Western Brands Face The Heat In Arab Countries As Boycott Waves Gain Momentum Amidst Gaza War

Boycott campaigns targeting Western brands in several Arab countries have gained momentum. In Cairo, McDonald’s and other Western fast-food chains are experiencing a decline in business. 

The movement stems from a grassroots boycott campaign sparked by Israel’s military offensive in Gaza since the Hamas attack in southern Israel on Oct. 7.

The impact is evident in Egypt and Jordan, with signs of the campaign spreading to other Arab countries like Kuwait and Morocco. However, participation in Saudi Arabia and the United Arab Emirates has seen only minor effects. 

The targeted companies are perceived to have taken pro-Israeli stances or have alleged financial ties to Israel. As the boycott gains traction, social media-driven calls are expanding to include numerous companies and products, encouraging consumers to opt for local alternatives. 

Mass Boycott

In Egypt, where security measures constrain street protests, the boycott is being viewed as a significant means for citizens to express their opposition to the conflict.

Individuals, like 31-year-old Cairo resident Reham Hamed, participating in the boycott express a sense of moral responsibility, even if they acknowledge its limited impact on the war. 

In Jordan, pro-boycott residents actively encourage others to shift their business away from McDonald’s and Starbucks; videos circulating on social media show apparent Israeli troops using well-known detergent brands, urging viewers to boycott these products.

Boycott-related emptiness is observed in Kuwait City, where a tour of seven branches of Starbucks, McDonald’s, and KFC found them nearly empty. Similarly, in Rabat, the capital of Morocco, a worker at a Starbucks branch noted a significant drop in customers this week.

Responding to the boycott, McDonald’s Corp expressed dismay over disinformation regarding its position on the conflict and emphasized its Egyptian ownership, pledging aid to Gaza. Starbucks, in a statement, asserted its non-political stance and dispelled rumors of supporting the Israeli government or army.

The boycott campaigns have gained unprecedented momentum in countries with traditionally strong pro-Palestinian sentiment. The scale of Israel’s military operation in Gaza, causing a humanitarian crisis and a substantial number of civilian casualties, has fueled anger and widespread reactions.

Previous boycott campaigns in Egypt had less impact, but the severity of the current situation has led to an unprecedented response, according to Hossam Mahmoud, a member of BDS Egypt. Some campaigners have targeted Starbucks for legal actions against its workers’ union over the Israel-Hamas conflict and McDonald’s for providing free meals to Israeli military personnel.

An anonymous employee at McDonald’s corporate offices in Egypt reported a significant sales decline of at least 70% in October and November compared to the same months last year, struggling to cover expenses during this period. Sameh El Sadat, an Egyptian politician, and co-founder of TBS Holding noted a drop or slowdown of about 50% in demand from his clients.

Despite targeted brands’ efforts to defend themselves and offer special promotions, boycott campaigns continue to gain traction, even reaching outside the Arab world. 

In Malaysia, a McDonald’s branch in Putrajaya reported about 20% fewer customers, while Grab faced calls for a boycott after the chief executive’s wife expressed admiration for Israel.

Turkey’s parliament recently removed Coca-Cola and Nestle products from its restaurants in response to public outcry, although major Turkish companies or state agencies have not severed ties with Israel. 

The uptake of boycotts varies, with no significant impact observed in some countries, including Saudi Arabia, the United Arab Emirates, and Tunisia. Some remain skeptical about the effectiveness of boycotts, suggesting more direct forms of support for Palestinians.

Companies’ Responses

As these boycott campaigns gain momentum, targeted companies are compelled to respond to the growing public sentiment. 

McDonald’s Corp, for instance, expressed dismay over disinformation regarding its position on the conflict. The corporation emphasized its Egyptian ownership and pledged 20 million Egyptian pounds ($650,000) in aid to Gaza. 

Likewise, Starbucks, in response to the boycott calls, referred to a statement on its website, asserting its non-political stance and dismissing rumors of support for the Israeli government or army. Despite reporting record revenues for the fourth quarter, Starbucks remained tight-lipped about its business amid the ongoing boycott.

Other Western companies have been notably silent, with no immediate responses to requests for comments; the silence raises questions about how these companies plan to navigate the challenges posed by the boycott campaigns and whether they will take concrete steps to address the concerns raised by consumers in the Arab world.

This evolving dynamic between the boycotters and the boycotted has added dillema to the ongoing narrative, shaping the trajectory of these campaigns and their potential impact on Western brands operating in the Arab region.

Hostage Release Delayed

Meanwhile, in the Israel-Hamas conflict, hopes for the imminent release of hostages under a temporary truce have been dashed, with both Israel’s national security adviser and the U.S. confirming that the release will not occur before Friday. 

This development comes on the heels of an agreement between Israel and Palestinian Hamas militants to institute a ceasefire in Gaza for a minimum of four days. 

The truce aims to facilitate the entry of humanitarian aid and the release of at least 50 hostages held by Hamas, reciprocated by the release of at least 150 Palestinians incarcerated in Israel.

Truce Terms and Ambiguous Commencement

Despite the agreement, the starting time for the truce and the subsequent release of hostages remains shrouded in ambiguity. An Egyptian security source proposed a potential start time of 10 a.m. (0800 GMT) on Thursday, while Qatar’s foreign ministry spokesperson hinted at an imminent announcement regarding the truce’s commencement. 

However, both Israel’s national security adviser, Tzachi Hanegbi, and the White House spokesperson, Adrienne Watson, emphasized that the release would adhere to the original agreement and not take place before Friday; this delay, reportedly due to finalizing logistical details, underscores the intricacies of implementing such agreements in the midst of an ongoing conflict.

Continued Fighting Despite Truce

Contrary to the expectations of a halt in hostilities with the truce announcement, reports indicated that fighting persisted in Gaza on Thursday. 

Palestinian media reported Israeli airstrikes and artillery strikes in various areas, including Gaza’s southern city of Khan Younis, resulting in casualties. 

Israel, for its part, asserted that its forces carried out aerial strikes on over 300 Hamas targets in the past day; thus, the conflicting reports highlight the challenges of enforcing a ceasefire in a region mired in long-standing animosities.

Implications for the Hostage Release

The delay in the release of hostages adds more uncertainty to an already tense situation. Israel’s justice ministry has published a list of 300 names of Palestinian prisoners who could potentially be freed in the coming days. 

However, the agreed-upon release rate of at least 10 hostages daily over four days poses logistical challenges and raises questions about the feasibility of implementing this plan amidst the ongoing conflict.

International Reactions and Humanitarian Concerns

The truce agreement, the first in the nearly seven-week-long conflict, has drawn attention from governments worldwide as a potential easing of civilian suffering in the Gaza Strip. 

The U.S. and Qatar, both involved in mediating the agreement, are closely monitoring the situation. Humanitarian concerns persist, with the United Nations children’s agency UNICEF declaring Gaza as the “most dangerous place in the world to be a child.” 

The Last Bit, As the Israel-Hamas conflict enters a new phase with the introduction of a truce, the delayed release of hostages stresses the complex challenges in implementing agreements amidst ongoing hostilities. 

The responses of businesses and the international community, coupled with the unpredictable dynamics on the ground, have taken a highly complicated twist, with Western brands facing the heat as they try to balance the interests on all sides.