CAIRO — The  Egyptian-brokered reconciliation deal between Fatah and Hamas signed on Oct. 12 could have major economic repercussions for Cairo. The agreement comes after a 10-year-long dispute against the backdrop of Hamas' takeover of the Gaza Strip following its victory in the 2006 legislative elections with 76 out of 132 seats and infighting with Fatah in 2007.

The reconciliation has so far generated positive opinions and forecasts by economic experts anticipating a boost in both Palestine's and Egypt’s national economies. They argue that stability in the Gaza Strip would promote economic recovery and reconstruction, and in light of the low business costs with the adjacent enclave, Egyptian businessmen and companies are most likely to be one of the main stakeholders.

Others downplay the effects of reconciliation on the economy and the flow of goods and people through the Rafah crossing, which remain subject to security controls within the scope of the Egyptian war on terrorism.

Abu Bakr al-Deeb, an Egyptian journalist specializing in economic and Arab affairs, told Al-Monitor, “The Palestinian reconciliation means a stable government that controls all sectors in Gaza. This implies a broad reconstruction process in which the cost component is key. Given that Egypt is adjacent to the Gaza Strip, it would incur the lowest costs if it takes part in this reconstruction process. This is not to mention Egypt’s political and security influence as the reconciliation sponsor.”