Gold prices fall in Saudi Arabia as global rates decline

Cairo's decision to authorize military aid for Saudi Arabia in response to Houthi attacks could alter the regional conflict dynamics, potentially involving major powers like Pakistan and Turkey. Egypt's substantial military capabilities and involvement in the Saudi-led coalition against the Houthis in 2015 position it to contribute air, naval, and air-defence support to defend Saudi territory and borders.

However, the scope of Egypt's mission remains unclear, with an opposition party seeking details on objectives, duration, and risks.

Egypt's top military body supports the request, yet questions linger over the mission's specifics. H.A. Hellyer, a senior associate fellow at the Royal United Services Institute, suggests that Saudi Arabia may primarily seek political support and symbolic presence from Egypt. Pakistan and Turkey, members of the Mecca Joint Defence Agreement with Saudi Arabia, could enhance Saudi Arabia's defensive capabilities through military training, advisory cooperation, air-defence expertise, and electronic warfare capabilities.

Their assistance could improve Saudi Arabia's ability to detect and intercept Houthi missiles and drones, increasing pressure on the militia.

Egypt's involvement in regional security efforts, though not a formal member of the Mecca pact, aligns with its economic interests. Houthi attacks on Saudi Arabia threaten Egypt's Suez Canal revenues and remittances from Egyptians working in the kingdom. Protecting Saudi Arabia also safeguards Egypt's largest expatriate community, with remittances surpassing Suez Canal revenues.

Egypt's diplomatic engagement with Iran remains ongoing, aiming for a negotiated settlement to prevent further escalation. The key question is whether a collective defense approach can deter Houthi attacks without triggering a broader conflict involving Iran, the United States, and Israel.