey will not send ground troops into Syria. Turkish President Recep Tayyip Erdogan and Russian President Vladimir Putin spoke on the phone Sunday to discuss better cooperation between the two countries regarding conflicts in Syria and Iraq. Both sides stressed that all interested states should boost efforts to combat the spread of terrorism and extremism. [AP, Washington Post, NYT, 7/27/2015]

Assad admits manpower shortage, announces amnesty for army deserters
Syrian President Bashar al-Assad admitted in his first public address in over a year that his troops have lost territory to rebel forces and are running short on manpower. He vowed to win the civil war, but acknowledged that his generals have had to move forces from one front to another in order to protect areas that are militarily, politically, or economically more important. On Friday, insurgents intensified attacks on a major army and security area in southern Syria’s Deraa province. Assad also announced a decree on Saturday that will grant general amnesty to military deserters who violate the country’s compulsory military conscription law. The decree will lift legal penalties against thousands of army deserters both inside and outside of Syria. Syrian Foreign Minister Walid al-Moallem said at a conference against terrorism in Damascus on Friday that it is too early to hold another United Nations-backed peace conference on Syria, saying “going to Geneva 3 is premature unless the Syrians address their issues among themselves.” Meanwhile, on Sunday Pope Francis appealed for the release of an Italian Jesuit priest and two Orthodox bishops kidnapped in Syria two years ago. [AP, WSJ, 7/27/2015]

Syrian Kurds capture town of Sarrin from ISIS
The Kurdish People’s Protection Units (YPG) militia, assisted by US-led coalition airstrikes, captured the town of Sarrin from the Islamic State (ISIS or ISIL) in Syria’s northern Raqqa province on Monday. ISIS had used the town as a launchpad for raids on the Kurdish-held town of Kobani. Two bombs hit the Kurdish-majority city of Qamishli in northeastern Syria on Monday morning, wounding at least three people. The first bomb hit a patrol of Kurdish YPG fighters and the second appeared to have targeted Kurdish local security forces. ISIS militants also detonated explosive laden trucks in two villages near the Kurdish-controlled border town of Tal Abyad on Saturday. The attacks reportedly targeted Kurdish YPG checkpoints in two mainly Arab-inhabited villages on the southeastern edge of the town. [Reuters, 7/27/2015]

Turkish jets hit Kurdish militant positions in Iraq
Turkey attacked Kurdish insurgent camps in Iraq for a second night on Sunday. The strikes were launched from Diyarbakir air base in southeastern Turkey and hit Kurdistan Workers Party (PKK) targets in northern Iraq. The strikes came after a car bomb and roadside explosives hit a military vehicle in Diyarbakir Saturday night. Turkey launched airstrikes on Kurdish militant positions in Iraq on Friday for the first time in four years, putting an end to a two-year ceasefire between the Turkish government and the PKK, which Turkey considers a terrorist group. Turkish Prime Minister Ahmet Davutoglu said the bombs hit PKK targets including shelters, bunkers, and storage facilities, as well as PKK high command positions in the Qandil mountains. President of Iraq’s Kurdish Regional Government (KRG) Masoud Barzani condemned the attacks. [Reuters, 7/27/2015]

Iraqi forces clash with ISIS at Anbar University; bomb attacks at swimming pool kill at least 12
Iraq’s Joint Operations Command said in a statement that Iraqi security forces entered the University of Anbar in Ramadi on Sunday and clashed with Islamic State (ISIS or ISIL) militants inside the compound. A spokesman for Iraq’s counterterrorism forces said “the university represents a significant stronghold and a key command base used by top [ISIS] commanders to orchestrate all battles in other parts of Ramadi.” He added that Iraqi troops have managed to recapture most of the university buildings after launching a surprise offensive with support from US-led coalition airstrikes, and that government forces are seeking to separate the university from nearby districts in order to cut ISIS supply routes. Meanwhile, bomb attacks at a crowded swimming pool in the northern Iraqi town of Tuz Khurmatu on Saturday killed at least twelve people and left another forty-five wounded. Most of the victims were Shia Muslims from Iraq’s ethnic Turkmen minority. [Reuters, 7/26/2015]

YEMEN & THE GULF

Emergency ceasefire fails as Houthis continue military campaign
A new ceasefire in Yemen failed as clashes continued in the key areas of al-Lahj, Aden, and Taiz. The humanitarian truce, declared by the Saudi-led Arab coalition, was meant to begin on Sunday at 11:59 p.m. to allow for distribution of much needed aid supplies and fuel. Houthi leaders claimed that they were not informed of the ceasefire agreement by the United Nations. One prominent figure rejected the truce in a twitter statement. Fighting between the Houthis and Saudi-backed fighters intensified in the area surrounding the al-Anad air base, a critical military staging point for control of Aden. Meanwhile, in Sana’a, three civilians were killed in a bombing on Sunday. [Reuters, 7/27/2015]

UN planning to increase aid to Aden
The United Nations (UN) hopes to massively scale up aid to Aden now that fighting has all but stopped in the Yemeni port city, Johannes van der Klaauw, the UN official in charge of humanitarian aid to Yemen, said after a weekend trip to the city. Van der Klaauw said conditions were sufficient for the UN to move back with an international presence and government officials who fled Yemen in late March. Humanitarian conditions have deteriorated inside Yemen, with the few hospitals operating providing treatment only for trauma and not chronic diseases or maternity care. Van der Klaauw met Yemen’s ministers of public works and transport in Aden to discuss priorities for restoring normal life to the city, where a quarter of the 800,000 residents have been displaced. Apart from policing the peace, the first priorities are getting displaced people back to their homes, restoring water and sewage systems, electricity, public health and other basic services, and providing shelter to those who need it. [Reuters, 7/27/2015]

Bahrain says foils arms smuggling bid, recalls Iran envoy
Bahrain said on Saturday it had foiled an arms smuggling plot by two Bahrainis with ties to Iran and announced the recall of its ambassador to Tehran for consultations after what it said were repeated hostile Iranian statements. Bahrain made the announcements on the eve of a tour of some Arab states by Iranian Foreign Minister Mohammad Javad Zarif aimed at calming tensions following a historic nuclear deal between Tehran and world powers. Announcing the arrests, the ministry said the two suspects had admitted receiving the shipment of explosives, automatic weapons and ammunition from Iranian handlers outside Bahrain’s territorial waters. It added that one had received military training at a Revolutionary Guards camp in Iran in 2013. [Reuters, 7/25/2015]

ECONOMICS

Foreign investment in Arab states dropped 8 percent in 2014
Foreign direct investment (FDI) into Arab states dropped 8 percent in 2014 with the United Arab Emirates (UAE) and Saudi Arabia attracting close to half the total funds, a report by the Kuwait-based Arab Investment and Export Credit Guarantee Corporation says. Arab states attracted FDI worth $43.9 billion in 2014 compared with $47.5 billion the previous year, according to the report. The figure remains far below the $66.2 billion attracted in 2010. UAE topped the list of countries receiving FDI with $10.1 billion – 23 percent of the total – followed by Saudi Arabia with $8 billion. Egypt came third with $4.8 billion. FDI dropped in fifteen out of the twenty Arab League states the report covered. [AFP, 7/26/2015]

Saudi Arabia’s SABIC considering shale gas investments in US
Saudi Basic Industries Corporation (SABIC), the world’s second biggest chemicals manufacturer, plans to expand investment in US shale gas projects through joint ventures, according to acting Chief Executive Officer Yousef al-Benyan. “The main areas in the US we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labor laws and unions,” al-Benyan said. “At this point we are not looking to acquire any US companies.” SABIC said in April it plans to expand in China and the US because it is difficult for the company to grow in Saudi Arabia due to a shortage of gas. [Bloomberg, 7/26/2015]

Egypt allocates EGP 1 billion in state funds to develop slums
Egypt will allocate EGP 1 billion of its 2015/2016 budget to developing a number of urban slum areas, the planning ministry said in a statement on Saturday. The amount is part of EGP 6.85 billion in targeted investments for local development programs. Another EGP 650 million of the state’s budget for the fiscal year will be allocated to develop a number of the country’s most impoverished villages, which make up 9.5 percent of impoverished rural areas nationwide. In January, the Ministry of Urban Renewal and Informal Settlements launched a three year plan aimed at eradicating 258 urban slum areas. [Ahram Online, 7/25/2015]

IMF names eastern central bank governor as Libya contact
The International Monetary Fund (IMF) on Friday said it has recognized the central bank governor named by Libya’s internationally recognized government in Tobruk, Ali Salim al-Hibr, as its sole contact and ended ties with a rival bank chief in Tripoli. The move risks making it even harder for foreign states to foster cooperation between the warring administrations because the central bank in Tripoli controls the country’s vital oil revenues. An IMF spokeswoman who confirmed the decision to recognize al-Hibr said the move followed a request by the Tobruk House of Representatives to accept him as Libya’s sole delegate to the Fund. “In line with established Fund procedures, Mr. al-Hibri was recognized as Libya’s governor for the Fund,” she said. [Reuters, 7/24/2015]

EGYPT

Prime MInister extends North Sinai curfew for three months
Prime Minister Ibrahim Mahlab has extended for three months a curfew in North Sinai, according to a decree issued in the government’s official gazette on Saturday. The designated areas of the curfew include Rafah, al-Arish and Sheikh Zuweid cities, and surrounding areas. North Sinai residents responded, demanding the curfew be lifted, according to independent daily, Al-Masry al-Youm. Meanwhile, attacks in North Sinai continued over the weekend, and into the beginning of the week. An explosion in North Sinai’s Sheikh Zuweid town injured two military officers and a conscript late Friday, security sources said. A roadside bomb exploded early Sunday on a coastal road in al-Arish, injuring eighteen soldiers, security sources told Al-Ahram. Hospital officials confirmed the casualty figure and said none of those hurt had life-threatening wounds. The attack was claimed by Sinai State, an Islamist militant group formerly known as Ansar Bayt al-Maqdis, and an affiliate of the Islamic State. A conscript was also wounded in the arm on Sunday by a sniper while he was on duty at a checkpoint south of Rafah. A woman was killed and two children were injured when their house in North Sinai was hit by a shell from an unknown source on Sunday, medical sources said. The shell struck the house after clashes between security forces and militants, an eyewitness told Aswat Masriya. Unknown gunmen kidnapped a local man at gunpoint on Monday, taking him to an unknown destination. Eyewitnesses said the kidnapping could be attributed to the victim’s cooperation with security services. [Ahram Online, Reuters, SIS, DNE, Egypt Independent, 7/27/2015]

US-Egypt strategic dialogue delayed to August 2
Strategic US-Egyptian dialogue, which has long been in the pipeline, recently faced an apparently final postponement, as the Foreign Ministry announced the talks will be held on August 2. In a meeting between Foreign Minister Sameh Shoukry and foreign correspondents, Shoukry highlighted “the strength and importance of the continuing partnership between Egypt and the US,” according to a ministry statement. [DNE, Ahram Online, 7/27/2015]

New Suez Canal to bring fresh development projects to Egypt says Sisi
Egypt will witness the establishment of several development projects following the inauguration of the new Suez Canal August 6, according to a presidency statement quoting President Abdel-Fattah al-Sisi, following his meeting with French Defense Minister Jean-Yves Le Drian in Cairo on Saturday. The new national projects aim at compensating Egyptians in long-missed development, Sisi said during the meeting. Meanwhile, a trial run of Egypt’s new Suez Canal channel was successful and “proves to the world that Egyptians are capable of achieving major projects,” a canal official was quoted as saying on Saturday. Suez Canal Authorities will hold a lottery to decide who will attend the opening ceremony of the New Suez Canal, the head of one of the companies responsible for promoting the Canal said on Sunday. [Ahram Online, Aswat Masriya, Reuters, Egypt Independent, 7/27/2015]  

Six sentenced to death in absentia over Ghad-al Thawra Party storming case
Six people were served death sentences on Sunday by a Cairo Court after being tried in absentia and convicted for several charges, including attempted murder. Other charges included use of force, endangering public safety and illegal possession of weapons, state-owned Al-Ahram reported. The defendants are Qasem Ashraf Qasem, Islam Hassan, Islam Abdel Hafez, Hussein Nassef, Marco Abdel Messih, and Hossam Mohamed. The case stems from the torching of the headquarters of the liberal opposition party in Cairo’s Downtown in February 2013. The incident allegedly came after party founder, Ayman Nour, said he wouldn’t mind taking up a leadership position if invited by then President Mohamed Morsi. Egyptian law provides a retrial for a person sentenced in absentia once he or she is in custody. [Ahram Online, Egypt Independent, Aswat Masriya, Mada Masr, 7/27/2015]

For more in-depth Egypt news, please visit EgyptSource

LIBYA & THE MAGHREB

Britain’s Cameron says ready to bomb militants in Libya and Syria if threat seen
British Prime Minister David Cameron said on Monday he was ready to order air strikes on Islamist militant targets in Libya and Syria to prevent attacks on the streets of Britain as he stepped up his rhetoric against Islamic State (ISIS or ISIL) insurgents. “If there is a threat to Britain or to our people on our streets…we are able to stop it by taking immediate action against that threat,” said Cameron. He added “as prime minister, I would always want to try and take that action…whether that problem is emanating from Libya or Syria or anywhere else.” Britain is taking part in US-led airstrikes on ISIS positions in Iraq. Cameron is seeking parliamentary backing later this year to extend the aerial campaign to Syria. However, before Monday he had not raised the prospect of bombing targets inside Libya. [Reuters, 7/27/2015]

Tuaregs and Tebus sign new Sebha truce
The Tuareg and Tebu communities signed a truce agreement that was brokered by local and northwestern tribes. Under the deal, all displaced residents in the Tiwari district will be allowed to return to their homes and all prisoners held by either side are to be released.  Anyone that breaches the agreement will be held accountable politically, financially, and morally by all the mediating parties. Negotiations are set to continue in an effort to bring about a final peace deal between the two sides. [Libya Herald, 7/25/2015]

HoR unlikely to endorse ambassadorial appointments; clashes over embassy in Dhaka
A list of new Libyan ambassadors to a number of countries produced last week is unlikely to be approved for some time, if at all, according to Libyan diplomats. The list, comprising thirteen new appointments, was published last week, although it is not clear how official it is. A Libyan diplomat explained that “all appointments must first be approved by the House of Representatives (HoR).” Meanwhile, the chargé d’affaires at the Libyan embassy in the Bangladeshi capital of Dhaka, Khaled Mohamed Abu Said, accused his predecessor, Mhamoud Sallabi, of hiring a group of Bangladeshis to break into the building to take it over. Abu Said alleged that Sallabi hired fifty men who broke into the building and attacked staff. He added that a team from the Bangladeshi Foreign Ministry would visit the embassy to talk investigate the matter. [Libya Herald, 7/25/2015]

Egyptians arrested trying to cross Libyan border
Seventy-one Egyptian nationals were arrested on Sunday for attempting to illegally cross into Libya through the Msaad-Salloum border crossing. The governorate of Marsa Matruh, which borders Libya, said it would coordinate more with Egyptian armed forces to try and prevent illegal crossings into Libya. Egyptian media also reported that hundreds more were arrested last week at the border. The crossing has been subject to regular closures and restrictions since 2011. Last week, authorities from Libya’s internationally recognized government in Tobruk said the border had reopened after a five-day closure, with limits on the number of people allowed to cross. [Libya Monitor (subscription), 7/27/2015]

Tunisia adopts new anti-terror law; Tunisian police kill one militant, arrest sixteen others
The Tunisian parliament adopted a new “anti-terror” law on Friday aimed at strengthening the state’s ability to confront a militant threat following deadly attacks claimed by the Islamic State (ISIS or ISIL). The law was adopted after three days of debate by 174 members of parliament, with ten abstentions and no votes against it. President of the Assembly Mohamed Ennaceur called the passing of the law a “historic” moment and said it would “reassure” the nation’s citizens. While the law was widely supported by both secular and Islamist parties, it was strongly criticized by civil society and NGOs. Former President Moncef Marzouki said in a speech that the bill represents a greater danger to rights and freedoms than terrorism itself. Critics called the law flawed,” saying it flouts a number of international human rights norms Meanwhile, Tunisian authorities carried out a series of anti-militant raids in the northern province of Bizerte on Friday, killing one militant and arresting sixteen people. [AFP, Reuters, AP, 7/25/2015]

SYRIA & ITS NEIGHBORS

US and Turkey seek to create ‘safe zone’ in northern Syria
The United States and Turkey are finalizing plans for a military campaign to push the Islamic State (ISIS or ISIL) out of a strip of land along the Syrian-Turkish border. A US official said the “Islamic State free-zone” would ensure greater security and stability in the border region, but that joint military efforts with Turkey would not include the imposition of a no-fly zone, despite Turkish requests. Syria’s Kurdish People’s Protection Units (YPG) militia said that Turkish troops shelled Kurdish positions in the outskirts of the ISIS-held town of Jarabulus on Monday and urged Ankara to halt attacks on its forces. Turkey has also called for an emergency meeting with its NATO allies to discuss security threats and airstrikes. The allies are expected to meet on Tuesday. Turkish Prime Minister Ahmet Davutoglu said Monday that Turkey will not send ground troops into Syria. Turkish President Recep Tayyip Erdogan and Russian President Vladimir Putin spoke on the phone Sunday to discuss better cooperation between the two countries regarding conflicts in Syria and Iraq. Both sides stressed that all interested states should boost efforts to combat the spread of terrorism and extremism. [AP, Washington Post, NYT, 7/27/2015]

Assad admits manpower shortage, announces amnesty for army deserters
Syrian President Bashar al-Assad admitted in his first public address in over a year that his troops have lost territory to rebel forces and are running short on manpower. He vowed to win the civil war, but acknowledged that his generals have had to move forces from one front to another in order to protect areas that are militarily, politically, or economically more important. On Friday, insurgents intensified attacks on a major army and security area in southern Syria’s Deraa province. Assad also announced a decree on Saturday that will grant general amnesty to military deserters who violate the country’s compulsory military conscription law. The decree will lift legal penalties against thousands of army deserters both inside and outside of Syria. Syrian Foreign Minister Walid al-Moallem said at a conference against terrorism in Damascus on Friday that it is too early to hold another United Nations-backed peace conference on Syria, saying “going to Geneva 3 is premature unless the Syrians address their issues among themselves.” Meanwhile, on Sunday Pope Francis appealed for the release of an Italian Jesuit priest and two Orthodox bishops kidnapped in Syria two years ago. [AP, WSJ, 7/27/2015]

Syrian Kurds capture town of Sarrin from ISIS
The Kurdish People’s Protection Units (YPG) militia, assisted by US-led coalition airstrikes, captured the town of Sarrin from the Islamic State (ISIS or ISIL) in Syria’s northern Raqqa province on Monday. ISIS had used the town as a launchpad for raids on the Kurdish-held town of Kobani. Two bombs hit the Kurdish-majority city of Qamishli in northeastern Syria on Monday morning, wounding at least three people. The first bomb hit a patrol of Kurdish YPG fighters and the second appeared to have targeted Kurdish local security forces. ISIS militants also detonated explosive laden trucks in two villages near the Kurdish-controlled border town of Tal Abyad on Saturday. The attacks reportedly targeted Kurdish YPG checkpoints in two mainly Arab-inhabited villages on the southeastern edge of the town. [Reuters, 7/27/2015]

Turkish jets hit Kurdish militant positions in Iraq
Turkey attacked Kurdish insurgent camps in Iraq for a second night on Sunday. The strikes were launched from Diyarbakir air base in southeastern Turkey and hit Kurdistan Workers Party (PKK) targets in northern Iraq. The strikes came after a car bomb and roadside explosives hit a military vehicle in Diyarbakir Saturday night. Turkey launched airstrikes on Kurdish militant positions in Iraq on Friday for the first time in four years, putting an end to a two-year ceasefire between the Turkish government and the PKK, which Turkey considers a terrorist group. Turkish Prime Minister Ahmet Davutoglu said the bombs hit PKK targets including shelters, bunkers, and storage facilities, as well as PKK high command positions in the Qandil mountains. President of Iraq’s Kurdish Regional Government (KRG) Masoud Barzani condemned the attacks. [Reuters, 7/27/2015]

Iraqi forces clash with ISIS at Anbar University; bomb attacks at swimming pool kill at least 12
Iraq’s Joint Operations Command said in a statement that Iraqi security forces entered the University of Anbar in Ramadi on Sunday and clashed with Islamic State (ISIS or ISIL) militants inside the compound. A spokesman for Iraq’s counterterrorism forces said “the university represents a significant stronghold and a key command base used by top [ISIS] commanders to orchestrate all battles in other parts of Ramadi.” He added that Iraqi troops have managed to recapture most of the university buildings after launching a surprise offensive with support from US-led coalition airstrikes, and that government forces are seeking to separate the university from nearby districts in order to cut ISIS supply routes. Meanwhile, bomb attacks at a crowded swimming pool in the northern Iraqi town of Tuz Khurmatu on Saturday killed at least twelve people and left another forty-five wounded. Most of the victims were Shia Muslims from Iraq’s ethnic Turkmen minority. [Reuters, 7/26/2015]

YEMEN & THE GULF

Emergency ceasefire fails as Houthis continue military campaign
A new ceasefire in Yemen failed as clashes continued in the key areas of al-Lahj, Aden, and Taiz. The humanitarian truce, declared by the Saudi-led Arab coalition, was meant to begin on Sunday at 11:59 p.m. to allow for distribution of much needed aid supplies and fuel. Houthi leaders claimed that they were not informed of the ceasefire agreement by the United Nations. One prominent figure rejected the truce in a twitter statement. Fighting between the Houthis and Saudi-backed fighters intensified in the area surrounding the al-Anad air base, a critical military staging point for control of Aden. Meanwhile, in Sana’a, three civilians were killed in a bombing on Sunday. [Reuters, 7/27/2015]

UN planning to increase aid to Aden
The United Nations (UN) hopes to massively scale up aid to Aden now that fighting has all but stopped in the Yemeni port city, Johannes van der Klaauw, the UN official in charge of humanitarian aid to Yemen, said after a weekend trip to the city. Van der Klaauw said conditions were sufficient for the UN to move back with an international presence and government officials who fled Yemen in late March. Humanitarian conditions have deteriorated inside Yemen, with the few hospitals operating providing treatment only for trauma and not chronic diseases or maternity care. Van der Klaauw met Yemen’s ministers of public works and transport in Aden to discuss priorities for restoring normal life to the city, where a quarter of the 800,000 residents have been displaced. Apart from policing the peace, the first priorities are getting displaced people back to their homes, restoring water and sewage systems, electricity, public health and other basic services, and providing shelter to those who need it. [Reuters, 7/27/2015]

Bahrain says foils arms smuggling bid, recalls Iran envoy
Bahrain said on Saturday it had foiled an arms smuggling plot by two Bahrainis with ties to Iran and announced the recall of its ambassador to Tehran for consultations after what it said were repeated hostile Iranian statements. Bahrain made the announcements on the eve of a tour of some Arab states by Iranian Foreign Minister Mohammad Javad Zarif aimed at calming tensions following a historic nuclear deal between Tehran and world powers. Announcing the arrests, the ministry said the two suspects had admitted receiving the shipment of explosives, automatic weapons and ammunition from Iranian handlers outside Bahrain’s territorial waters. It added that one had received military training at a Revolutionary Guards camp in Iran in 2013. [Reuters, 7/25/2015]

ECONOMICS

Foreign investment in Arab states dropped 8 percent in 2014
Foreign direct investment (FDI) into Arab states dropped 8 percent in 2014 with the United Arab Emirates (UAE) and Saudi Arabia attracting close to half the total funds, a report by the Kuwait-based Arab Investment and Export Credit Guarantee Corporation says. Arab states attracted FDI worth $43.9 billion in 2014 compared with $47.5 billion the previous year, according to the report. The figure remains far below the $66.2 billion attracted in 2010. UAE topped the list of countries receiving FDI with $10.1 billion – 23 percent of the total – followed by Saudi Arabia with $8 billion. Egypt came third with $4.8 billion. FDI dropped in fifteen out of the twenty Arab League states the report covered. [AFP, 7/26/2015]

Saudi Arabia’s SABIC considering shale gas investments in US
Saudi Basic Industries Corporation (SABIC), the world’s second biggest chemicals manufacturer, plans to expand investment in US shale gas projects through joint ventures, according to acting Chief Executive Officer Yousef al-Benyan. “The main areas in the US we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labor laws and unions,” al-Benyan said. “At this point we are not looking to acquire any US companies.” SABIC said in April it plans to expand in China and the US because it is difficult for the company to grow in Saudi Arabia due to a shortage of gas. [Bloomberg, 7/26/2015]

Egypt allocates EGP 1 billion in state funds to develop slums
Egypt will allocate EGP 1 billion of its 2015/2016 budget to developing a number of urban slum areas, the planning ministry said in a statement on Saturday. The amount is part of EGP 6.85 billion in targeted investments for local development programs. Another EGP 650 million of the state’s budget for the fiscal year will be allocated to develop a number of the country’s most impoverished villages, which make up 9.5 percent of impoverished rural areas nationwide. In January, the Ministry of Urban Renewal and Informal Settlements launched a three year plan aimed at eradicating 258 urban slum areas. [Ahram Online, 7/25/2015]

IMF names eastern central bank governor as Libya contact
The International Monetary Fund (IMF) on Friday said it has recognized the central bank governor named by Libya’s internationally recognized government in Tobruk, Ali Salim al-Hibr, as its sole contact and ended ties with a rival bank chief in Tripoli. The move risks making it even harder for foreign states to foster cooperation between the warring administrations because the central bank in Tripoli controls the country’s vital oil revenues. An IMF spokeswoman who confirmed the decision to recognize al-Hibr said the move followed a request by the Tobruk House of Representatives to accept him as Libya’s sole delegate to the Fund. “In line with established Fund procedures, Mr. al-Hibri was recognized as Libya’s governor for the Fund,” she said. [Reuters, 7/24/2015]