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{{Short description|none}} {{Use dmy dates|date=December 2021}} {{Infobox economy | country = Egypt | image = Central business district of Egypt (CPD) 06.jpg | image_size = 310px | caption = The business district of Egypt's new administrative capital | currency = [[Egyptian pound]] (ISO code: EGP, abbreviation: LE) | fixed exchange = | year = 1 July – 30 June | organs = [[African Continental Free Trade Agreement|AfCFTA]], [[African Union]], [[Common Market for Eastern and Southern Africa|COMESA]], [[Council of Arab Economic Unity|CAEU]], [[World Trade Organization|WTO]], [[BRICS]] | group = [[Developing country|Developing/emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref> * Lower-middle income economy<ref>{{cite web | title= World Bank country classifications by income level for 2024-2025| website= World Bank | url= https://blogs.worldbank.org/en/opendata/world-bank-country-classifications-by-income-level-for-2024-2025 | access-date= December 18, 2024}}</ref> | population = {{IncreaseNeutral}} 109,450,000 (2025)<ref name="IMFAPR2025">{{cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Publications/WEO/weo-database/2025/april/weo-report?c=469,&s=NGDP_R,NGDP_RPCH,NGDP,NGDPD,PPPGDP,NGDP_D,NGDPRPC,NGDPRPPPPC,NGDPPC,NGDPDPC,PPPPC,PPPSH,PPPEX,NID_NGDP,NGSD_NGDP,PCPI,PCPIPCH,PCPIE,PCPIEPCH,TM_RPCH,TMG_RPCH,TX_RPCH,TXG_RPCH,LUR,LP,GGR,GGR_NGDP,GGX,GGX_NGDP,GGXCNL,GGXCNL_NGDP,GGSB,GGSB_NPGDP,GGXONLB,GGXONLB_NGDP,GGXWDN,GGXWDN_NGDP,GGXWDG,GGXWDG_NGDP,NGDP_FY,BCA,BCA_NGDPD,&sy=2025&ey=2025&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |website=IMF |access-date=3 May 2025 |language=en}}</ref> | gdp = * {{decrease}} $347.34 billion (nominal, 2025)<ref name="IMFAPR2025" /> * {{increase}} $2.37 trillion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFAPR2025" /> | gdp rank = {{plainlist| * [[List of countries by GDP (nominal)|41st (nominal; 2025)]] * [[List of countries by GDP (PPP)|17th (PPP; 2025)]] }} | growth = {{plainlist| * {{increase}} 3.8% (2025 est.)<ref name="IMFAPR2025" />}} | per capita = {{plainlist| * {{decrease}} $3,174 (nominal, 2025 est.)<ref name="IMFAPR2025" /> * {{increase}} $21,668 (PPP, 2025 est.)<ref name="IMFAPR2025" />}} | per capita rank = {{plainlist| * [[List of countries by GDP per capita (nominal)|133rd (nominal; 2025)]] * [[List of countries by GDP per capita (PPP)|87th (PPP; 2025)]]}} | sectors = {{plainlist| * [[Primary sector of the economy|Agriculture]]: 10.6% * [[Secondary sector of the economy|Industry]]: 32.7% * [[Tertiary sector of the economy|Services]]: 51.6% * (2023 est.)<ref name="CIAWFEG">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/egypt/|title=The World Factbook|publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=6 April 2024}}</ref>}} | components = {{plainlist| * Household consumption: 82.6% * Government consumption: 6.8% * Investment in fixed capital: 15.2% * Investment in inventories: -2.3% * Exports of goods and services: 19.2% * Imports of goods and services: -21.3% * (2023 est.)<ref name="CIAWFEG"/>}} | inflation = {{plainlist| * 20% (2025)<ref name="IMFAPR2025" />}} | Bankrate = | poverty = {{plainlist| * {{decreasepositive}} Extreme poverty: 4.5% (2019)<ref name="CAPMAS">{{cite web |title=Poverty rate in Egypt |url=https://www.sis.gov.eg/Story/159611/CAPMAS-Poverty-rates-in-Egypt-declined-to-29.7%25-within-year?lang=en-us}}</ref> * {{decreasepositive}} At $3.65/day: 18% (2019)<ref>{{cite web |title=Poverty headcount ratio at $3.65 a day (2017 PPP) |url=https://data.worldbank.org/indicator/SI.POV.LMIC?locations=EG}}</ref> * {{decreasepositive}} National poverty line: 29.7% (2021)}}<ref name="CAPMAS"/> | gini = 31.9 {{color|darkorange|medium}} (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=EG |title=Gini index - Egypt, Arab Rep. |publisher=World Bank}}</ref> | hdi = {{plainlist| * {{increase}} 0.754 {{color|green|high}} (2025)<ref name="2022 components3">{{cite book |url=https://hdr.undp.org/content/human-development-report-2025 |title=Human Development Report 2025 - A matter of choice: People and possibilities in the age of AI |date=6 May 2025 |publisher=United Nations Development Programme |isbn= |publication-date=6 May 2025 |pages= |access-date=6 May 2025 |archive-url=https://web.archive.org/web/20250506064128/https://hdr.undp.org/content/human-development-report-2025 |archive-date=6 May 2025}}</ref> ([[List of countries by Human Development Index|100th]]) * {{increase}} 0.582 {{color|darkorange|medium}} [[List of countries by inequality-adjusted HDI|IHDI]] (2025)<ref name="2022 components3"/> ([[List of countries by inequality-adjusted Human Development Index|98th]])}} | labor = {{plainlist| * {{increasePositive}} 33.75 million (2024)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=EG |title=Labor force, total – Egypt |publisher=World Bank |access-date=21 April 2025}}</ref> * {{increasePositive}} 45.5% labor force participation rate (2024)<ref>{{cite web |title=Egypt Labour Force Participation Rate |url=https://www.ceicdata.com/en/egypt/labour-force-participation-rate |website=CEIC Data |access-date=21 April 2025}}</ref> }} | cpi = {{increase}} 35 out of 100 points (2023, [[Corruption Perceptions Index|108th rank]]) | occupations = {{plainlist| * [[Primary sector of the economy|Agriculture]]: 18.66% * [[Secondary sector of the economy|Industry]]: 26.36% * [[Tertiary sector of the economy|Services]]: 52.98% * (2022 est.)<ref name=participation>{{cite web |title=Egypt: Employment by sector 2023 |url=https://www.statista.com/statistics/1202902/employment-by-sector-in-egypt/ |website=Statista |access-date=21 April 2025}}</ref>}} | unemployment = {{plainlist| * {{DecreasePositive}} 6.3% (Q1 2025)<ref>{{cite web |title=Egypt’s Unemployment Drops to 6.3 Percent in Q1 2025 Amid Labor Market Shifts |url=https://www.egypttoday.com/Article/3/140238/Egypt%E2%80%99s-Unemployment-Drops-to-6-3-Percent-in-Q1-2025 |website=EgyptToday |access-date=18 May 2025 |date=18 May 2025}}</ref> * {{DecreasePositive}} 18.8% youth unemployment (2024; 15 to 24 year-olds)<ref>{{cite web |title=Youth unemployment rate (%), ages 15–24 |url=https://humancapital.worldbank.org/en/indicator/WB_HCP_UNE_2EAP_MF_Y |website=Human Capital Data Portal |publisher=World Bank |access-date=21 April 2025}}</ref> * {{increaseNegative}} 2.445 million unemployed (2024)<ref>{{cite web |title=Number of unemployed people in Egypt 2014–2024 |url=https://www.statista.com/statistics/1297074/number-of-unemployed-people-in-egypt/ |website=Statista |access-date=21 April 2025}}</ref> }} | average gross salary = | gross median = | average net salary = | net median = | industries = textiles, food processing, tourism, [[chemical]]s, [[pharmaceuticals]], [[hydrocarbons]], construction, cement, metals, light manufactures | edbr = {{increase}} [[Ease of doing business index#Ranking|114th (medium, 2020)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/egypt |title=Ease of Doing Business in Egypt, Arab Rep |publisher=Doingbusiness.org |access-date=26 August 2018 }}</ref> | exports = {{increase}} $51.1 billion (2023)<ref name="OEC2023">{{cite web |title=Egypt (EGY) Exports, Imports, and Trade Partners {{!}} OEC |url=https://oec.world/en/profile/country/egy?yearSelector1=2023|website=OEC - The Observatory of Economic Complexity |access-date=27 February 2025 |language=en}}</ref> | export-goods = Oil, natural gas, and refined petroleum products, fertilizers and other chemical products, metals and building materials, vegetables and foodstuffs, textiles, gold, electrical equipment and electronics. <ref name="OEC2023" /> | export-partners = {{plainlist| * {{flag|European Union}} 31.7% * {{flag|Turkey}} 7.9% * {{flag|United States}} 6% * {{flag|India}} 4.8% * {{flag|United Arab Emirates}} 4.4% * (2022)<ref>{{cite web |title=Where does Egypt export to? (2022) |url=https://oec.world/en/visualize/tree_map/hs92/export/egy/show/all/2022 |publisher=[[The Observatory of Economic Complexity]] |access-date=26 January 2025 |archive-date=26 January 2025 |archive-url=https://archive.today/20250126194138/https://oec.world/en/visualize/tree_map/hs92/export/egy/show/all/2022 |url-status=live }}</ref>}} | imports = {{decrease}} $88.2 billion (2023)<ref name="OEC2023" /> | import-goods = Oil, natural gas, and refined petroleum products, machines, raw ores and metals, pharmaceutical and chemical products, wheat and maize, cars and plastic polymers. <ref name="OEC2023" /> | import-partners = {{plainlist| * {{flag|European Union}} 23.1% * {{flag|China}} 17.4% * {{flag|United States}} 6.9% * {{flag|Saudi Arabia}} 6.7% * {{flag|United Arab Emirates}} 5.8% *(2022)<ref>{{cite web |title=Where does Egypt import from? (2022) |url=https://oec.world/en/visualize/tree_map/hs92/import/egy/show/all/2022 |publisher=[[The Observatory of Economic Complexity]] |access-date=26 January 2025 |archive-date=26 January 2025 |archive-url=https://archive.today/20250126194137/https://oec.world/en/visualize/tree_map/hs92/import/egy/show/all/2022 |url-status=live }}</ref>}} | FDI = {{increasePositive}} $46.1 billion (2024)<ref>{{cite news |title=Investment Minister: $46.1B Egypt's foreign direct investments in 2024 |url=https://www.sis.gov.eg/Story/204462/Investment-Minister-%2446.1B-Egypt%27s-foreign-direct-investments-in-2024?lang=en-us |website=State Information Service |date=2024-12-15 |access-date=2025-04-21}}</ref> | current account = -5.8% of GDP (2025)<ref name="IMFAPR2025" /> | gross external debt = {{increaseNegative}}$155.2 billion (2024)<ref>{{cite news |title=Egypt’s external debt hits $155.2bln in Q1 FY2024/25 |url=https://www.zawya.com/en/economy/north-africa/egypts-external-debt-hits-1552bln-in-q1-fy2024-25-b1vwxls7 |work=Zawya |date=2025-02-12 |access-date=2025-04-21}}</ref> | NIIP = | debt = {{decreasePositive}}87% of GDP (2025))<ref name="IMFAPR2025" /> | balance = −$41.80 billion (2025)<ref name="IMFAPR2025" /> | revenue = {{increasePositive}}$57.63 billion (2025)<ref name="IMFAPR2025" /> | expenses = {{increaseNegative}}$99.43 billion (2025)<ref name="IMFAPR2025" /> | aid = | reserves = {{increase}} $48.14 billion (April 2025)<ref name="Foreign Reserves">{{cite web |title=Egypt’s Foreign Reserves Continue Upward Trend Reaching $48.14 Billion in April |url=https://www.egypttoday.com/Article/3/139988/Egypt%E2%80%99s-Foreign-Reserves-Continue-Upward-Trend-Reaching-48-14-Billion |website=EgyptToday |access-date=8 May 2025 |date=7 May 2025}}</ref> | credit = {{plainlist| * [[Standard & Poor's]]:<ref>{{cite news |title=Standard & Poor's keeps Egypt's credit rating at B/B with stable outlook |url=https://www.egypttoday.com/Article/3/102728/Standard-Poor-s-keeps-Egypt-s-credit-rating-at-B |access-date=8 February 2022 |work=EgyptToday |publisher=Egyptian Media Group |date=9 May 2021}}</ref> * B * Outlook: Stable ---- * [[Moody's Investors Service|Moody's]]:<ref>{{Cite web|url=https://www.moodys.com/research/Moodys-affirms-Egypts-B2-rating-maintains-stable-outlook--PR_451485|title=Rating Action: Moody's affirms Egypt's B2 rating, maintains stable outlook|website=moodys.com|access-date=14 December 2021|archive-url=https://web.archive.org/web/20211214174506/http://www.moodys.com/research/Moodys-affirms-Egypts-B2-rating-maintains-stable-outlook--PR_451485|archive-date=14 December 2021|url-status=dead|df=dmy-all}}</ref> * B3 * Outlook: Stable ---- * [[Fitch Group|Fitch]]:<ref>{{Cite web|url=https://www.fitchratings.com/research/sovereigns/fitch-affirms-egypt-at-b-outlook-stable-20-10-2021|title=Fitch Affirms Egypt at 'B+'; Outlook Stable|website=fitchratings.com|access-date=14 December 2021|archive-url=https://web.archive.org/web/20211026105241/https://www.fitchratings.com/research/sovereigns/fitch-affirms-egypt-at-b-outlook-stable-20-10-2021|archive-date=26 October 2021|url-status=dead|df=dmy-all}}</ref> * B+ * Outlook: Stable ---- * Scope Ratings:<ref>{{Cite web|url=https://www.scoperatings.com/ratings-and-research/rating/EN/176724|title=Scope affirms the Arab Republic of Egypt's ratings at B- and revises the Outlook to Stable|website=scoperatings.com|access-date=12 April 2024}}</ref> * B− * Outlook: Stable}} | cianame = egypt | spelling = Egypt | usebelowbox = yes | presentUS$asdefault = yes }} The '''economy of Egypt''' is a [[developing country|developing]], [[mixed economy]], combining private enterprise with centralized economic planning and government regulation.<ref>{{cite web |url=https://globaledge.msu.edu/countries/egypt/memo |title=Egypt: Country Memo |website=globalEDGE |publisher=Michigan State University |access-date=25 April 2025}}</ref> It is the second-largest economy in [[Africa]], and [[List of countries by GDP (nominal)|41st in worldwide ranking]] as of 2025. [[Egypt]] is a major [[emerging market]] economy and a member of the [[African Union]], [[BRICS]], and a signatory to the [[African Continental Free Trade Area]] (AfCFTA). The country is witnessing a period of economic recovery after facing serious financial challenges.<ref name=intro1>{{cite news | url=https://www.bloomberg.com/news/newsletters/2024-03-11/egypt-stocks-rally-saudi-aramco-s-dividend-biden-warns-israel | title=Egypt Stocks Rally, Saudi Aramco's Dividend, Biden Warns Israel | date=11 March 2024 | access-date=27 February 2025 }}</ref> The Egyptian economy has been bolstered by a series of reforms under its sustainable development strategy [[Egypt Vision 2030]], including a dramatic currency flotation in 2024 that led to a 38% depreciation of Egyptian pound against the dollar after securing over $50 billion in international financing. These actions, alongside strategic agreements with global partners such as the [[IMF]], [[World Bank]], the [[European Union]], and the [[Gulf Cooperation Council|Gulf States]], have contributed to an improved credit outlook.<ref name="intro1"/> Since the 2000s, structural reforms (including fiscal and monetary policies, taxation, [[privatization]] and new business legislation) helped Egypt move towards a more [[Market economy|market-oriented economy]] and increased foreign investment. The reforms and policies strengthened [[Macroeconomics|macroeconomic]] annual growth results and helped to address the country's serious [[List of countries by unemployment rate|unemployment]] and [[List of countries by percentage of population living in poverty|poverty]] rates.<ref name=":2">{{Cite web|title=Egypt's Unemployment Falls to Lowest Levels in 14 Years|url=https://english.aawsat.com/home/article/2794696/egypt%E2%80%99s-unemployment-falls-lowest-levels-14-years|access-date=2021-03-03|website=Asharq AL-awsat|language=en}}</ref><ref>{{Cite web|title=Egypt's poverty rate declines to 29.7%: CAPMAS - Economy - Business|url=http://english.ahram.org.eg/NewsContent/3/12/396107/Business/Economy/Egypt%E2%80%99s-poverty-rate-declines-to--CAPMAS.aspx|access-date=2021-03-03|website=Ahram Online|language=en|archive-date=13 March 2021|archive-url=https://web.archive.org/web/20210313123200/https://english.ahram.org.eg/NewsContent/3/12/396107/Business/Economy/Egypt%E2%80%99s-poverty-rate-declines-to--CAPMAS.aspx|url-status=dead}}</ref> Despite facing significant challenges, especially external shocks such as the global economic impacts of the [[Ukraine-Russia War|Ukraine conflict]] and regional instability, Egypt's economy remains resilient. The government's efforts to engage with international financial markets and stabilize the economy have paved the way for continued growth and further economic integration within the broader African and global markets.<ref name="intro1"/> The country benefits from political stability; its proximity to Europe, and increased exports.<ref name="auto2">{{Cite web|date=2021-03-02|title=France's Coface favours Egypt to lead Africa's economic recovery|url=https://www.theafricareport.com/69219/frances-coface-favours-egypt-to-lead-africas-economic-recovery/|access-date=2021-03-07|website=The Africa Report.com|language=en-US}}</ref> == History == ===Ancient Egypt=== {{More|Ancient Egypt#Government and economy}} [[File:Le_Jardin_de_Nébamoun.jpg|thumb|left|Rectangular fishpond with ducks and [[Lotus (plant)|lotus]] planted round with date palms and fruit trees, [[Tomb of Nebamun]], Thebes, 18th Dynasty]] The economy in [[ancient Egypt]] was deeply embedded in its centralized state structure, with the pharaoh exercising theoretical control over all land and resources. Wealth was managed and redistributed through a network of temples and granaries overseen by appointed officials, particularly the [[vizier]], who supervised land surveys, tax collection, and resource allocation. While coinage was not used until the [[Late Period of ancient Egypt|Late Period]], Egyptians relied on a barter-based economy, where standardized values, such as sacks of grain and copper deben, were used for wages and trade. Laborers received monthly grain rations, and a fixed price system regulated commerce throughout the kingdom.{{sfnp|Manuelian|1998|pp=358, 361, 363, 372}}{{sfnp|Meskell|2004|p=23}} Agriculture formed the foundation of the economy, sustained by the annual [[flooding of the Nile]], which deposited nutrient-rich silt on the fields. The state taxed agricultural production according to the land owned, and farmers were obligated to provide both goods and labor through a corvée system. [[Emmer]] and [[barley]] were the primary staples, used to make bread and beer, while [[flax]] provided [[linen]] for clothing. [[Papyrus]] was harvested for writing material, and vegetables such as [[leeks]], [[garlic]], [[melons]], and [[pulses]] were cultivated alongside fruits like [[grapes]] and [[Date palm|dates]]. Additional goods included [[textiles]], [[beer]], [[wine]], [[honey]], and [[leather]], many of which were produced in temple workshops. Livestock, such as [[cattle]], [[poultry]], [[donkeys]], and [[bees]], played vital economic and ritual roles, while natural resources like [[copper]], [[gold]], [[alabaster]], and [[granite]] were extracted through state-controlled expeditions.{{sfnp|Manuelian|1998|p=381}}{{sfnp|Nicholson|Shaw|2000|pp=28, 409, 510, 514, 577, 630}}{{sfnp|Lucas|1962|p=413}}{{sfnp|Greaves|Little|1930|p=123}} ===Greco-Roman period=== {{More|Ptolemaic Kingdom#Economy|Roman Egypt#Economy}} [[File:Cleopatra Mint Alexandria.jpg|thumb|left|A silver coin of 40 [[Ancient drachma|drachmai]] (1 obol) minted in [[Alexandria]] between 51 and 30 BC, with [[Cleopatra VII]] depicted on the obverse, and an eagle on a thunderbolt with the inscription "{{lang|grc|ΒΑΣΙΛΙΣΣΗΣ ΚΛΕΟΠΑΤΡΑΣ}}" ([[Basileus|Basilissēs]] Kleopatras) on the reverse.<ref>{{Cite web |title=CoinArchives.com Search Results: drachmai |url=https://www.coinarchives.com/a/results.php?search=drachmai |access-date=17 May 2024 |website=www.coinarchives.com}}</ref>]] [[Ptolemaic Egypt]] blended traditional agrarian systems with new fiscal and administrative reforms.<ref name="manningGR" /> The economy produced [[wheat]], [[flax]], [[wine]], and [[textiles]], with state control over [[beer]], [[food oil|oil]], and [[salt]]. Agriculture, organized around the Nile’s flood cycle, remained central.<ref name="manningGR" /> The early Ptolemies implemented extensive land reclamation where immigrant [[Greeks]] and military settlers were granted privileged access to land, while native [[Egyptians]] were pushed into subordinate roles with limited protections.<ref name="manningGR" /> Greeks also dominated Hellenic urban centers and [[viticulture]], while the administrative spread of the [[ancient Greek|Greek language]] displaced [[Demotic Egyptian|Demotic]], restricting Egyptian access to legal and bureaucratic institutions.<ref name=manningGR>{{cite book | last=Manning | first=J.G. | chapter=The Ptolemaic Economy | editor1-last=Morris | editor1-first=Ian | editor2-last=Saller | editor2-first=Richard | editor3-last=Scheidel | editor3-first=Walter | title=The Cambridge Economic History of the Greco-Roman World | publisher=Cambridge University Press | date=2004 | location=Cambridge | url=https://cega.berkeley.edu/wp-content/uploads/2016/04/1_Manning_The-Ptolemaic-Economy.pdf | access-date=2025-04-16 }}</ref> The state developed a complex and unequal tax system on land, produce, labor, and individuals, collected via granaries and banks.<ref name="manningGR" /> Taxation favored Greeks through exemptions and privileges, while Egyptians faced heavier burdens.<ref name="manningGR" /> Temples retained economic significance but lost autonomy under centralized administration.<ref name="manningGR" /> Early Ptolemaic Egypt experienced a notable degree of prosperity, driven by land reclamation, urban expansion, and the growth of fiscal and agricultural systems, though this development was ultimately constrained by institutional rigidity and entrenched social inequality, contributing to later unrest.<ref name=manningGR/> During the Greco-Roman and Byzantine periods, Egypt, particularly Upper Egypt, became renowned for its textile production.<ref name=":0" /> Workshops across the country produced what came to be known as ''Coptic textiles'', characterized by intricate designs, vivid colors, and techniques such as tapestry weaving.<ref name=":0" /> These textiles preserved elements of Pharaonic craftsmanship while integrating Greco-Roman stylistic influences.<ref name=":0" /> In the Byzantine period, linen and woolen textiles featuring geometric, vegetal, and figural motifs flourished, forming the artistic and technical foundation for Egypt’s later Islamic textile industry, which adopted and adapted many of these decorative traditions.<ref name=":0">{{cite journal |last=Edwards |first=Evan |last2=Farag |first2=Neven |title=Fayoum Textiles Features during Tulunid Period (868–905 AD) |journal=Minia Journal of Tourism and Hospitality Research |volume=7 |issue=1/1 |year=2019 |pages=55–78 |url=https://tour.minia.edu.eg/Files/magalaa/512019.pdf |access-date=2025-04-16 }}</ref> ===Middle Ages=== {{Also|Egypt in the Middle Ages}} Beginning in the early Islamic period, Egypt’s countryside was incorporated into a broader administrative and fiscal structure that facilitated the movement of goods and surplus to urban centers.<ref name=":4" /> By the 11th and 12th centuries, this integration had developed into a dynamic economic relationship between rural producers and commercial networks.<ref name=":4" /> Villages produced [[grain]], [[flax]], [[Indigo dye|indigo]], [[sugar]], and [[linen|linen textiles]], much of which was sent to [[Fustat]], the primary urban hub for redistribution.<ref name=":4" /> Documents from the [[Cairo Geniza]] reveal that rural merchants and producers were involved in long-distance trade linking Egypt to the [[Mediterranean]] and the [[Indian Ocean]].<ref name=":4">{{cite journal |last=Udovitch |first=A.L. |title=International Trade and the Medieval Egyptian Countryside |journal=Proceedings of the British Academy |volume=96 |pages=267–284 |year=1998 |url=https://www.thebritishacademy.ac.uk/documents/3882/96p267.pdf |access-date=2025-04-16 }}</ref> The textile industry was a foundational component of Egypt’s economy during the Middle Ages, integrating agriculture, manufacturing, and commerce.<ref name=":5" /> Flax was widely cultivated, and its transformation into linen textiles constituted a major branch of productive activity.<ref name=":5" /> Textile production involved both privately organized enterprise and operations connected to government institutions. In addition to being a leading export commodity, textiles also circulated within the domestic economy as a means of exchange and a store of value.<ref name=":5" /> Egypt’s prosperity during this period depended not only on its role in international trade but also on the internal scale and organization of its textile production.<ref name=":5">{{cite journal |last=Frantz-Murphy |first=Gladys |title=A New Interpretation of the Economic History of Medieval Egypt: The Role of the Textile Industry 254–567/868–1171 |journal=Journal of the Economic and Social History of the Orient |volume=24 |issue=3 |year=1981 |pages=274–297 |jstor=3631908 }}</ref>[[File:Mamluk Carpet, Egypt - Google Art Project.jpg|thumb|left|229x229px|A [[Mamluk Sultanate|Mamluk]]-era wool carpet from Egypt, {{Circa|1500}}–1550.]]Patterns of saving and investment during this period reflected a high degree of economic organization.<ref name=":6" /> Wealth was accumulated through land, textiles, and monetary holdings, and often reinvested into productive activities such as textile manufacture, agriculture, and trade.<ref name=":6" /> The integration of these practices into everyday economic life highlights the structured financial environment that characterized medieval Egypt.<ref name=":6">{{cite journal |last=Frantz |first=Gladys M. |title=Saving & Investment in Medieval Egypt |journal=Business and Economic History |volume=8 |year=1979 |pages=110–113 |jstor=23702597}}</ref> In the fifteenth century, Egypt experienced a series of economic and financial crises under the [[Mamluk Egypt|Mamluk regime]], marked by inflation, currency instability, and fiscal disorder.<ref name=":7" /> Contemporary scholars such as [[al-Maqrizi]] and al-Asadi offered detailed assessments of the causes and proposed reforms.<ref name=":7" /> Al-Maqrizi identified the debasement of the currency and the overreliance on copper coinage as central problems, advocating a return to the use of gold and silver standards.<ref name=":7" /> Al-Asadi presented a broader analysis, attributing the crisis to both monetary mismanagement and deeper structural inequalities, including the concentration of wealth and administrative corruption.<ref name=":7">{{cite journal |last=Islahi |first=Abdul Azim |title=Economic and Financial Crises in Fifteenth-Century Egypt: Lessons From the History |journal=Islamic Economic Studies |volume=21 |issue=2 |year=2013 |pages=71–92 |url=https://mpra.ub.uni-muenchen.de/61798/1/MPRA_paper_61798.pdf |access-date=2025-04-16 }}</ref> ===Early modern period=== Egypt’s earliest industrial efforts began under [[Muhammad Ali of Egypt|Muhammad Ali]] (r. 1805–1849), whose state-led program focused on military goods, agricultural processing, and textiles.<ref name="MERIP" /> By the 1830s, 30 cotton mills employed around 30,000 workers, but the experiment collapsed due to poor management, fuel shortages, and reliance on forced corvée labor.<ref name="MERIP" /> Though short-lived, this phase weakened traditional artisan guilds and introduced wage labor.<ref name="MERIP" /> A later wave under [[Isma'il Pasha]] (r. 1863–1879), sparked by the [[American Civil War]] cotton boom, saw attempts at diversification with sugar refineries and textile plants.<ref name="MERIP" /> These too struggled against European competition, but they helped expand Egypt’s wage labor force and laid foundations for a modern working class.<ref name="MERIP">{{cite web |last=Beinin|first=Joel|title=Formation of the Egyptian Working Class |url=https://merip.org/1981/01/formation-of-the-egyptian-working-class/ |website=MERIP |date=January 1981 |access-date=17 April 2025}}</ref> Between 1869 and 1876, Ismail launched British-led military campaigns against Sudanese slave raiders, as part of broader efforts to reassert Egyptian authority in Sudan.<ref name=":8" /> The process culminated in the signing of the [[Anglo-Egyptian Slave Trade Convention]] in 1877, which formally ended the practice of slavery and slave trade in Egypt.<ref name=":8" /> Ismail’s increasing political subordination to Britain, particularly after Egypt's default on its international debt in 1876, likely facilitated the agreement.<ref name=":8">{{Cite journal |last=Saleh |first=Mohamed |date=2024 |title=Trade, Slavery, and State Coercion of Labor: Egypt during the First Globalization Era |url=https://www.cambridge.org/core/journals/journal-of-economic-history/article/trade-slavery-and-state-coercion-of-labor-egypt-during-the-first-globalization-era/E2856D1AF5D5A75DD41204C20A67C752 |journal=The Journal of Economic History |volume=84 |issue=4 |pages=1107–1141 |language=en |doi=10.1017/S002205072400038X |issn=0022-0507}}</ref> By the late 19th century, a clearer working class began to emerge. This was shaped by Egypt’s integration into the global capitalist economy under foreign control, especially following the [[History of Egypt under the British|British occupation in 1882]].<ref name="MERIP" /> European capital, attracted to Egypt’s export sector, invested heavily in transport and utilities, prompting the development of urban infrastructure but neglecting broader industrialization.<ref name="MERIP" /> Employment in these sectors, especially railways, ports, and public utilities, formed the nucleus of the new working class.<ref name="MERIP"/> [[File:ModernEgypt, Fouad I, DHP13402-1-12 01.jpg|thumb|[[King Fuad I]] with his ministers on a visit to the phosphate mines in the [[Red Sea Governorate|Red Sea region]].]] Legal reforms under Muhammad Ali and his successors enabled land privatization, displacing a third of the peasantry by the late 19th century.<ref name="MERIP" /> Many had migrated to cities, joining an expanding pool of wage laborers. Meanwhile, the rise of foreign capital eroded Egypt’s artisan guilds, particularly after the 1890 Professional Permits Duty.<ref name="MERIP" /> Guilds fractured, with guild heads becoming labor contractors and members reduced to common laborers, leading to tensions culminating in early labor unrest such as the 1882 Port Said coal loaders' strike.<ref name="MERIP"/> By the early 20th century, guild-based trades had collapsed, leading to a notable increase in wage labor.<ref name="MERIP" /> Foreign skilled workers, mainly Greeks, Armenians, and Italians, introduced European labor ideologies and led early strikes in sectors like cigarettes, tailoring, and printing.<ref name="MERIP" /> However, wage disparities and employer manipulation often hindered unity with Egyptian workers.<ref name="MERIP" /> Strikes in the tram and railway sectors fostered unionization and greater class awareness, especially during the 1908 and 1911 Cairo tram strikes, which drew harsh repression and led to martial law in 1914.<ref name="MERIP"/> Despite several waves of industrial experimentation, early attempts at industrialization struggled due to factors like [[tariff]] restrictions imposed by Britain through the [[Treaty of Balta Liman|1838 commercial treaty]]. In the beginning of the 20th century, little industrial development occurred, and Egypt's land-owning elite invested mainly in land rather than industry.<ref name=":1">{{citation-attribution|1={{cite encyclopedia|title=Egypt: a country study|publisher=[[Federal Research Division]], [[Library of Congress]]|location=Washington, D.C.|url=https://www.loc.gov/item/91029876/|last=Elmusa|first=Sharif S.|date=1991|editor-last=Metz|editor-first=Helen Chapin|editor-link=Helen Chapin Metz |edition=5th|pages=157–159|isbn=0-8444-0729-1|oclc=24247439|entry=The Economy}}}}</ref> Foreign competition stunted domestic ventures, with only a few enterprises, such as sugar and cotton processing, surviving under foreign ownership.<ref name=":1" /> In the following years, over one million Egyptians would be conscripted to the [[Egyptian Labour Corps]] and [[Egyptian Camel Transport Corps]] to support British efforts in World War I, often through coercion.<ref name="MERIP" /> Simultaneously, wartime shortages fostered growth in domestic industries such as textiles and food processing, prompting the establishment of the Commission of Commerce and Industry in 1916.<ref name="MERIP"/> [[File:Talaat Harb.jpg|thumb|left|170px|[[Talaat Harb]], widely regarded as the father of the modern Egyptian economy<ref name="talaatharb" />]] By the 1920s, Egypt’s urban labor force had grown significantly, supported by a limited but increasing domestic industrialization under a wave of economic nationalism<ref name="MERIP"/> pioneered in large part by [[Talaat Harb]], an Egyptian financier. In 1920, Harb founded [[Banque Misr]], the country’s first national bank funded entirely with Egyptian capital, with an initial start-up capital of EGP 80,000 (approximately USD 5,000).<ref name="talaatharb" /> Harb envisioned a financial institution that would channel national savings into industrial and economic development.<ref name="talaatharb" /> His efforts marked a turning point in Egypt’s economic history, enabling Egyptians to exert greater control over their country’s financial resources and laying the foundation for national industrialization.<ref name=talaatharb>{{cite web |title=The One-Man Show: Talaat Harb’s Legacy in Egypt |url=https://egyptianstreets.com/2022/03/24/the-one-man-show-talaat-harbs-legacy-in-egypt/ |website=Egyptian Streets |date=24 March 2022 |access-date=17 April 2025}}</ref> Beyond banking, Harb spearheaded the establishment of multiple industrial and service ventures across textiles, insurance, shipping, real estate, and media.<ref name="talaatharb" /> He founded [[Studio Misr]] in 1935, which became Egypt’s leading film production hub for over three decades, as well as [[EgyptAir]] in 1932, the first airline in the Middle East and the seventh in the world.<ref name="talaatharb" /> Through Banque Misr, he also launched companies in cotton ginning, paper manufacturing, and printing, helping to create a vertically integrated national economy. These initiatives were critical in asserting Egypt’s economic independence and identity during and after the colonial period.<ref name=talaatharb/> The [[Great Depression]] helped catalyze industrialization, shifting Egypt toward import-substitution industries.<ref name=":1" /> In 1930, the expiration of commercial treaties allowed Egypt to control its tariff policies, fostering local industry.<ref>{{Cite journal |title=Armed Services Technical Information Agency. |url=https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |journal=CIA Declassified Files. |pages=294 |access-date=2 September 2023 |archive-date=2 September 2023 |archive-url=https://web.archive.org/web/20230902193805/https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |url-status=dead }}</ref> On February 16, 1930, Egypt enacted tariff reforms aimed at protecting local industries. The government imposed high duties on imports and reduced taxes on raw materials, encouraging local manufacturing. The changes led to a decline in imports of finished goods and an increase in raw materials and machinery by 1938.<ref>{{Cite journal |title=Armed Services Technical Information Agency. |url=https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |journal=CIA Declassified Files. |pages=296 |access-date=2 September 2023 |archive-date=2 September 2023 |archive-url=https://web.archive.org/web/20230902193805/https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |url-status=dead }}</ref> [[World War II]] provided a boost to industrialization, with increased demand from Allied forces and local consumers. Many industries diversified, while new enterprises emerged.<ref name=":9" /> The war also trained workers, helping to establish a foundation for local industries that expanded in the post-war period. By 1947, the government enacted laws and established an industrial bank to support industrial growth.<ref name=":9">{{Cite journal |title=Armed Services Technical Information Agency. |url=https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |journal=CIA Declassified Files. |pages=297–298 |access-date=2 September 2023 |archive-date=2 September 2023 |archive-url=https://web.archive.org/web/20230902193805/https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |url-status=dead }}</ref> ===Early Republican period=== In July 1952, the Egyptian monarchy was overthrown in a coup led by the [[Free Officers movement (Egypt)|Free Officers movement]], a group of army officers founded by [[Gamal Abdel Nasser]] and formally headed by General [[Muhammad Naguib]]. The officers held [[King Farouk]] responsible for Egypt’s military defeat in the [[1948 Arab–Israeli War]] and the country's persistent socioeconomic problems, including widespread poverty, illiteracy, and underdevelopment.<ref>{{cite book |last=Beattie |first=Kirk J. |title=Egypt During the Sadat Years |page=2}}</ref> These conditions were underscored by the stagnation of per capita [[gross national product]] (GNP), which averaged {{EGP|43}} in 1954 prices between the end of [[World War I]] and the [[1952 Revolution]].<ref name=":1" /> Under [[Gamal Abdel Nasser]], Egypt's economy saw substantial growth driven by agrarian reforms, [[Import substitution industrialization|import substitution]], key nationalisation efforts like the [[Suez Company (1858–1997)|Suez Canal Company]], and major infrastructure projects, including the Helwan steel works and the [[Aswan High Dam]]. This period marked an unprecedented rise in living standards, offering Egyptians access to housing, education, healthcare, and employment.<ref name="Cook111">{{Harvnb|Cook|2011|p=111}}</ref><ref name="Ahram">[http://weekly.ahram.org.eg/2000/501/nasser2.htm Liberating Nasser's legacy] {{webarchive|url=https://web.archive.org/web/20090806232017/http://weekly.ahram.org.eg/2000/501/nasser2.htm |date=2009-08-06 }} ''[[Al-Ahram Weekly]]''. 4 November 2000.</ref><ref name="Cook112">{{Harvnb|Cook|2011|p=112}}</ref> [[File:Nasser at Helwan car factory.jpg|thumb|left|President [[Gamal Abdel Nasser|Nasser]] at the inauguration of the [[El Nasr Automotive Manufacturing Company|Nasr Automotive]] factory in [[Helwan]]]] The land reforms of 1952 aimed to weaken the old landowning class and promote industrialization, with Nasser’s government supporting urban workers through labor reforms.<ref name="nasserism" /> The nationalization of key industries occurred between 1957 and 1961, alongside increased public sector control.<ref name="nasserism" /> While the initial economic results were positive, a crisis emerged by the mid-1960s due to the unsustainable combination of rising consumption and investment.<ref name=nasserism>{{cite web | url=https://merip.org/1982/07/egypts-transition-under-nasser/ | title=Egypt's Transition Under Nasser | publisher=MERIP | date=July 1982 | access-date=27 February 2025 }}</ref> By necessity if not by design, the revolutionary regime gave considerably greater priority to economic development than did the monarchy, and the economy has been a central government concern since then.<ref name=":1" /> While the economy grew steadily, it sometimes exhibited sharp fluctuations.<ref name=":1" /> Analysis of economic growth is further complicated by the difficulty in obtaining reliable statistics.<ref name=":1" /> Growth figures are often disputed, and economists contend that growth estimates may be grossly inaccurate because of the [[informal economy]] and workers' [[remittance]]s, which may contribute as much as one-fourth of GNP.<ref name=":1" /> According to one estimate, the [[gross domestic product (GDP)]], at 1965 constant prices, grew at an annual compound rate of about 4.2 percent between 1955 and 1975.<ref name=":1" /> This was about 1.7 times larger than the annual population growth rate of 2.5 percent in the same period.<ref name=":1" /> The period between 1967 and 1974, the final years of [[Gamal Abdul Nasser]]'s presidency and the early part of [[Anwar Sadat]]'s, however, were lean years, with growth rates of only about 3.3 percent.<ref name=":1" /> The slowdown was caused by many factors, including agricultural and industrial stagnation and the costs of the [[Six Day War|1967 war]].<ref name=":1" /> Investments, which were a crucial factor for the preceding growth, also nose-dived and recovered only in 1975 after the dramatic 1973 increase in oil prices.<ref name=":1" /> [[Anwar Sadat]]’s [[Infitah]], or "Open Door Policy", introduced in 1974, marked a stark departure from Nasser's approach, shifting Egypt toward closer ties with the Western capitalist market.<ref name="nasserism" /> This policy led to the emergence of a new ruling coalition, consisting of technocrats, former landowners, and private-sector entrepreneurs, further solidifying the role of market forces in Egypt's economy.<ref name="nasserism" /> The changes introduced under Sadat's era effectively marked a shift towards capitalist development, contrary to the socialist trajectory some had hoped for following Nasser’s reforms.<ref name=nasserism/> Like most countries in the Middle East, Egypt partook of the [[oil boom]] and suffered the subsequent slump.<ref name=":1" /> Available figures suggest that between 1975 and 1980 the GDP (at 1980 prices) grew at an annual rate of more than 11 percent.<ref name=":1" /> This impressive achievement resulted, not from the contribution of manufacturing or agriculture, but from oil exports, [[remittance]]s, foreign aid, and grants.<ref name=":1" /> From the mid-1980s, GDP growth slowed as a result of the 1985-86 crash in oil prices.<ref name=":1" /> In the two succeeding years, the GDP grew at no more than an annual rate of 2.9 percent.<ref name=":1" /> Of concern for the future was the decline of the [[fixed investment]] ratio from around 30 percent during most of the 1975-85 decade to 22 percent in 1987.<ref name=":1" /> === Reform era === [[File:Smartvillagelandscape.JPG|thumb|[[Smart Village, Egypt|Smart Village]], a business district in [[6th of October (city)|6th of October]] established in 2001 to facilitate the growth of high-tech businesses.]] Egypt began implementing structural adjustment reforms in the early 1990s to address a worsening macroeconomic situation marked by low growth, double-digit inflation, unsustainable fiscal and current account deficits, and heavy reliance on import restrictions to protect inefficient, state-led industries.<ref name="achy2010">{{cite web |last=Achy |first=Lahcen |title=The Uncertain Future of Egypt’s Economic Reforms |url=https://carnegieendowment.org/posts/2010/12/the-uncertain-future-of-egypts-economic-reforms |website=Carnegie Endowment for International Peace |date=22 December 2010 |access-date=22 April 2025}}</ref> These reforms aimed to reduce the country’s rentier-state characteristics by shifting economic control from the public to the private sector.<ref name="achy2010"/> A major shift occurred in 2004 with the appointment of [[Ahmed Nazif]] as prime minister.<ref name="achy2010" /> His cabinet introduced a new round of reforms, including the restructuring of the banking sector, increasing the private sector share, and widespread privatization of state-owned enterprises.<ref name="achy2010" /> Efforts to reduce the public debt included cutting subsidies and shrinking the government workforce.<ref name="achy2010"/> In this period Egypt experienced fluctuating economic growth accompanied by shifting patterns of poverty, inequality, and middle-class formation.<ref name="rashdan2021" /> The government undertook major policy reforms, with significant changes in income distribution, and debates over whether economic growth was inclusive or "pro-poor".<ref name="rashdan2021">{{cite journal |last=Rashdan |first=Abeer Mohamed Ibrahim |title=The Puzzle of Middle Class and Growth in Egypt (1990–2008) |journal=Scientific Journal for Financial and Commercial Studies and Researches |volume=2 |issue=2 |pages=1–24 |publisher=Faculty of Commerce, Damietta University |date=July 2021 |url=https://cfdj.journals.ekb.eg/article_146709_1f59f9610942d0a2cfccdc05f207fa96.pdf |access-date=17 April 2025}}</ref> Despite economic growth, poverty persisted. The proportion of Egyptians living under the national poverty line declined from 24.2% in 1991 to a low of 16.7% in 2000, before rising again to 22% in 2008.<ref name="rashdan2021" /> Similarly, the share of the population living on less than $2 per day (PPP) fell from 28% in 1990 to 15% by 2008. Absolute extreme poverty, defined as living on less than $1.25 per day, remained relatively low at around 2% from 2000 onward.<ref name="rashdan2021" /> {| class="wikitable" |- style="background:#ccc;" | '''Indicator'''<ref>{{Cite web|url=https://www.imf.org/external/pubs/ft/weo/2018/02/weodata/weorept.aspx?pr.x=36&pr.y=9&sy=1980&ey=2017&scsm=1&ssd=1&sort=country&ds=.&br=1&c=469&s=NGDPRPC,NGDPPC,NGDPDPC,PPPPC&grp=0&a=|title=Report for Selected Countries and Subjects|website=www.imf.org|access-date=9 December 2018}}</ref> || '''1980''' || '''1990''' || '''2000''' || '''2005''' || '''2010''' |- style="text-align:right;" | style="background:#ddd;" | GDP per capita at constant prices, ({{EGP}}) || 9,548.57 || 12,507.81 || 15,437.06 || 16,680.25 || 20,226.91 |- style="text-align:right;" | style="background:#ddd;" | GDP per capita at current prices, ({{EGP}}) || 406.03 || 1,967.41 || 5,607.67 || 8,003.33 || 16,115.11 |- style="text-align:right;" | style="background:#ddd;" | GDP per capita at current prices, (US$) || 580.04 || 1,870.85 || 1,642.63 || 1,330.46 || 2,921.76 |- style="text-align:right;" | style="background:#ddd;" | GDP (PPP) per capita, ([[Int$]]) || 2,252.47 || 4,444.05 || 6,725.83 || 8,137.14 || 10,848.16 |} The [[Gini index]], a measure of income inequality, remained moderate, fluctuating between 30 and 33.8 over the period. The [[Palma ratio]], which captures the income share of the richest 10% compared to the poorest 40%, declined slightly, indicating marginal improvement in distribution.<ref name="rashdan2021" /> The middle class, however, exhibited a more complex trajectory. Using absolute income thresholds, the middle class appeared to constitute over 80% of the population by 2008.<ref name="rashdan2021" /> Yet, when defined using relative or median-based thresholds, its size appeared far smaller, approximately 40% by some estimates, and even declined during periods of high economic growth.<ref name="rashdan2021" /> This paradox reflected the vulnerability of those just above the poverty line, often labeled as “new strugglers”, who were susceptible to falling back into poverty.<ref name="rashdan2021" /> To stimulate investment and trade, the corporate tax rate was lowered from 40 to 20 percent, and tax collection mechanisms were strengthened. Tariff barriers were drastically reduced, and Egypt entered into preferential trade agreements with the United States, the European Union, several Arab and African neighbors, as well as neighboring states.<ref name="achy2010"/> These changes contributed to an improved business climate and growing investor confidence. Between 2003 and 2008, exports of goods and services tripled, tourism surged by over 60 percent, and foreign direct investment rose by 50 percent in 2007 alone. As a result, Egypt’s external debt declined to less than 20 percent of GDP by 2009.<ref name="achy2010"/> Although the 2000s were marked by robust macroeconomic growth, the benefits were not evenly distributed. Consumption gains were concentrated among the top decile, while lower quintiles saw marginal improvements.<ref name="rashdan2021" /> Consequently, while poverty indicators improved, public dissatisfaction remained widespread, as large segments of the population perceived limited social mobility or security.<ref name="rashdan2021" /> The disconnect between growth and equitable distribution contributed to mounting discontent in the years leading to the 2011 revolution.<ref name="rashdan2021" /> ===2008 financial crisis=== The [[2008 financial crisis]] followed closely by the [[global food crisis]] presented Egypt with significant economic challenges, but it also prompted more integrated policy reforms. Policymakers responded quickly to mitigate the impacts of these shocks, notably adjusting monetary and fiscal policies as well as regulatory frameworks. A moderate [[Financial crisis]] took hold, partly fueled by fear of widespread panic selling, leading to declines in stock and bond markets and increases in nominal interest rates.<ref>{{Cite journal |title=Figure 1.9. Employment in the private and public sectors in the long run |url=https://doi.org/10.1787/888932367833 |access-date=2024-12-12 |website=doi.org|doi=10.1787/888932367833 }}</ref> Egypt’s population, concentrated within a narrow strip along the [[Nile River]], primarily worked in the services, agriculture, and industrial sectors, with about one-third directly involved in farming.<ref>{{Cite web |title=Egypt - Agriculture |url=https://www.globalsecurity.org/military/world/egypt/agriculture.htm |access-date=2023-01-21 |website=www.globalsecurity.org}}</ref> The unemployment rate increased from 10.3% in FY2004 to 11.2% in 2005, exacerbated by the privatization efforts that led to job losses in public enterprises. Private sector employment grew at a faster pace than the public sector.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/egypt/|title=The World Factbook—Central Intelligence Agency|website=www.cia.gov|language=en|access-date=1 May 2018}}</ref> In response to rising food prices, the Egyptian government, led by President [[Mubarak]], implemented a pay rise of up to 30% for government and public sector workers in 2008. This was part of an effort to strengthen food security for low-income citizens and to balance wages with prices. The decision to double the originally proposed 15%-20% pay rise came as widespread discontent over inflation could lead to social unrest.<ref>{{Cite news|last=Wright|first=Jonathan|date=30 April 2008|title=30% pay hike for Egyptians as rising prices bite|url=https://www.arabianbusiness.com/politics-economics/30-pay-hike-for-egyptians-as-rising-prices-bite-119958|access-date=22 February 2022|website=Arabian Business}}</ref> The consumer price index (CPI) inflation rate reached 15.8% in March 2008, with food price inflation much higher at 23.7%. These high inflation figures particularly impacted Egypt's poor and low-income citizens, who spent a large portion of their income on food. By April 2008, food inflation reached 22%, making it clear that inflation as measured by the headline CPI did not capture the struggles of the majority of the population, who were enrolled in food ration programs.<ref>{{Cite web|title=Mubarak proposes 30% public sector pay rise|url=https://gulfnews.com/world/mena/mubarak-proposes-30-public-sector-pay-rise-1.102973|access-date=2022-02-22|website=gulfnews.com|date=30 April 2008 |language=en}}</ref> Amid these economic pressures, in April 2009, Egypt was concerned about the return of 500,000 Egyptian laborers from Gulf states, which would have further complicated its economic recovery efforts.<ref>{{cite web|url=http://www.infoprod.co.il/article/2/248.html|title=IPR – Egypt fears return of 500,000 workers from Gulf|access-date=4 March 2015}}</ref> ===Post-revolution=== Following the [[Egyptian Revolution of 2011|2011 revolution]], Egypt's economy plunged into a severe downturn, facing significant challenges in restoring growth and investor confidence. Foreign exchange reserves fell from US$36 billion in December 2010 to just US$16.3 billion by January 2012. Concerns over social unrest and financial instability led to repeated downgrades by credit rating agencies.<ref>{{cite news |url= http://english.nuqudy.com/General_Overview/North_Africa/SP_Downgrades_Egypt-883 |archive-url= https://archive.today/20120709042815/http://english.nuqudy.com/General_Overview/North_Africa/SP_Downgrades_Egypt-883 |url-status= usurped |archive-date= 9 July 2012 |title= S&P Downgrades Egypt's Credit Rating |access-date= 13 February 2012}}</ref> In 2016, Egypt floated its currency and initiated a reform program with a US$12 billion [[IMF]] loan to restore macroeconomic stability.<ref>{{cite news |title=Egypt: Time to Entrench Growth and Make It More Inclusive |url=https://www.imf.org/en/News/Articles/2018/01/22/na012318-egypt-time-to-entrench-growth-and-make-it-more-inclusive |access-date=30 June 2018 |agency=International Monetary Fund}}</ref> Inflation had eased by May 2019, indicating signs of economic stabilization.<ref>{{cite web|url=https://www.thenational.ae/business/economy/egypt-inflation-eases-as-economy-strengthens-1.859536|title=Egypt inflation eases as economy strengthens|date=9 May 2019|access-date=9 May 2019|publisher=The National}}</ref>Despite efforts, Egypt’s economy was hit by the global [[COVID-19]] crisis, with real growth declining from 5.6% in FY2018/19 to 3.6% in FY2019/20, reflecting a 1.7% contraction during the April–June period of 2020.<ref>{{Cite web|title=Overview|url=https://www.worldbank.org/en/country/egypt/overview|access-date=2021-10-22|website=World Bank|language=en}}</ref> In 2024, Egypt made fiscal adjustments, agreeing with the IMF to raise the tax-to-revenue ratio and accelerate the privatization of state-owned companies to strengthen public finances.<ref>{{Cite web |title=IMF, Egypt reach deal to unlock $1.2bn to shore up strained public finances |url=https://www.aljazeera.com/economy/2024/12/25/imf-egypt-reach-deal-to-unlock-one-to-two-billion-dollars |access-date=2025-01-02 |website=Al Jazeera |language=en}}</ref> Both the IMF and the World Bank predicted 3.8% growth in the Egyptian economy in the fiscal year 2024/2025.<ref>{{Cite web |last=Egypt |first=Daily News |date=2025-04-26 |title=Egypt welcomes WB, IMF growth forecasts, points to reforms |url=https://www.dailynewsegypt.com/2025/04/26/egypt-welcomes-wb-imf-growth-forecasts-points-to-reforms/ |access-date=2025-04-28 |website=Dailynewsegypt |language=en-US}}</ref> == Data == The following tables shows the main economic indicators in 1986–2021 (with IMF staff estimates in 2022–2027).<ref>{{Cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2022/April/weo-report?c=469,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook Database: Egypt, April 2022 |website=International Monetary Fund |publisher=International Monetary Fund |date=April 2022 |access-date=2025-04-17}}</ref> <onlyinclude> {| class="wikitable mw-collapsible mw-collapsed" style="text-align:center; width:100%;" !colspan=9 style="background:#f2f2f2;"|'''1980s''' |- ! Year !! GDP<br><small>(bn US$ PPP)</small> !! GDP per capita<br><small>(US$ PPP)</small> !! GDP<br><small>(bn US$ nominal)</small> !! GDP per capita<br><small>(US$ nominal)</small> !! GDP growth<br><small>(real)</small> !! Inflation<br><small>(%)</small> !! Unemployment<br><small>(%)</small> !! Government debt<br><small>(% of GDP)</small> |- | 1980 || 88.5 || 2,183.1 || 23.5 || 580.0 || 3.4% || 20.5% || n/a || n/a |- | 1981 || {{Increase}}99.0 || {{Increase}}2,374.7 || {{Increase}}25.8 || {{Increase}}617.7 || 2.2% || 10.4% || n/a || n/a |- | 1982 || {{Increase}}112.8 || {{Increase}}2,633.4 || {{Increase}}30.5 || {{Increase}}711.4 || 7.3% || 14.9% || n/a || n/a |- | 1983 || {{Increase}}127.7 || {{Increase}}2,900.3 || {{Increase}}37.3 || {{Increase}}846.4 || 8.9% || 16.0% || n/a || n/a |- | 1984 || {{Increase}}142.9 || {{Increase}}3,158.3 || {{Increase}}41.9 || {{Increase}}926.0 || 8.0% || 17.1% || n/a || n/a |- | 1985 || {{Increase}}158.3 || {{Increase}}3,401.8 || {{Increase}}48.8 || {{Increase}}1,049.3 || 7.4% || 12.1% || n/a || n/a |- | 1986 || {{Increase}}169.2 || {{Increase}}3,543.6 || {{Increase}}54.1 || {{Increase}}1,132.5 || 4.8% || 23.9% || n/a || n/a |- | 1987 || {{Increase}}180.8 || {{Increase}}3,705.0 || {{Increase}}77.4 || {{Increase}}1,585.2 || 4.3% || 25.2% || n/a || n/a |- | 1988 || {{Increase}}194.7 || {{Increase}}3,908.8 || {{Increase}}92.5 || {{Increase}}1,858.0 || 4.0% || 15.2% || n/a || n/a |- | 1989 || {{Increase}}208.3 || {{Increase}}4,093.2 || {{Increase}}115.4 || {{Increase}}2,266.4 || 3.0% || 20.1% || n/a || n/a |} </onlyinclude> <onlyinclude> {| class="wikitable mw-collapsible mw-collapsed" style="text-align:center; width:100%;" !colspan=9 style="background:#f2f2f2;"|'''1990s''' |- ! Year !! GDP<br><small>(bn US$ PPP)</small> !! GDP per capita<br><small>(US$ PPP)</small> !! GDP<br><small>(bn US$ nominal)</small> !! GDP per capita<br><small>(US$ nominal)</small> !! GDP growth<br><small>(real)</small> !! Inflation<br><small>(%)</small> !! Unemployment<br><small>(%)</small> !! Government debt<br><small>(% of GDP)</small> |- | 1990 || {{Increase}}221.2 || {{Increase}}4,307.2 || {{Decrease}}96.1 || {{Decrease}}1,870.8 || 2.4% || 21.2% || 8.0% || n/a |- | 1991 || {{Increase}}233.5 || {{Increase}}4,454.2 || {{Decrease}}48.4 || {{Decrease}}923.8 || 2.1% || 14.7% || {{IncreaseNegative}}8.8% || n/a |- | 1992 || {{Increase}}239.5 || {{Increase}}4,476.7 || {{Decrease}}44.2 || {{Decrease}}825.4 || 0.3% || 21.1% || {{IncreaseNegative}}9.0% || n/a |- | 1993 || {{Increase}}252.3 || {{Increase}}4,571.2 || {{Increase}}49.5 || {{Increase}}897.2 || 2.9% || 11.0% || {{IncreaseNegative}}10.9% || n/a |- | 1994 || {{Increase}}268.5 || {{Increase}}4,769.3 || {{Increase}}54.6 || {{Increase}}968.9 || 4.2% || 9.0% || {{IncreaseNegative}}11.1% || n/a |- | 1995 || {{Increase}}286.4 || {{Increase}}4,972.8 || {{Increase}}63.3 || {{Increase}}1,098.1 || 4.5% || 9.4% || {{IncreaseNegative}}11.2% || n/a |- | 1996 || {{Increase}}305.9 || {{Increase}}5,202.5 || {{Increase}}71.1 || {{Increase}}1,209.5 || 4.9% || 7.1% || {{DecreasePositive}}9.5% || n/a |- | 1997 || {{Increase}}329.6 || {{Increase}}5,484.2 || {{Increase}}79.8 || {{Increase}}1,327.4 || 5.9% || 6.2% || {{DecreasePositive}}8.7% || n/a |- | 1998 || {{Increase}}358.5 || {{Increase}}5,847.5 || {{Increase}}89.2 || {{Increase}}1,455.0 || 7.5% || 5.0% || {{DecreasePositive}}8.0% || 73.8% |- | 1999 || {{Increase}}385.7 || {{Increase}}6,161.6 || {{Increase}}95.0 || {{Increase}}1,518.2 || 6.1% || 3.7% || {{DecreasePositive}}7.7% || {{DecreasePositive}}72.4% |} </onlyinclude> <onlyinclude> {| class="wikitable mw-collapsible mw-collapsed" style="text-align:center; width:100%;" !colspan=9 style="background:#f2f2f2;"|'''2000s''' |- ! Year !! GDP<br><small>(bn US$ PPP)</small> !! GDP per capita<br><small>(US$ PPP)</small> !! GDP<br><small>(bn US$ nominal)</small> !! GDP per capita<br><small>(US$ nominal)</small> !! GDP growth<br><small>(real)</small> !! Inflation<br><small>(%)</small> !! Unemployment<br><small>(%)</small> !! Government debt<br><small>(% of GDP)</small> |- | 2000 || {{Increase}}415.7 || {{Increase}}6,495.1 || {{Increase}}104.8 || {{Increase}}1,636.8 || 5.4% || 2.8% || {{IncreaseNegative}}9.0% || {{DecreasePositive}}71.7% |- | 2001 || {{Increase}}440.0 || {{Increase}}6,738.6 || {{Decrease}}102.3 || {{Decrease}}1,566.2 || 3.5% || 2.4% || {{DecreasePositive}}8.8% || {{IncreaseNegative}}79.1% |- | 2002 || {{Increase}}461.1 || {{Increase}}6,923.8 || {{Decrease}}90.3 || {{Decrease}}1,355.3 || 3.2% || 2.3% || {{IncreaseNegative}}10.1% || {{IncreaseNegative}}85.8% |- | 2003 || {{Increase}}485.2 || {{Increase}}7,135.9 || {{Decrease}}85.2 || {{Decrease}}1,252.4 || 3.2% || 3.4% || {{IncreaseNegative}}11.3% || {{IncreaseNegative}}97.1% |- | 2004 || {{Increase}}518.7 || {{Increase}}7,484.3 || {{Decrease}}82.9 || {{Decrease}}1,195.6 || 4.1% || 8.2% || {{DecreasePositive}}10.5% || {{DecreasePositive}}96.5% |- | 2005 || {{Increase}}558.8 || {{Increase}}7,904.4 || {{Increase}}94.1 || {{Increase}}1,331.4 || 4.5% || 8.7% || {{IncreaseNegative}}11.5% || {{IncreaseNegative}}98.3% |- | 2006 || {{Increase}}615.5 || {{Increase}}8,525.1 || {{Increase}}112.9 || {{Increase}}1,563.7 || 6.8% || 4.3% || {{DecreasePositive}}10.9% || {{DecreasePositive}}85.9% |- | 2007 || {{Increase}}677.0 || {{Increase}}9,197.8 || {{Increase}}137.1 || {{Increase}}1,862.2 || 7.1% || 10.9% || {{DecreasePositive}}9.2% || {{DecreasePositive}}76.3% |- | 2008 || {{Increase}}739.3 || {{Increase}}9,831.2 || {{Increase}}170.8 || {{Increase}}2,271.2 || 7.2% || 11.7% || {{DecreasePositive}}8.7% || {{DecreasePositive}}66.8% |- | 2009 || {{Increase}}778.8 || {{Increase}}10,127.7 || {{Increase}}198.3 || {{Increase}}2,578.9 || 4.7% || 16.2% || {{IncreaseNegative}}9.4% || {{IncreaseNegative}}69.5% |} </onlyinclude> <onlyinclude> {| class="wikitable mw-collapsible mw-collapsed" style="text-align:center; width:100%;" !colspan=9 style="background:#f2f2f2;"|'''2010s''' |- ! Year !! GDP<br><small>(bn US$ PPP)</small> !! GDP per capita<br><small>(US$ PPP)</small> !! GDP<br><small>(bn US$ nominal)</small> !! GDP per capita<br><small>(US$ nominal)</small> !! GDP growth<br><small>(real)</small> !! Inflation<br><small>(%)</small> !! Unemployment<br><small>(%)</small> !! Government debt<br><small>(% of GDP)</small> |- | 2010 || {{Increase}}828.8 || {{Increase}}10,530.5 || {{Increase}}230.0 || {{Increase}}2,922.8 || 5.1% || 11.7% || {{DecreasePositive}}9.2% || {{IncreaseNegative}}69.6% |- | 2011 || {{Increase}}860.9 || {{Increase}}10,694.4 || {{Increase}}247.7 || {{Increase}}3,077.3 || 1.8% || 11.1% || {{IncreaseNegative}}10.4% || {{IncreaseNegative}}72.8% |- | 2012 || {{Increase}}958.7 || {{Increase}}11,620.1 || {{Increase}}278.8 || {{Increase}}3,379.0 || 2.2% || 8.7% || {{IncreaseNegative}}12.4% || {{IncreaseNegative}}73.8% |- | 2013 || {{Increase}}992.0 || {{Increase}}11,726.0 || {{Increase}}288.0 || {{Increase}}3,404.3 || 3.3% || 6.9% || {{IncreaseNegative}}13.0% || {{IncreaseNegative}}84.0% |- | 2014 || {{Decrease}}985.3 || {{Decrease}}11,350.9 || {{Increase}}305.6 || {{Increase}}3,520.4 || 2.9% || 10.1% || {{IncreaseNegative}}13.4% || {{IncreaseNegative}}85.1% |- | 2015 || {{Increase}}1,064.2 || {{Increase}}11,957.7 || {{Increase}}332.1 || {{Increase}}3,731.2 || 4.4% || 11.0% || {{DecreasePositive}}12.9% || {{IncreaseNegative}}88.3% |- | 2016 || {{Decrease}}1,057.1 || {{Decrease}}11,616.3 || {{Increase}}332.5 || {{Decrease}}3,653.7 || 4.3% || 10.2% || {{DecreasePositive}}12.7% || {{IncreaseNegative}}96.8% |- | 2017 || {{Increase}}1,062.3 || {{Decrease}}11,158.3 || {{Decrease}}236.5 || {{Decrease}}2,484.5 || 4.1% || 23.5% || {{DecreasePositive}}12.2% || {{IncreaseNegative}}103.0% |- | 2018 || {{Increase}}1,145.4 || {{Increase}}11,796.5 || {{Increase}}250.3 || {{Increase}}2,577.3 || 5.3% || 20.9% || {{DecreasePositive}}10.9% || {{DecreasePositive}}92.5% |- | 2019 || {{Increase}}1,230.7 || {{Increase}}12,444.2 || {{Increase}}302.3 || {{Increase}}3,057.0 || 5.6% || 13.9% || {{DecreasePositive}}8.6% || {{DecreasePositive}}84.2% |} </onlyinclude> <onlyinclude> {| class="wikitable mw-collapsible" style="text-align:center; width:100%;" !colspan=9 style="background:#f2f2f2;"|'''2020s''' |- ! Year !! GDP<br><small>(bn US$ PPP)</small> !! GDP per capita<br><small>(US$ PPP)</small> !! GDP<br><small>(bn US$ nominal)</small> !! GDP per capita<br><small>(US$ nominal)</small> !! GDP growth<br><small>(real)</small> !! Inflation<br><small>(%)</small> !! Unemployment<br><small>(%)</small> !! Government debt<br><small>(% of GDP)</small> |- | 2020 || {{Increase}}1,290.0 || {{Increase}}12,823.3 || {{Increase}}364.0 || {{Increase}}3,618.5 || 3.6% || 5.7% || {{DecreasePositive}}8.3% || {{IncreaseNegative}}89.6% |- | 2021 || {{Increase}}1,388.3 || {{Increase}}13,529.9 || {{Increase}}402.8 || {{Increase}}3,925.8 || 3.3% || 4.5% || {{DecreasePositive}}7.3% || {{IncreaseNegative}}93.5% |- | ''2022'' || ''{{Increase}}1,562.4'' || ''{{Increase}}14,927.5'' || ''{{Increase}}435.6'' || ''{{Increase}}4,162.1'' || ''5.9%'' || ''7.5%'' || ''{{DecreasePositive}}6.9%'' || ''{{IncreaseNegative}}94.0%'' |- | ''2023'' || ''{{Increase}}1,690.5'' || ''{{Increase}}15,834.8'' || ''{{Increase}}450.4'' || ''{{Increase}}4,218.5'' || ''5.0%'' || ''11.0%'' || ''{{Steady}}6.9%'' || ''{{DecreasePositive}}89.6%'' |- | ''2024'' || ''{{Increase}}1,826.9'' || ''{{Increase}}16,777.4'' || ''{{Increase}}489.0'' || ''{{Increase}}4,490.6'' || ''5.5%'' || ''7.4%'' || ''{{Steady}}6.9%'' || ''{{DecreasePositive}}88.2%'' |- | ''2025'' || ''{{Increase}}1,971.8'' || ''{{Increase}}17,752.9'' || ''{{Increase}}535.8'' || ''{{Increase}}4,824.4'' || ''5.8%'' || ''7.4%'' || ''{{DecreasePositive}}6.8%'' || ''{{DecreasePositive}}86.1%'' |- | ''2026'' || ''{{Increase}}2,127.9'' || ''{{Increase}}18,782.3'' || ''{{Increase}}584.9'' || ''{{Increase}}5,162.9'' || ''5.8%'' || ''7.4%'' || ''{{DecreasePositive}}6.6%'' || ''{{DecreasePositive}}83.6%'' |- | ''2027'' || ''{{Increase}}2,298.2'' || ''{{Increase}}19,888.2'' || ''{{Increase}}638.1'' || ''{{Increase}}5,522.3'' || ''5.9%'' || ''7.4%'' || ''{{DecreasePositive}}6.4%'' || ''{{DecreasePositive}}80.7%'' |}</onlyinclude> == Capital flows == === International trade === Egypt’s international trade has long been a central pillar of its economy, constituting 40% of its GDP according to the [[World Bank]]. Over the years, the country has pursued greater economic integration through a series of free trade agreements, including those with the EU-Egypt Association Agreement and the [[African Continental Free Trade Area]] (AfCFTA).<ref name=trade-lloyd>{{cite web | url=https://www.lloydsbanktrade.com/en/market-potential/egypt/trade-profile#:~:text=In%202022%2C%20Egypt's%20main%20export,4.2%25%20%2D%20data%20Comtrade). | title=Egypt - Trade Profile | publisher=Lloyds Bank Trade | access-date=28 February 2025 }}</ref> The association agreement with the [[EU]], in force since 2004, established a free-trade area by eliminating tariffs on industrial goods and facilitating agricultural trade. A subsequent agreement in 2010 expanded this arrangement to processed agricultural and fisheries products. The gradual reduction of customs duties has significantly strengthened economic ties, with bilateral trade between the EU and Egypt more than doubling from €11.8 billion in 2004 to €27.9 billion in 2017.<ref name=gafi>{{cite web | url=https://www.gafi.gov.eg/English/Sectors/Pages/Trade-Agreements.aspx | title=Trade Agreements | publisher=General Authority for Investment and Free Zones (GAFI) | access-date=28 February 2025 }}</ref> The [[Pan-Arab Free Trade Area]] (PAFTA), signed by 17 [[Arab League]] members in 1981 and implemented in 1997, aims to enhance trade among Arab states by eliminating non-tariff barriers and gradually reducing tariffs. Originally planned to achieve full tariff removal by 2007, an Arab League summit in 2002 accelerated this timeline, establishing a zero-tariff trade zone by 2005 while granting preferential treatment to the least developed member states.<ref name=gafi/> Egypt's participation in the [[AfCFTA]] is expected to enhance its trade with African markets, expanding beyond its traditional partners in [[Europe]] and the [[Middle East]]. As part of the Guided Trade Initiative (GTI), Egypt is working to accelerate integration, with sectors such as renewable energy, pharmaceuticals, and textiles identified as potential areas of growth. While logistical challenges exist, Egypt’s established industrial base and supply chain networks may support greater regional trade and economic cooperation.<ref>{{cite web | url=https://gfmag.com/economics-policy-regulation/egypt-africa-afcfta-trade-pacts/ | title=Egypt’s Role in Africa’s AfCFTA Trade Pacts | publisher=Global Finance | access-date=28 February 2025 }}</ref> Egypt also benefits from [[Qualifying industrial zone|Qualified Industrial Zones]] (QIZs), which grant tariff-free access to [[U.S.]] markets for exports meeting predefined rules of origin. These zones offer cost advantages, exemption from non-tariff barriers, and access to Egypt’s large labor pool, attracting both local and foreign investors. Initially established in [[Alexandria]], the [[Suez Canal]], [[Greater Cairo]], and the [[Nile Delta|Central Delta]], the program has since expanded to [[Minya, Egypt|Minya]] and [[Beni Suef]].<ref name=gafi/> [[Petroleum]] and [[natural gas]] have historically dominated both exports and imports, reflecting the country’s role as a regional energy hub. In addition to hydrocarbons, Egypt exports a diverse range of goods, including [[textiles]], [[fertilizers]], [[plastics]], and agricultural products.<ref name=trade-lloyd/> Imports, meanwhile, are characterized by a high demand for intermediate and investment goods, reflecting the needs of the country’s industrial and infrastructure sectors. Essential commodities such as [[iron]], [[steel]], [[plastics]], [[wheat]], and [[pharmaceuticals]] also constitute a substantial share of inbound trade.<ref name=trade-lloyd/> Egypt's exports have seen significant growth in the past years, reaching $51.1 billion in 2023.<ref name="OEC2023" /> The Egyptian government has set a target to increase exports to $145 billion by 2030. A new export support program, expected to launch in early 2026, will focus on boosting competitiveness by enhancing the value of Egyptian products and offering incentives for small companies and start-ups. This system, alongside the settlement of overdue dues, aims to address challenges faced by exporters, ensuring fair support distribution and fostering investment<ref>{{cite news | url=https://english.ahram.org.eg/NewsContent/50/1202/538582/AlAhram-Weekly/Economy/New-support-for-exports.aspx | title=New support for exports | date=11 March 2024 | access-date=27 February 2025 }}</ref> === Remittances === Remittances from Egyptians working abroad constitute a key source of hard currency for the Egyptian economy. The Minister of Emigration and Expatriate Affairs reported that the number of Egyptians living abroad has increased more than fivefold since 2013, rising from 2.7 million in 2013 to 14 million in 2023<ref name=remittances-ar>{{cite web | url=https://www.arab-reform.net/publication/bigger-than-the-ras-al-hikma-deal-egyptian-remittances-and-the-reliability-of-the-egyptian-economy/ | title=Bigger Than the Ras al-Hikma Deal: Egyptian Remittances and the Reliability of the Egyptian Economy | publisher=Arab Reform Initiative | access-date=28 February 2025 }}</ref> and according to the [[Central Bank of Egypt]] (CBE), remittances reached $23.7 billion between January and October 2024, reflecting a 45.3% increase from $16.3 billion during the same period in 2023. <ref name=remittances-dne>{{cite news | url=https://www.dailynewsegypt.com/2024/12/24/egypts-remittances-hit-23-7bn-in-10m-2024-marking-45-3-growth/ | title=Egypt’s Remittances Hit $23.7bn in 10M 2024, Marking 45.3% Growth | publisher=Daily News Egypt | date=24 December 2024 | access-date=28 February 2025 }}</ref> Remittances recorded a decline during 2022/2023, when inflows dropped to $22.1 billion from a peak of $31.9 billion in 2021/2022, figures rebounded in 2024. This was attributed to global disruptions from the [[COVID-19 pandemic]], exchange rate volatility, and geopolitical factors, including the [[Russian-Ukrainian war]]. The March 2024 economic measures, particularly the liberalization of exchange rates and increased interest rates on Egyptian pound and dollar-denominated savings instruments, played a key role in restoring remittance inflows to the formal banking system.<ref name=remittances-dne/> As a result of this recovery, Egypt has moved from sixth to fifth place globally among the top remittance-receiving countries, ranking behind India, Mexico, China, and the Philippines. The sustained rise in remittances underscores their continued importance to Egypt’s economy and highlights the impact of recent economic policies on foreign currency inflows.<ref name=remittances-dne/> The Egyptian government considers remittances from Egyptians abroad vital to the economy and aims to sustain their growth as part of its broader economic strategy. To that end, the government has introduced various measures to attract remittances, including offering dollar savings certificates with some of the highest interest rates globally, according to the Minister of Emigration and Expatriate Affairs. These efforts aim to bolster foreign currency inflows and integrate remittances into the formal banking system.<ref name=remittances-ar/> Additional incentives include customs exemptions for cars imported for personal use, requiring a foreign currency deposit refundable in Egyptian pounds after five years at the prevailing exchange rate. The government has also introduced a final exemption from compulsory conscription for draft evaders or male students abroad over the age of 18, available for a fee of $5,000 or €5,000. Furthermore, the state has promoted real estate sales in foreign currency, offering land and property to Egyptians abroad and foreign investors.<ref name=remittances-ar/> According to a study by the [[International Organization for Migration]], most remittance-receiving households use the funds for daily expenses, but 20% portion is invested in real estate, small businesses, and other economic activities.<ref name="egypt.iom.int">{{cite web|url=http://www.egypt.iom.int/Doc/IOM%20Migration%20and%20Development%20in%20Egypt%20Facts%20and%20Figures%20(English).pdf|title=Migration and Development in Egypt|publisher=International Organization for Migration Cairo|access-date=2 December 2015|archive-date=5 February 2011|archive-url=https://web.archive.org/web/20110205011709/http://www.egypt.iom.int/Doc/IOM%20Migration%20and%20Development%20in%20Egypt%20Facts%20and%20Figures%20(English).pdf|url-status=dead}}</ref> === Suez Canal === {{Main|Suez Canal}} [[File:Capesize bulk carrier at Suez Canal Bridge.JPG|thumb|right|Vessel transiting through the [[Suez Canal]]]] The [[Suez Canal]], a vital maritime passageway linking the [[Mediterranean Sea]] to the [[Red Sea]], has played a crucial role in global trade since its completion in 1869. Constructed under the direction of [[Ferdinand de Lesseps]], the canal provided a direct shipping route between [[Europe]] and [[Asia]], significantly reducing travel time by bypassing the lengthy voyage around the [[Cape of Good Hope]]. Over the decades, the canal has undergone multiple expansions to accommodate the growing volume of global maritime trade. In 2021, more than 20,600 vessels passed through the canal, with an average of 56 ships per day.<ref>{{cite web|title=Number of ships passing through the Suez Canal from 1976 to 2021|url=https://www.statista.com/statistics/1252568/number-of-transits-in-the-suez-cana-annually/|publisher=Statista|date=31 March 2022}}</ref> To enhance its capacity, the Egyptian government launched an expansion project in 2014, widening key sections of the canal and nearly doubling its capacity from 49 to 97 ships per day.<ref name="SuezExpansion">{{cite news |title=New Suez Canal project proposed by Egypt to boost trade |url=http://www.caironews.net/index.php/sid/224460353 |access-date=7 August 2014 |publisher=Cairo News |archive-date=29 November 2014 |archive-url=https://web.archive.org/web/20141129022814/http://www.caironews.net/index.php/sid/224460353|url-status=live}}</ref> The [[Suez Canal Area Development Project#New Suez Canal|New Suez Canal]], inaugurated in 2015, introduced a parallel shipping lane and deepened sections of the original canal to accommodate larger vessels. The expansion aimed to reduce transit times from 18 to 11 hours and significantly cut waiting periods for ships. The project, costing about $8 billion,<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2015-08-05/egypt-opens-8-billion-new-suez-canal-boosting-el-sisi | title=Egypt Opens $8 Billion New Suez Canal, Boosting El-Sisi | publisher=Bloomberg | date=5 August 2015 | access-date=28 February 2025 }}</ref> was financed exclusively through domestic investment, with Egyptians contributing via bank certificates of deposit yielding 12%, later raised to 15.5%.<ref>{{cite web|url=https://www.youm7.com/story/2017/5/23/ممثل-هيئة-قناة-السويس-للبرلمان-زيادة-فائدة-شهادات-قناة-السويس/3249990|title=ممثل هيئة قناة السويس للبرلمان: زيادة فائدة شهادات قناة السويس لـ15.5%|date=23 May 2017|website=اليوم السابع|access-date=4 March 2019|archive-date=24 September 2018|archive-url=https://web.archive.org/web/20180924024920/https://www.youm7.com/story/2017/5/23/%D9%85%D9%85%D8%AB%D9%84-%D9%87%D9%8A%D8%A6%D8%A9-%D9%82%D9%86%D8%A7%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D9%8A%D8%B3-%D9%84%D9%84%D8%A8%D8%B1%D9%84%D9%85%D8%A7%D9%86-%D8%B2%D9%8A%D8%A7%D8%AF%D8%A9-%D9%81%D8%A7%D8%A6%D8%AF%D8%A9-%D8%B4%D9%87%D8%A7%D8%AF%D8%A7%D8%AA-%D9%82%D9%86%D8%A7%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D9%8A%D8%B3/3249990|url-status=live}}</ref> The [[Armed Forces Engineering Authority (Egypt)|Armed Forces Engineering Authority]] played a major role in the excavation and construction of the expansion, which was completed in just one year.<ref>{{cite web|url=https://www.youm7.com/story/2015/3/19/القوات-المسلحة-تسابق-الزمن-لإنهاء-مشروع-قناة-السويس-الجديدة-إنجاز/2111209|title=القوات المسلحة تسابق الزمن لإنهاء مشروع قناة السويس الجديدة.. إنجاز 215 مليون متر مكعب من أعمال الحفر بنسبة 93.5% من المستهدف..وتكريك 102 مليون متر|date=19 March 2015|website=اليوم السابع|access-date=4 March 2019|archive-date=24 September 2018|archive-url=https://web.archive.org/web/20180924030320/https://www.youm7.com/story/2015/3/19/%D8%A7%D9%84%D9%82%D9%88%D8%A7%D8%AA-%D8%A7%D9%84%D9%85%D8%B3%D9%84%D8%AD%D8%A9-%D8%AA%D8%B3%D8%A7%D8%A8%D9%82-%D8%A7%D9%84%D8%B2%D9%85%D9%86-%D9%84%D8%A5%D9%86%D9%87%D8%A7%D8%A1-%D9%85%D8%B4%D8%B1%D9%88%D8%B9-%D9%82%D9%86%D8%A7%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D9%8A%D8%B3-%D8%A7%D9%84%D8%AC%D8%AF%D9%8A%D8%AF%D8%A9-%D8%A5%D9%86%D8%AC%D8%A7%D8%B2/2111209|url-status=live}}</ref> Beyond its role as a maritime corridor, the Suez Canal has become an economic hub, with the establishment of the [[Suez Canal#Suez Canal Economic Zone|Suez Canal Economic Zone]] (SCZONE). Encompassing 461 km² across [[Port Said]], [[Ismailia]], and [[Suez]], the SCZONE offers zero customs rates to attract foreign investment. Major infrastructure projects within the zone focus on the development of [[East Port Said Industrial Zone|East Port Said]] and [[Ain Sokhna]], with planned expansions to West Port Said, El-Adabiya, Arish, and El Tor.<ref>{{cite web|title=Suez Canal Economic Zone|url=http://www.gafi.gov.eg/English/MediaCenter/News/Pages/Suez06-1-2016.aspx|website=GAFI|publisher=Ministry of Investment, Egypt|language=en|date=6 January 2016|access-date=10 May 2018|archive-date=27 April 2018|archive-url=https://web.archive.org/web/20180427215447/http://www.gafi.gov.eg/English/MediaCenter/News/Pages/Suez06-1-2016.aspx|url-status=live}}</ref> This initiative is part of a broader effort to transform the canal into a global trade and logistics center, with Egypt aiming to attract $30 billion in investment within five years.<ref>{{cite news|title=Egypt aims to attract $30 bln in investment in Suez Canal Zone within 5 years: Investment minister|url=http://english.ahram.org.eg/NewsContent/3/12/274195/Business/Economy/Egypt-aims-to-attract--bln-in-investment-in-Suez-C.aspx|work=Ahram Online|date=25 July 2017|language=en|access-date=10 May 2018|archive-date=11 May 2018|archive-url=https://web.archive.org/web/20180511145559/http://english.ahram.org.eg/NewsContent/3/12/274195/Business/Economy/Egypt-aims-to-attract--bln-in-investment-in-Suez-C.aspx|url-status=live}}</ref> The canal remains a critical global trade route, setting a record annual revenue of $9.4 billion in the fiscal year ending June 2023.<ref>{{Cite news |date=21 June 2023 |title=Suez Canal annual revenue hits record $9.4 billion, chairman says |language=en |work=Reuters |url=https://www.reuters.com/world/africa/suez-canal-annual-revenue-hits-record-94-bln-chairman-2023-06-21/ |access-date=15 August 2023}}</ref> == Exchange rate policies == {{Further|Egyptian pound}}In the 19th century, Egypt's currency system was based on the piastre (qersh), subdivided into 40 para. Although formally equal to its Ottoman counterpart after the 1840 Turkish-Egyptian treaty, the Egyptian piastre was typically valued higher, leading to disparities in exchange, such as 10 Egyptian piastres equaling 11 Turkish piastres around the mid-19th century,.<ref name="denzelegp" /> Egypt adopted a bimetallic standard in 1834, basing its system on the [[Maria Theresa thaler]], known as ''abu taqa'' in Egypt, which was valued at 20 piastres. The 1830s saw the introduction of new gold and silver coins, yet foreign coins like the British sovereign continued to circulate at unofficial rates.<ref name="denzelegp" />{{multiple image | width = 230 | direction = vertical | image1 = 200 EGP obverse 2010-1-2.jpg | class1 = bg-transparent | image2 = 200 EGP reverse 2010-1-2.jpg | class2 = bg-transparent | footer = A 200 Egyptian pound note }} The 1885 currency reform led to the adoption of the gold standard, introducing the [[Egyptian pound]] (jeneih) at E£1 = 7.4375 grams of fine gold.<ref name=denzelegp>{{cite book |last=Denzel |first=Markus A. |title=Handbook of World Exchange Rates, 1590–1914 |chapter=Egypt (1869–1914) |publisher=Routledge |year=2010 |pages=599–607 |isbn=9780754603566 |url=https://www.taylorfrancis.com/chapters/mono/10.4324/9781315253664-53/egypt-1869%E2%80%931914-1-markus-denzel}}</ref><ref>{{cite web |url=https://en.wikisource.org/wiki/Page:Statesman%27s_Year-Book_1899_American_Edition.djvu/1478 |title=Statesman's Year-Book 1899 American Edition – page 178 |website=en.wikisource.org |date=1899 |access-date=2022-07-03 |archive-date=2022-07-03 |archive-url=https://web.archive.org/web/20220703083120/https://en.wikisource.org/wiki/Page%3AStatesman%27s_Year-Book_1899_American_Edition.djvu/1478 |url-status=live }}</ref> Pegged to the [[British gold sovereign]], it maintained an exchange value of 97.5 piastres per pound sterling, replacing the Egyptian piastre (qersh) as the primary currency unit.<ref name="denzelegp" /> This reform standardized foreign exchange rates by law and adjusted the [[Maria Theresa thaler]] to 21 piastres, while 20 piastres equaled 5 French francs.<ref name=denzelegp/> With the outbreak of [[World War I]], Egypt abandoned the gold standard and pegged its currency to the [[British pound]] at a fixed rate, which remained until 1962 when it shifted to the [[U.S. dollar]].<ref>{{cite news | url=https://www.entrepreneur.com/en-ae/news-and-trends/the-impact-of-egypts-currency-devaluation-on-its-local/476269 | title=The Impact Of Egypt's Currency Devaluation On Its Local Startups | date=28 June 2024 | access-date=27 February 2025 }}</ref> In 1969, Egypt adopted a multiple exchange rate system to address two key challenges.<ref name=exchangerate>{{cite web |url=https://erf.org.eg/app/uploads/2017/04/Mohieldin_Kouchouk.pdf |title=ON EXCHANGE RATE POLICY: THE CASE OF EGYPT 1970-2001|last=Mohieldin |first=M. |last2=Kouchouk |first2=A. |publisher=Ministry of Foreign Trade |date=December 2002 |access-date=1 March 2025}}</ref> It helped mitigate the negative effects of an overvalued currency on external competitiveness while also managing the country's heavy reliance on workers’ remittances.<ref name=exchangerate/> By the 1980s, external shocks, including declining oil prices and rising debt, exposed the vulnerabilities of Egypt's economy. The government attempted exchange rate liberalization in 1987, reducing multiple exchange rates from five to three, implementing a gradual devaluation, and establishing a free exchange market. However, these measures proved insufficient due to Egypt's continued dependence on external revenues from oil, the [[Suez Canal]], and remittances, and by the early 1990s, Egypt faced mounting fiscal deficits, inflation, and a [[balance of payments crisis]]. In response, the Economic Reform and Structural Adjustment Program was launched in 1991, backed by the [[IMF]] and [[World Bank]]. This program sought to unify exchange rates, liberalize trade, and reduce state intervention. The Egyptian pound was pegged to the U.S. dollar, supported by tight fiscal policies and high-interest rates. While this approach stabilized inflation and attracted capital inflows, it led to a gradual overvaluation of the currency, reducing competitiveness and straining foreign exchange reserves.<ref name=exchangerate/> The late 1990s and early 2000s saw growing pressure on the fixed exchange rate system due to external shocks, including the [[1997 Asian financial crisis]] and declining oil prices.<ref name=exchangerate/> By 2003, Egypt adopted a [[managed float]], allowing greater currency flexibility while still maintaining central bank interventions.<ref>{{cite web |title=Should MENA Countries Float or Peg?|author=Abdelali Jbili and Vitali Kramarenko|date=March 2003 |publisher=International Monetary Fund |url=https://www.imf.org/external/pubs/ft/fandd/2003/03/jbil.htm |access-date=1 March 2025}}</ref> However, persistent trade imbalances and political instability following the [[Egyptian Revolution of 2011|2011 revolution]] led to renewed currency pressures. A foreign exchange black market sprung up, and by 2016, Egypt was forced to implement a full float of the pound under an IMF-backed reform program. The sharp devaluation that followed improved Egypt's external balance but also led to inflationary pressures.<ref>{{cite news | url=https://www.nytimes.com/2016/11/04/world/middleeast/egypt-currency-pound-float-imf.html | title=Egypt Floats Currency, Appeasing I.M.F. at Risk of Enraging Poor | date=3 November 2016 | access-date=1 March 2025 }}</ref> Despite claims by the [[Central Bank of Egypt]] that the currency remained free-floating, reports indicated that by 2018 the central bank was actively using state-owned banks to manage the pound’s value, effectively returning to a controlled exchange rate.<ref name=exchangerate2>{{cite news | url=https://timep.org/2022/06/07/egypts-next-imf-loan-how-to-avoid-the-failures-of-the-past-six-years/ | title=Egypt’s Next IMF Loan: How to Avoid the Failures of the Past Six Years | date=7 June 2022 | access-date=1 March 2025 }}</ref> During the [[COVID-19 pandemic]] the country faced increasing pressure to allow further currency depreciation, skepticism grew over the long-term sustainability of these measures and their implications for economic stability.<ref name=exchangerate2/> The [[COVID-19 pandemic|pandemic]] severely impacted the country's primary sources of foreign currency, particularly tourism and the oil and gas industry.<ref name=exchangerate3>{{cite news | url=https://www.trade.gov/market-intelligence/egypts-foreign-currency-crisis | title=Egypt’s Foreign Currency Crisis | date= | access-date=1 March 2025 }}</ref> Although both sectors began recovering in 2022, they struggled to return to pre-pandemic revenue levels by 2023 when the outbreak of [[Russia-Ukraine war|war in Ukraine]] further strained Egypt's economic position, as Russian and Ukrainian tourists, who form a substantial portion of Egypt’s visitor base, were largely absent.<ref name=exchangerate3/> Additionally, the conflict led to sharp increases in global commodity prices, particularly wheat, which Egypt imports in large quantities. These factors contributed to a broader [[currency crisis|economic crisis]] characterized by a resurgence of the black market due to a shortage of U.S. dollars and other hard currencies.<ref name=exchangerate3/> In 2024, Egypt addressed its latest [[currency crisis]] by floating the pound once again, abandoning both implicit and tacit measures to support the currency.<ref name="intro1"/> This lead to a depreciation of nearly 40% and a was followed by a record 600-basis-point interest rate hike. These measures facilitated an expanded $8 billion [[IMF]] loan, part of a broader $20 billion support package from [[European Union]], the [[World Bank]], [[Japan]] and the [[UK]].<ref name="intro1"/> The currency stabilized and investor confidence improved, with Moody’s upgrading Egypt’s credit outlook and local stocks rallying. A pivotal element in this recovery was Egypt’s $35 billion investment deal with the [[UAE]] for the development of [[Ras El Hekma]], the largest foreign investment in the country’s history.<ref name="intro1"/> == Natural resources == === Arable land === {{Further|Khedivial Agricultural Society}} {{multiple image | width = 150 | image1 = Egypt Agricultural Expansion - Before (50309315062).png | class1 = bg-transparent | image2 = Egypt Agricultural Expansion - Before (50309330057).png | class2 = bg-transparent | footer = Satellite images depicting the reclamation of desert landscapes on the outskirts of the [[Nile Delta]] into agricultural land, before (left) and after (right). }} Practically all Egyptian agriculture takes place in some {{convert|42,000|km2|e6acre|abbr=off}} of fertile soil in the Nile Valley and Delta,<ref>{{cite news |title=Cabinet says cultivated lands up in 2024 to 10 million feddans |url=https://www.sis.gov.eg/Story/194723/Cabinet-says-cultivated-lands-up-in-2024-to-10-million-feddans?lang=en-us |publisher=State Information Service (Egypt) |date=2024-02-26 |access-date=2025-02-27}}</ref> with the rest of the country being primarily desert.<ref name=ipi-report>{{cite web | url=https://www.ipipotash.org/publications/eifc-269 | title=Country Report on Egyptian Agriculture and Summary of IPI Experiments | website=International Potash Institute (IPI) | publisher=IPI | date=March 2013 | access-date=2025-04-22 }}</ref> Egypt’s generally favorable climate allows for the cultivation of multiple crops annually, with most fields producing two crops per year and some vegetable areas reaching a cropping index of 300 percent.<ref name=ipi-report/> Since 2009, the growing issue of [[desertification]] has emerged as a significant challenge.<ref>{{Cite web|url=https://www.thenewhumanitarian.org/news/2011/07/11/desertification-threat-local-food-production|title=Desertification threat to local food production|date=11 July 2011|website=The New Humanitarian}}</ref> To address this, as well its limited arable land and growing population, Egypt has long pursued land reclamation, with efforts dating back to the 1930s. Since then, 2.6 million [[feddan]] have been reclaimed, increasing agricultural land by 44%.<ref>{{cite news | url=https://sis.gov.eg/Story/162017/New-Delta-project?lang=en-us | title=New Delta project | access-date=1 March 2025 }}</ref> The latest initiative aims to reclaim 4.5 million feddan by 2027, nearly half of Egypt’s existing cultivated land. The largest of these projects, the New Delta Project, spans 2.2 million feddan, the project accounts for about 25% of the country’s historically reclaimed agricultural lands. The Future of Egypt, the first phase of this initiative, covers 1 million feddan and includes an industrial zone for agricultural industries.<ref>{{cite news | url=https://english.ahram.org.eg/NewsContent/1/2/523526/Egypt/Society/President-Sisi-inaugurates--harvest-season-at-%E2%80%98Fut.aspx | title=President Sisi inaugurates harvest season at ‘Future of Egypt’ project | date=7 February 2024 | access-date=1 March 2025 }}</ref> [[File:ISS049-E-33726 - View of Egypt.jpg|thumb|right|[[Center-pivot irrigation]] in the [[Sharq El Owainat]] project]] To provide water for the project, Egypt constructed the [[New Delta Wastewater Treatment Plant]], the largest of its kind globally, as a key component of the country’s strategy to expand agricultural land and enhance water security.<ref name=treatmentplant>{{cite news | url=https://www.metito.com/news-detail/egypts-new-delta-treatment-plant-sets-four-guinness-world-records-revolutionizing-and-setting-unprecedented-agriculture-and-environmental-preservation-standards/ | title=Egypt’s New Delta Treatment Plant Sets Four Guinness World Records | date=29 March 2023 | access-date=1 March 2025 }}</ref> With a daily capacity of 7.5 million m³, the plant supports irrigation efforts and mitigates pollution in [[Lake Mariout]] and the Mediterranean Sea.<ref name=treatmentplant/> Additionally, the [[New Valley Project|Toshka Project]], initiated in the 1990s, was revived under President El-Sisi’s administration. This initiative aims to reclaim 1.5 million feddan<ref>{{cite news | url=https://english.ahram.org.eg/News/491770.aspx | title=Egypt racing against time to add 3.5 mln feddans of agricultural land, says Sisi | date=15 March 2023 | access-date=1 March 2025 }}</ref> in the [[Western Desert]] using water from [[Lake Nasser]], transported via the Sheikh Zayed Canal.<ref>{{cite news | url=https://wilo.com/en/Pioneering/Stories/Toshka-reclaiming-land-for-sustainable-use-_28417.html | title=Toshka: reclaiming land for sustainable use | access-date=1 March 2025 }}</ref> Acquisition and ownership of desert land in Egypt is governed by the [[Egyptian Desert Land Law]] (Law No. 143 of 1981). It defines desert land as the land two kilometers outside the border of the city.<ref>{{cite web |url=https://www.gafi.gov.eg/English/StartaBusiness/Laws-and-Regulations/Documents/LandandRealEstateOwnershipLaws.pdf |title=Land and Real Estate Ownership Laws |publisher=General Authority for Investment and Free Zones (GAFI) |access-date=2025-04-22 }}</ref> === Water resources === {{Main|Water resources management in modern Egypt}} [[File:Aswan Nile R21.jpg|thumb|The [[Nile]] river at [[Aswan]].]] "Egypt", wrote the Greek historian [[Herodotus]] 25 centuries ago, "is the gift of the Nile".<ref name=fanack-water>{{cite web |url=https://water.fanack.com/egypt/water-resources-in-egypt/ |title=Water Resources in Egypt |website=Fanack Water |date=June 5, 2024 |access-date=2025-04-22 }}</ref> Due to the country's arid climate and minimal rainfall, the vast majority of Egypt’s population and agricultural activity is concentrated along the [[Nile Valley]] and [[Nile Delta]].<ref name=lakenasser>{{cite journal |last1=El-Shirbeny |first1=M.A. |last2=Abutaleb |first2=K.A. |title=Monitoring of Water-Level Fluctuation of Lake Nasser Using Altimetry Satellite Data |journal=Earth Systems and Environment |volume=2 |issue=3 |pages=367–375 |year=2018 |doi=10.1007/s41748-018-0053-y |url=https://www.kau.edu.sa/Files/902888/Files/159810_201802-paper14.pdf |access-date=2025-04-22 }}</ref> The Nile Valley in Egypt is a narrow, elongated corridor of fertile land that cuts through an otherwise arid and hyper-arid landscape. Bordered by vast desert plateaus to the east and west, the valley forms a ribbon of greenery stretching from the Sudanese border in the south to the Nile Delta in the north.<ref name=lakenasser/> To manage its limited water resources, Egypt constructed the [[Aswan High Dam]], completed in 1970, which created [[Lake Nasser]], one of the world’s largest artificial reservoirs with a total storage capacity of 130 billion m³. The dam plays a critical role in regulating Nile flows, enabling year-round irrigation, and mitigating flood and drought cycles.<ref name=lakenasser/> With a fixed annual release of 55.5 billion m³ (1.96 trillion cu ft), as stipulated by the 1959 Nile Waters Agreement between Egypt and Sudan,<ref name=ipi-report/> it constitutes 97 percent of the country's renewable water resources.<ref name=fanack-water/> Facing increasing water scarcity and rising demand, Egypt has adopted treated wastewater reuse as a strategic component of its national water management policy.<ref name=wastewatertreatment>{{cite journal |last1=Ahmed |first1=Ahmed Khaled Abdella |last2=Shalaby |first2=Moussa |last3=Negim |first3=Osama |last4=AbdelWahed |first4=Talaat |title=Comparative Study of the Egyptian Code for Reusing Treated Wastewater for Agriculture |journal=Sohag Engineering Journal |volume=2 |issue=1 |date=March 2022 |pages=1–14 |url=https://sej.journals.ekb.eg/article_217170_c1e33a0d75efb0cfd884c88b29ede019.pdf }}</ref> The volume of wastewater produced in Egypt is approximately 16.4 billion m³ annually, comprising 4.4 billion m³ of municipal sewage and 12 billion m³ of agricultural drainage water.<ref>{{cite web |url=https://www.trade.gov/country-commercial-guides/egypt-water-and-environment |title=Egypt - Water and Environment |website=Country Commercial Guides |publisher=International Trade Administration |date=2022-08-08 |access-date=2025-04-22}}</ref> As of recent estimates, Egypt operates over 400 wastewater treatment plants employing a range of technologies including activated sludge, oxidation ponds, up-flow anaerobic sludge blankets, and membrane bioreactors. Treated wastewater is primarily reused for agricultural irrigation.<ref name=wastewatertreatment/> Rainfall in Egypt is minimal, with significant precipitation occurring only along the [[North coast of Egypt|north coast]], where annual averages range between 50 and 250 millimetres.<ref name=fanack-water/> Rainfall increases eastward, reaching about 150 mm in [[Arish]] and 250 mm in [[Rafah, Egypt|Rafah]]. Based on average winter precipitation, the volume of rainwater falling over the northern regions of Egypt, which cover an area of approximately 200,000 km², is estimated at 5 to 10 billion m³ per year.<ref name=fanack-water/> Of this, about 1.5 billion m³ contributes to surface runoff, while most of the remainder evaporates or percolates into the groundwater system.<ref name=fanack-water/> In the Sinai Peninsula, surface runoff from rainfall amounts to approximately 131.67 million m³ per year, constituting 5.25% of total rainfall there. Only 200–300 million m³ are effectively harvested in regions such as Sinai, the north coast, and the Red Sea mountains.<ref name=fanack-water/> ==== Desalination ==== Desalination plays a growing role in Egypt's water strategy, particularly in coastal areas lacking conventional freshwater sources. Although seawater contains high salinity levels of up to 35,000 ppm, modern desalination technologies can produce high-quality drinking water.<ref name=fanack-water/> However, the process remains costly, with expenses influenced by the type of energy, technology used, and project scale. Egypt currently operates 90 desalination plants with a combined capacity of 1.3 billion m³ annually, built at a cost of $0.4 billion. Of these, 76 are fully operational, producing 850,000 m³ per day.<ref name=fanack-water/> Egypt has launched an ambitious long-term desalination strategy aimed at addressing chronic water scarcity by significantly expanding its desalination capacity. Under this national plan, the country seeks to quadruple its seawater desalination output through the construction of 21 new plants. These proposed facilities will collectively add 3.3 million m³ per day, alleviating pressure on the Nile. In a subsequent phase, Egypt plans to boost total desalination capacity by an additional 8.8 million m³ per day, with a projected investment of $8 billion.<ref>{{cite web |url=https://www.fluencecorp.com/state-of-desalination-in-egypt/ |title=The State of Desalination in Egypt |website=Fluence Corporation |date=2023 |access-date=2025-04-22}}</ref> ==== Groundwater ==== {{Also|Nubian Sandstone Aquifer System}} Egypt's groundwater resources consist of both renewable and non-renewable aquifers. Renewable groundwater is primarily drawn from two shallow reservoirs associated with the [[Nile River]] system: the Nile Valley aquifer, with reserves estimated at 200 billion m³, and the Delta aquifer, with reserves of about 400 billion m³.<ref name=fanack-water/> As of 2017, an estimated 7.2 billion m³ of groundwater was extracted annually, with the Delta aquifer accounting for approximately 85 percent of this total. This extraction rate remains below the estimated safe limit of 7.5 billion m³ per year, according to the Groundwater Research Institute.<ref name=fanack-water/> Groundwater quality in these regions is generally high, with salinity levels ranging from 300 to 800 parts per million in the southern Delta.<ref name=fanack-water/> Non-renewable groundwater sources are located in the deeper aquifer systems of the [[Eastern Desert|Eastern]] and [[Western Desert (Egypt)|Western Desert]] and the [[Sinai Peninsula]].<ref name=fanack-water/> The most significant among them is the [[Nubian Sandstone Aquifer System]],<ref name=fanack-water/> the world's largest known [[fossil water]] [[aquifer]] system. This vast underground reservoir, located beneath the eastern end of the [[Sahara]] desert, extends across the political boundaries of four northeastern African countries.<ref>[http://www-naweb.iaea.org/napc/ih/Nubian/IHS_nubian.html International Atomic Energy Agency: NSAS Project] {{webarchive|url=https://web.archive.org/web/20071020163247/http://www-naweb.iaea.org/napc/ih/Nubian/IHS_nubian.html |date=2007-10-20 }}</ref> The system spans approximately 2.2 million km², with about 826,000 km² located in Egypt, nearly 40% of the total area and the largest share among the four countries, covering over 80% of the country's land surface.<ref>{{cite journal |last=Hamad |first=Salah |title=Characterization and management evaluation of the Nubian Sandstone Aquifer in Tazerbo wellfield of the Libyan man-made river project |journal=Applied Water Science |volume=12 |issue=7 |date=July 2022 |doi=10.1007/s13201-022-01684-6 |url=https://www.researchgate.net/publication/360754649_Characterization_and_management_evaluation_of_the_nubian_sandstone_aquifer_in_Tazerbo_wellfield_of_the_Libyan_man-made_river_project |access-date=25 April 2025|doi-access=free }}</ref> Estimates of its total freshwater volume are as high as 500,000 billion m³.<ref>{{cite journal |last1=Hosseini |first1=Zohreh |last2=Raeisi |first2=Ezzat |last3=Abdollahifard |first3=Iraj |last4=Teatini |first4=Pietro |title=Comprehensive hydrogeological study of the Nubian aquifer System, Northeast Africa |journal=Journal of Hydrology |volume=636 |date=June 2024 |pages=131237 |doi=10.1016/j.jhydrol.2024.131237 |url=https://www.sciencedirect.com/science/article/abs/pii/S0022169424006322 |access-date=25 April 2025}}</ref> Due to the depth of the aquifer and associated extraction costs, current withdrawals in Egypt are limited to approximately 0.6 billion m³ annually, primarily for irrigation in land reclamation projects. Sustainable extraction is projected to increase to 2.5–3 billion m³ per year in the future, contingent on cost-effective pumping technologies.<ref name=fanack-water/> === Mineral and energy resources === {{See|Mining industry of Egypt}} {{See|Energy in Egypt}} [[File:Darfeel plat.png|thumb|An offshore platform in the Darfeel Gas Field]] Egypt possesses substantial mineral wealth, spanning both petroleum and non-petroleum resources. The country has deposits of gold, copper, iron ore, phosphate, uranium, tantalum, manganese, chromium, coal, zinc, lead, tin, and black sand minerals such as ilmenite, zircon, rutile, and magnetite<ref name=minerals>{{cite news |url=https://www.intellinews.com/egypt-s-mineral-wealth-shifting-away-from-oil-and-gas-dependence-321266/ |title=Egypt's mineral wealth: shifting away from oil and gas dependence |date=2024-04-23 |work=bne IntelliNews |access-date=2025-04-22}}</ref> It also produces abundant industrial materials like granite, marble, limestone, white sand, kaolin, and feldspar.<ref name=minerals/> These resources are primarily located in the [[Red Sea Governorate|Eastern Desert]], [[Western Desert]], [[Sinai Peninsula]], and Alaqa Valley.<ref name=minerals/> The Eastern Desert hosts over 1,000 ancient mining sites, including Egypt’s largest gold mine, [[Sukari mine|Sukari]], which began production in 2009 and has since produced over 5 million ounces of gold. Egypt's gold exports reached $1.63 billion in 2022.<ref name=minerals/> The country’s known reserves include 3.1 billion metric tons of iron ore near [[Aswan]], 48 million tons of tantalite in [[South Sinai]], and 16 million tons of coal in [[North Sinai]].<ref name=minerals/> Uranium is found in the Eastern Desert and Sinai, with estimated reserves of 1,900 metric tons.<ref name=minerals/> Manganese deposits at Um Bogma are estimated at 1.7 million tons, and copper reserves are about 1.6 million tons. The country also holds an estimated 700,000 tons of tin.<ref name=minerals/> Petroleum remains a cornerstone of Egypt's economy, accounting for approximately 25% of GDP. As of late 2023, Egypt had proven oil reserves of 3.1 billion barrels, with production around 559,000 barrels per day, and natural gas reserves of 2.1 trillion cubic meters, producing 175 million cubic meters per day.<ref name=minerals/> Recent legislative reforms, such as the Mineral Resources Law No. 198 of 2014 and Executive Regulations No. 108 of 2020, have modernized the investment climate.<ref name=minerals/> These laws eliminated profit-sharing requirements, simplified licensing, and introduced tax incentives.<ref name=minerals/> Egypt aims to increase mining’s contribution to GDP from 0.5% in 2021 to 5% by 2040, raising annual sector exports from $1.6 billion in 2020 to $10 billion.<ref name=minerals/> The government has set a target of $1 billion in annual mining investments by 2030.<ref name=minerals/> == Main economic sectors == === Agricultural sector === {{About|agriculture in modern Egypt|agriculture in ancient Egypt|Ancient Egyptian agriculture}} ==== Irrigation ==== [[File:Agricultural_output_Egypt.svg|thumb|Development of agricultural output of Egypt in 2015 US$ since 1961]] Irrigation plays a major role in a country the very livelihood of which depends upon a single river, the Nile. The most ambitious of all irrigation projects was the Aswan High Dam, completed in 1971. A report from the National Council for Production and Economic Affairs in March 1975 reflected the dam's success in regulating floodwaters and providing a reliable water supply. However, it was noted that water consumption had exceeded expectations, and measures to control this were being considered. Some fertile land was lost due to the cessation of the flow of Nile silt, and increasing salinity presented challenges. Additionally, a period of drought in the [[Ethiopian Highlands|Ethiopia highlands]], the source of the Nile's waters, caused the level of Lake Nasser, the dam's reservoir, to reach its lowest point in 1987.<ref>{{Cite web |last=Ross |first=Michael |date=1987-12-26 |title=Parched Egypt Watches Anxiously as Waters Behind Aswan Dam Recede |url=https://www.latimes.com/archives/la-xpm-1987-12-26-mn-7439-story.html |access-date=2025-02-08 |website=Los Angeles Times |language=en-US}}</ref><ref>{{Cite web |last=Mesfin |first=Meja |date=January 2020 |title=Assessing the Challenges of Irrigation Development in Ethiopia: A Review |url=https://www.researchgate.net/publication/341870910 |website=Research Gate}}</ref> In the 1970s, despite considerable investments in land reclamation, agriculture gradually lost its place as the primary sector of the economy. Agricultural exports, which accounted for 87% of Egypt’s merchandise export value in 1960, had declined to 35% by 1974 and 11% by 2001.<ref>Tellioglu, Isin, and Panos Konandreas. 2017. Agricultural Policies, Trade and Sustainable Development in Egypt. Geneva: International Centre for Trade and Sustainable Development (ICTSD) and Rome: United Nations Food and Agriculture Organization (FAO).</ref> As of the 2020s, agriculture accounts for approximately 10% of Egypt’s GDP and provides employment for 18% of the labor force.<ref name=participation/><ref name="CIAWFEG"/> In 2010 Egypt's fertile area totaled about {{convert|3.6|e6ha|e6acre|abbr=off}}, about one-quarter of which has been reclaimed from the desert after the construction of the Aswan High Dam.<ref name=faoun>{{cite web |title=Country profile – Egypt (Version 2016) |url=http://www.fao.org/3/i9729en/I9729EN.pdf |publisher=Food and Agriculture Organization of the United Nations |access-date=6 June 2018}}</ref> The government aims to increase this number to 4.8 million hectares by 2030 through additional land reclamation.<ref name=faoun/> Even though only 3 percent of the land is arable, it is extremely productive and can be cropped two or even three times annually. However, the reclaimed lands only add 7 percent to the total value of agricultural production.{{citation needed|date=June 2018}} [[Surface irrigation]] is forbidden by law in reclaimed lands and is only used in the Nile Valley and the Delta, the use of [[irrigation sprinkler|pressurized irrigation]] and [[drip irrigation|localized irrigation]] is compulsory in other parts of the country.<ref name=faoun/> Most land is cropped at least twice a year, but agricultural productivity is limited by salinity which in 2011 affected 25% of irrigated agriculture to varying degrees.<ref name=faoun/> This is mainly caused by insufficient drainage as well as seawater intrusion in [[aquifer]]s as a result of over-extraction of [[groundwater]], the latter primarily affects the [[Nile Delta]].<ref name=faoun/> Thanks to the installation of drainage systems a reduction in salinized areas from about 1.2 million hectares in 1972 to 900 000 hectares in 2010 was achieved.<ref name=faoun/> ==== Crops ==== [[File:حقول القمح بمحافظة قنا قرية حجازة قبلي.jpg|thumb|A [[wheat]] field in [[Qena Governorate|Qena]], Egypt]] According to [[List of largest producing countries of agricultural commodities|2022 statistics]] from the Food and Agriculture Organization of the United Nations, Egypt is the world's largest producer of [[date palm|dates]] and [[artichokes]]; the second largest producer of [[Ficus|figs]] and [[broad beans|fava beans]]; the third largest producer of [[onions]], [[eggplant]]s, and [[cuniculture|rabbit]] meat; the fourth largest producer of [[strawberry|strawberries]], [[garlic]], [[buffalo meat|buffalo]] and [[goose]] meat as well as the fifth largest producer of [[buffalo milk]], tomatoes and [[watermelon]].<ref>{{Cite web |title=Egypt: main crops by production volume 2021 |url=https://www.statista.com/statistics/1063560/egypt-main-crops-by-production-volume/ |access-date=2024-06-28 |website=Statista |language=en}}</ref> Cotton has long been a primary exported cash crop, but it is no longer vital as an export. Egypt is a substantial producer of wheat, maize, [[sugarcane]], fruit and vegetables, [[fodder]],<ref name="IbrahimIbrahim2003">{{cite book|first1=Fouad N.|last1=Ibrahim|first2=Barbara|last2=Ibrahim|title=Egypt: An Economic Geography|url=https://books.google.com/books?id=rdyv_lA95aUC&pg=PA133|date=5 December 2003|publisher=I.B.Tauris|isbn=978-1-86064-548-8|pages=133–}}</ref> and rice; but also needs to import significant quantities of wheat and maize, primarily from Ukraine and Russia, despite yield increases since 1970. This is largely due to high domestic demand, driven by subsidies and a [[Egyptian cuisine#Bread|culinary preference]] for bread, alongside Egypt’s limited arable land and a focus on cultivating high-value export crops such as vegetables. Egypt exports rice but this can vary periodically based on government regulations, which are influenced by water and land use considerations.{{Citation needed|date=February 2025}} {| class="wikitable" |+ Egypt's Production, Imports and Total Consumption of Wheat and Corn (Maize)<br /> (thousand metric tons and fiscal years) |- style="background:#ccc;" | Item || 2011 || 2012 || 2013 || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 |- style="text-align:right;" | style="background:#a1f4bb; text-align:center;"|'''Wheat''' || colspan="12"| |- style="text-align:right;" | style="background:#ddd; text-align:left;"| Production || 8,400 || 8,500 || 8,250 || 8,300 || 8,100 || 8,100 || 8,450 || 8,450 || 8,770 || 8,900 || 9,000 || 9,800 |- style="text-align:right;" | style="background:#ddd; text-align:left;"| Imports || 11,650 || 8,400 || 10,150 || 11,300 || 11,925 || 11,181 || 12,407 || 12,354 || 12,811 || 12,149 || 12,000 || 11,000 |- style="text-align:right;" | style="background:#ddd; text-align:left;"| Total consumption || 18,600 || 18,700 || 18,500 || 19,100 || 19,200 || 19,400 || 19,800 || 20,100 || 20,300 || 20,600 || 20,500 || 20,600 |- style="text-align:right;" | style="background:#fedcba; text-align:center;"| '''Maize''' || colspan="12"| |- style="text-align:right;" | style="background:#ddd; text-align:left;"| Production || 5,500 || 5,800 || 5,800 || 5,960 || 6,000 || 6,000 || 6,400 || 6,800 || 6,400 || 6,400 || 7,440 || 7,440 |- style="text-align:right;" | style="background:#ddd; text-align:left;"| Imports || 7,154 || 5,059 || 8,791 || 7,839 || 8,722 || 8,773 || 9,464 || 9,367 || 10,432 || 9,633 || 9,200 || 9,200 |- style="text-align:right;" | style="background:#ddd; text-align:left;"| Total consumption || 11,700 || 12,000 || 13,200 || 13,900 || 14,850 || 15,100 || 15,900 || 16,200 || 16,900 || 16,400 || 16,400 || 16,400 |- style="font-size:smaller; text-align:left;" | colspan="13" | '''Sources''': <ref name="Wheat production">{{Cite web |url=https://www.indexmundi.com/agriculture/?country=eg&commodity=wheat&graph=production |title=Egypt Wheat Production by Year |website=Index Mundi |publisher=Index Mundi |access-date=2025-04-17}}</ref> <ref name="Wheat imports">{{Cite web |url=https://www.indexmundi.com/agriculture/?country=eg&commodity=wheat&graph=imports |title=Egypt Wheat Imports by Year |website=Index Mundi |publisher=Index Mundi |access-date=2025-04-17}}</ref> <ref name="Wheat consumption">{{Cite web |url=https://www.indexmundi.com/agriculture/?country=eg&commodity=wheat&graph=domestic-consumption |title=Egypt Wheat Domestic Consumption by Year |website=Index Mundi |publisher=Index Mundi |access-date=2025-04-17}}</ref> <ref name="Maize production">{{Cite web |url=https://www.indexmundi.com/agriculture/?country=eg&commodity=corn&graph=production |title=Egypt Maize Production by Year |website=Index Mundi |publisher=Index Mundi |access-date=2025-04-17}}</ref> <ref name="Maize imports">{{Cite web |url=https://www.indexmundi.com/agriculture/?country=eg&commodity=corn&graph=imports |title=Egypt Maize Imports by Year |website=Index Mundi |publisher=Index Mundi |access-date=2025-04-17}}</ref> <ref name="Maize consumption">{{Cite web |url=https://www.indexmundi.com/agriculture/?country=eg&commodity=corn&graph=domestic-consumption |title=Egypt Maize Domestic Consumption by Year |website=Index Mundi |publisher=Index Mundi |access-date=2025-04-17}}</ref> |} [[File:Flowers Harvest.jpg|thumb|Flower production.]] Land is worked intensively and yields are high. Increasingly, modern techniques are applied to producing fruits, vegetables and flowers, in addition to cotton, for export. Further improvement is possible. The most common traditional farms occupy {{convert|1|acre|ha|order=flip}} each, typically in a canal-irrigated area along the banks of the Nile. Many small farmers also own cows, [[Domestic buffalo|water buffalo]]s, and chickens. Between 1953 and 1971, some farms were [[collective farming|collectivised]], especially in [[Upper Egypt]] and parts of the [[Nile Delta]]. [[Cactus|Cacti]], particularly [[cactus pears]], are widely cultivated across Egypt, including Sinai, and extend into neighboring countries. Introduced during the [[Columbian Exchange]], they have become a significant crop in the region.<ref name="Woodfin-2012">{{cite book | last=Woodfin | first=Edward C. | title=Camp and Combat on the Sinai and Palestine Front : The experience of the British Empire Soldier, 1916{{emdash}}18 | publisher=[[Palgrave Macmillan]] | publication-place=Houndmills, [[Basingstoke]], Hampshire, & [[New York City]] | year=2012 | isbn=978-0-230-30376-8 | oclc=779244382 | pages=xix+220}}</ref> The government exercises a strong degree of control over agriculture, usually through financial incentives and export bans, not only to ensure the best use of irrigation water but also to confine the planting of water intensive crops like cotton in favor of food grains. However, the government's ability to achieve this objective is limited by [[crop rotation]]al constraints.<ref>Klausz, Jesse. "Economy of Egypt." Lecture.</ref> ==== Land ownership ==== [[File:Egyptian Countryside R02.jpg|thumb|Farmland in the Egyptian countryside]] The agrarian reform law of 1952 provided that no one might hold more than 200 [[feddan]]s, that is, {{convert|84|ha|acre}} (1 Egyptian feddan=0.42 hectares=1.038 acres), for farming, and that each landholder must either farm the land himself or rent it under specified conditions. Up to 100 additional feddans might be held if the owner had children, and additional land had to be sold to the government. In 1961, the upper limit of landholding was reduced to 100 feddans, and no person was allowed to lease more than 50 feddans. Compensation to the former owners was in bonds bearing a low rate of interest, redeemable within 40 years. A law enacted in 1969 reduced landholdings by one person to 50 feddans.{{Citation needed|date=January 2021}}<ref>{{Cite web |last=Seyam G.M., El Bilassi A.O. |date=1995 |title=Land tenure structure in Egyptian agriculture: Changes and impacts |url=https://om.ciheam.org/om/pdf/b09/CI950935.pdf |website=CIHEAM |pages=50–64}}</ref> By the mid-1980s, 90% of all land titles were for holdings of less than five feddans ({{convert|2.1|ha|acre|abbr=off}}), and about 300,000 families, or 8% of the rural population, had received land under the agrarian reform program. According to a 1990 agricultural census, there were some three million small land holdings, almost 96% of which were under five feddans. As these small landholdings restricted the ability of farmers to use modern machinery and agricultural techniques that improve and take advantage of [[economies of scale]], there have since the late 1980s been many reforms attempting to deregulate agriculture by liberalizing input and output prices and eliminating crop area controls. As a result, the gap between world and domestic prices for Egyptian agricultural commodities has been closed.<ref>{{cite book |last=Moshrif |first=R. |title=Long-term Land Inequality and Post-Colonial Land Reform in Egypt (1896–2020) |publisher=World Inequality Lab |series=Working Paper 2025/07 |date=April 2025 |page=14 |language=en}}</ref> ==== Climate change ==== {{excerpt|Climate change in Egypt|Agriculture}} === Industrial sector === ==== Chemical products ==== [[File:Edfu 23.JPG|thumb|An industrial complex near [[Edfu]].]] The chemical industry in Egypt is one of the country’s largest, comprising seven key subsectors: plastics, rubber, paper, detergents, paints, miscellaneous chemicals, fertilizers, and glass. The petrochemical segment alone accounts for approximately 12% of Egypt's industrial output.<ref>{{cite web | url=https://www.investinegypt.gov.eg/english/pages/exploremap.aspx?secId=105 | title=Investment Map of Egypt | publisher=Invest in Egypt | access-date=27 February 2025 }}</ref> The sector is forecast to generate $9 billion in exports by the end of 2024, with growth supported by abundant raw materials and foreign investments. The government aims to enhance competitiveness by focusing on infrastructure, technological advancements, and export incentives. The sector also benefits from Egypt’s participation in regional trade agreements, helping to further expand its export market and strengthen its global position.<ref>{{cite web | url=https://www.arabfinance.com/News/newdetails/14935 | title=Chemical Industry: Transforming Egypt’s Economy | publisher=Arab Finance | access-date=27 February 2025 }}</ref> Abu Qir Fertilizers Company is one of Egypt and the [[MENA]] region's largest nitrogen fertilizer producers, accounting for nearly 50% of Egypt's nitrogen fertilizer output. Established in 1976, its first ammonia-urea production facility is located in Abu Qir, 20 kilometers east of Alexandria. Egypt Basic Industries Corporation (EBIC) is also a leading ammonia producer in the country.<ref name="Viktorov 2021 k485">{{cite web | last=Viktorov | first=Andrey | title=Abu Qir Fertilizers plans to revamp one of its urea plants | website=Fertilizer Daily | date=April 27, 2021 | url=https://www.fertilizerdaily.com/20210428-abu-qir-fertilizers-plan-to-reavamp-one-of-its-urea-plants/ | access-date=January 6, 2024}}</ref> ==== Consumer electronics and home appliances ==== Egypt's consumer electronics and home appliance industry has witnessed significant expansion, driven by government initiatives and foreign investments. The "Egypt Makes Electronics" initiative, launched in 2015, aims to localize manufacturing, reduce imports, and boost exports. It has attracted major players like [[Samsung]], [[Hisense]], [[Beko]], and [[Haier]], who have established production facilities in Egypt, benefiting from tax incentives and golden licenses. The country’s strategic location, competitive labor costs, and growing consumer market have positioned it as a key regional manufacturing and export hub.<ref name=electronics>{{cite web |title=Where we stand on Egypt’s plans to localize electronics manufacturing |url=https://enterprise.press/industries/where-we-stand-on-egypts-plans-to-localize-electronics-manufacturing/ |website=Enterprise |access-date=27 February 2025}}</ref><ref name=appliances>{{cite web |title=International investment heats up Egypt’s home appliances sector |url=https://enterprise.news/egypt/en/news/story/38b5c5b6-12da-4675-8d04-d24da127f663/international-investment-heats-up-egypt%25e2%2580%2599s-home-appliances-sector |website=Enterprise |access-date=27 February 2025}}</ref> The home appliance industry, valued at EGP 126.7 billion in 2021, is seeing increased localization, with some manufacturers already sourcing 70% of components domestically. The mobile phone segment has also expanded, with brands like [[Vivo (technology company)|Vivo]], [[Infinix]], and [[Oppo]] setting up local factories. However, challenges persist, particularly in accessing raw materials, navigating bureaucratic hurdles, and securing timely export subsidies. The easing of foreign currency restrictions and policy adjustments have alleviated some constraints, fostering a more favorable investment climate.<ref name=electronics/><ref name=appliances/> [[Electrolux]], which entered the Egyptian market by acquiring local Olympic Group, also aims to expand its market share and boost exports, capitalizing on the strong local presence of its brands, particularly [[Zanussi]] and Olympic Electric.<ref>{{cite news |title=Electrolux Group decides to retain its business in Egypt with plans to drive growth and exports |url=https://www.zawya.com/en/press-release/companies-news/electrolux-group-decides-to-retain-its-business-in-egypt-with-plans-to-drive-growth-and-exports-mrsk6nm0 |publisher=Zawya |date=2025-02-25 |access-date=2025-02-27}}</ref> Despite challenges, Egypt’s electronics and home appliance sector continues to grow, with international investors increasingly viewing it as a reliable manufacturing base. Rising local production has reduced import dependency while creating jobs and strengthening supply chains. If current trends continue, with improvements in raw material availability and regulatory efficiency, Egypt could solidify its role as a leading producer and exporter in the region’s electronics and home appliance market.<ref name=electronics/><ref name=appliances/> ==== Gold ==== [[File:Marsa Alam - Red Sea.jpg|thumb|Sukari gold mine]] Gold mining in Egypt's [[Red Sea Governorate|Red Sea region]] has developed into a fast-growing industry, driven by vast untapped reserves. In an effort to establish a modern mining sector, the Egyptian government launched its first international bid round, awarding mineral concessions to attract investment. This marked a significant shift in policy, encouraging private sector participation in a historically state-dominated industry. Among the early participants were [[AngloGold Ashanti]] and [[Alexander Nubia International]], both of which reported promising technical results in their exploration efforts.<ref>{{cite news|last=Mariaan|first=Webb|title=AngloGold and JV partner to accelerate exploration in Egypt|url=http://www.miningweekly.com/article/anglogold-and-jv-partner-to-accelerate-exploration-in-egypt-2011-04-20|access-date=7 September 2012|newspaper=Mining Weekly|date=20 April 2011|archive-date=28 December 2011|archive-url=https://web.archive.org/web/20111228033911/http://www.miningweekly.com/article/anglogold-and-jv-partner-to-accelerate-exploration-in-egypt-2011-04-20|url-status=dead}}</ref><ref>{{cite news|last=Balashov|first=Sergei|title=Northland says Alexander Nubia's Hamama project has significant potential|url=http://www.proactiveinvestors.com/companies/news/30758/northland-says-alexander-nubias-hamama-project-has-significant-potential-30758.html|access-date=7 September 2012|newspaper=Proactive Investors|date=20 June 2012}}</ref> The [[Sukari mine]], located in the Sukari Hills near [[Marsa Alam]], became Egypt’s first large-scale modern gold production facility. The government granted a concession to [[Centamin]] in 2005, awarding the company an exploitation lease covering 160 square kilometers. Sukari quickly became Egypt’s largest gold mining operation, representing a turning point in the country’s efforts to commercialize its gold resources.<ref>{{cite web|url=http://www.businesstodayegypt.com/article.aspx?ArticleID=7689|first=Tom|last=Gara|date=October 2007|title=The Great Egyptian Gold Rush|work=Business Today Egypt|url-status=dead|archive-url=https://web.archive.org/web/20071211221850/http://www.businesstodayegypt.com/article.aspx?ArticleID=7689|archive-date=11 December 2007}}</ref> Egypt has launched a sweeping modernization drive to raise the mining sector’s GDP contribution to 5–6% by 2030. Reforms include transforming the Mineral Resources Authority into an economic entity, removing bureaucratic hurdles, and introducing new investment models for gold extraction, all intended to attract investment and align regulations with global standards.<ref>{{cite news | url=https://www.miningmagazine.com/africa/news-analysis/4401327/egypt-goes-gold | title=Egypt Goes Gold: Mining Sector Reforms | publisher=Mining Magazine | date=22 February 2024 | access-date=28 February 2025 }}</ref> As part of this effort, a Digital Mining Platform is set to launch in early 2025 to boost transparency, streamline licensing, and enhance investor engagement through digital tools.<ref>{{cite news | url=https://www.miningmagazine.com/africa/news-analysis/4401327/egypt-goes-gold | title=Egypt Goes Gold: Mining Sector Reforms | publisher=Mining Magazine | date=22 February 2024 | access-date=28 February 2025 }}</ref> These reforms have driven a surge in gold exports, which nearly doubled to $2.17 billion in the first nine months of 2024, up from $1.11 billion during the same period in 2023. With continued government backing, Egypt aims to rank among the world’s top 10 gold exporters by 2027.<ref name=gold-xin>{{cite news | url=https://english.news.cn/20241217/f6a7cbe3c21d4d99893d6572e10c5f8e/c.html | title=Egypt’s Gold Industry Sees Strong Growth in Exports | publisher=Xinhua | date=17 December 2024 | access-date=28 February 2025 }}</ref> ==== Iron and steel ==== Egypt's iron and steel industry has played a crucial role in the nation's economic development, with a history dating back to 1936. Over the decades, the sector has expanded through state-owned enterprises and private firms, becoming a key driver of industrial growth and employment. In 2022, Egypt emerged as Africa’s leading steel producer, second-largest in [[MENA]] and [[List of countries by steel production|20th]] globally, with an output of 9.8 million tons.<ref name=steel>{{Cite web |title=Egypt’s steel: a flourishing industry with future potential |url=https://www.zawya.com/en/economy/north-africa/egypts-steel-a-flourishing-industry-with-future-potential-cmlch9kw |access-date=2025-02-27 |website=Zawya}}</ref> [[EZDK]] is the largest steel company in Egypt and the Middle East, today part of Ezz Industries. It owns four steel plants in [[Alexandria]], [[Sadat (city)|Sadat]], [[Suez]] and [[10th of Ramadan (city)|10th of Ramadan]]. It was ranked 77th on the list of the world's largest steel companies by the World Steel Association in 2020, with a production of 4.57 million tons.<ref>{{Cite web |title=Top Producers |url=https://worldsteel.org/steel-by-topic/statistics/top-producers/ |access-date=2022-04-12 |website=worldsteel.org |language=en-US}}</ref> In 2023 exports of reinforced steel surged more than threefold, reaching 1.54 million tons compared to 523,000 tons in the previous year. At the same time, crude steel production grew by 6% to 10.4 million tons, supported by increased exports, particularly in [[Rolling (metalworking)|hot-rolled coil]].<ref>{{Cite web |title=Egypt's Steel Exports Surge Threefold, Signaling Resilience Amidst Industry Challenges|url=https://www.businesstodayegypt.com/Article/1/4445/Egypt-s-Steel-Exports-Surge-Threefold-Signaling-Resilience-Amidst-Industry|access-date=2025-02-27 |website=Business Today Egypt}}</ref> Domestic consumption of steel products has steadily increased, reflecting the industry's importance to infrastructure and construction projects. However, the sector faces challenges, including outdated production technologies and competition from lower-cost imports, particularly from [[Turkey]], [[China]], and [[Ukraine]]. The government has implemented policies to support the industry, including trade protections and incentives to attract investment. Forecasts indicate a steady growth rate of 1.5% annually over the next decade, driven by Egypt’s expanding infrastructure projects and strategic geographic position as a trade hub.<ref name=steel/> ==== Motor vehicles==== {{See also|Automotive industry in Egypt}} [[File:MCV C127 EV, Busworld Europe 2023, Brussels (P1140238).jpg|thumb|right|The fully electric [[Manufacturing Commercial Vehicles|MCV]] C127 EV, made in Egypt for the German market]] [[El Nasr Automotive Manufacturing Company]], Egypt’s state-owned automaker, was established in 1960 in [[Helwan]] and began operations in 1962, producing vehicles under license from brands such as [[Zastava Automobili]], [[Daimler AG]], [[Kia Motors|Kia]], and [[Peugeot]].<ref name="Arab British Trade Directory 2018-2019">Arab British Trade Directory 2018-2019 https://issuu.com/bls-media/docs/arab-british_trade_directory_2017-1/79{{Dead link|date=October 2022 |bot=InternetArchiveBot |fix-attempted=yes }} 31 July 2018</ref> The company resumed production in 2024 after a 15-year hiatus, beginning with electric buses in partnership with China’s [[Yutong]].<ref name=nasr-relaunch>{{cite news |title=Al-Nasr automotive factory relaunches to revive Egypt's car industry |url=https://english.ahram.org.eg/NewsContent/50/1201/535559/AlAhram-Weekly/Egypt/AlNasr-automotive-factory-relaunches-to-revive-Egy.aspx |work=Al-Ahram Weekly |date=24 February 2025 |access-date=22 April 2025}}</ref> It markets three bus models under its own brand: Nasr Green,<ref>{{cite web |url=https://nasr.eg/wp-content/uploads/2025/03/%D9%85%D9%88%D8%A7%D8%B5%D9%81%D8%A7%D8%AA-%D8%A3%D8%AA%D9%88%D8%A8%D9%8A%D8%B3-%D9%86%D8%B5%D8%B1-%D8%AC%D8%B1%D9%8A%D9%86-%D8%B9%D9%84%D9%89-%D8%B4%D8%A7%D8%B3%D9%8A%D9%87-%D9%8A%D9%88%D8%AA%D9%88%D9%86%D8%AC-%D8%BA%D8%A7%D8%B2-%D8%B7%D8%A8%D9%8A%D8%B9%D9%89-%D9%85%D9%83%D9%8A%D9%81-NASR-GREEN.pdf |title=NASR GREEN Specifications |publisher=Al-Nasr Automotive Company |date=March 2025 |access-date=17 April 2025}}</ref> Nasr Sky,<ref>{{cite web |url=https://nasr.eg/wp-content/uploads/2025/03/%D9%85%D9%88%D8%A7%D8%B5%D9%81%D8%A7%D8%AA-%D9%86%D8%B5%D8%B1NASR-SKY-%D8%B3%D9%83%D8%A7%D9%89-%D9%8A%D9%88%D8%B1%D9%88-2.pdf |title=NASR SKY Specifications |publisher=Al-Nasr Automotive Company |date=March 2025 |access-date=17 April 2025}}</ref> and Nasr Star.<ref>{{cite web |url=https://nasr.eg/wp-content/uploads/2025/03/NASR-N30-Midi-Bus-Tech.-Specs-NASR-STAR.pdf |title=NASR STAR Specifications |publisher=Al-Nasr Automotive Company |date=March 2025 |access-date=17 April 2025}}</ref> The company plans to reintroduce passenger cars by the end of 2025, targeting an annual output of 20,000 vehicles.<ref name=nasr-relaunch/> Other major manufacturers include Arab American Vehicles, Egy-Tech Engineering, [[Ghabbour Group]], WAMCO, and [[Manufacturing Commercial Vehicles|MCV]], which has represented [[Mercedes-Benz]] since 1994 and operates a factory in [[El Salheya]] employing around 2,500 workers.<ref>[http://www.mcv-eg.com/mcv/Factory.html ''Factory''] {{webarchive|url=https://web.archive.org/web/20150613144914/http://www.mcv-eg.com/MCV/Factory.html |date=13 June 2015 }} MCV-Website. Retrieved 18. October 2015</ref> Egypt’s 2024–2030 automotive strategy aims to boost annual production to 400,000–500,000 vehicles, with 25% for export, targeting $4 billion in revenue. Local firms like Ezz Elarab Group and [[El Sewedy Electric]] have partnered with Indonesia’s [[Proton Holdings]], while [[Nissan|Nissan Motor Egypt]] plans to add new models. Chinese automaker Exeed, in partnership with Egyptian-German Automotive, has also begun local assembly in [[6th of October City]].<ref name=auto>{{cite web | url=https://english.ahram.org.eg/News/537157.aspx | title=All eyes on the car industry | publisher=Ahram Online | date=18 December 2024 | access-date=27 February 2025 }}</ref> A key component of the strategy is launching electric vehicle production in 2025 through partnerships with international firms. This includes integrating EVs into public transport via e-taxis and initiating trial production at [[El Nasr Automotive Manufacturing Company|Nasr Auto]]. Broader plans involve establishing automotive hubs and enhancing local component manufacturing to support both domestic and export growth.<ref name=auto/> ==== Personal care and pharmaceutical products ==== Established in 1939 with the founding of the Misr Company for Pharmaceutical Industries, Egypt's pharmaceutical sector is one of the nation's oldest strategic industries. Over the past two decades, the market has expanded fivefold, and as the healthcare system modernizes, the industry is expected to continue its growth trajectory, attracting multinational pharmaceutical companies focused on emerging markets.<ref>{{cite web |title=Pharmaceuticals |url=https://www.crowe.com/eg/industries/pharmaceuticals |website=Crowe Egypt |access-date=1 March 2025 }}</ref> Egypt has the largest pharmaceutical market in Africa, with an estimated value of $56.6 billion. The country plays a crucial role in global pharmaceutical supply chains, recording exports worth $400 million, underscoring the sector’s significance to the national economy. Despite this strong presence, Egypt’s pharmaceutical industry remains heavily import-dependent, with approximately 90% of the raw materials used in production sourced from abroad. Given the industry's relatively high level of complexity, there are substantial opportunities for Egypt to enhance its economic complexity by developing domestic pharmaceutical manufacturing and reducing reliance on imports.<ref>{{cite web |title=EGYPTIAN PHARMACEUTICAL INDUSTRY INVESTMENT ROUNDTABLE AND CLINICS|url=https://www.afdb.org/sites/default/files/documents/pharmaceutical_industry_investment_roundtable_cn_d.pdf|website=African Development Bank |access-date=1 March 2025 }}</ref> The number of pharmaceutical factories increased from 130 in 2015 to 170 in 2023, marking a 30.8% rise. Similarly, production lines expanded by 40%, growing from 500 in 2015 to 700 in 2022. In this period Egypt went from being the world's 47th largest pharmaceutical producer in 2015 to 29th in 2023.<ref>{{cite web |title=Pharmaceutical industries |url=https://arab-digital-economy.org/language/en/10220 |website=Arab Federation for Digital Economy |date=10 July 2024 |access-date=1 March 2025 }}</ref> The Egyptian [[Personal care products|beauty and personal care]] market has experienced significant growth, driven in part by a series of currency devaluations that have increased consumer preference for locally produced goods.<ref>{{cite web |title=Egypt Beauty & Cosmetics Market Overview |url=https://egybeautyafrica.com/about-market/ |website=Egypt Beauty Africa |access-date=1 March 2025 }}</ref> In 2025, the sector is expected to generate $7.6 billion in revenue,<ref>{{cite web |title=Beauty & Personal Care Market in Egypt |url=https://www.statista.com/outlook/cmo/beauty-personal-care/egypt |website=Statista |access-date=1 March 2025 }}</ref> with a projected [[compound annual growth rate]] of approximately 8.1% between 2024 and 2030. This positions Egypt as a key player in Africa’s expanding beauty industry, which is expected to reach nearly $70 billion in revenue by 2025.<ref>{{cite web |title=Beauty & Personal Care Market in Africa |url=https://www.statista.com/outlook/cmo/beauty-personal-care/africa |website=Statista |access-date=1 March 2025 }}</ref> ==== Textiles and clothing ==== [[File:Womans.jpg|thumb|Egyptian women working at a factory making medical clothes]] The textile industry is a key component of Egypt’s economy, accounting for approximately 12% of the country's export earnings and 3.4% of its gross national product as of 2023. It employs around 2.5 million people and includes one of the largest and most productive cotton and textile clusters in Africa. The entire production process, from cotton cultivation to finished garments, occurs domestically, with cotton comprising roughly 75% of natural fibre use. Egypt is internationally known for its extra-long staple cotton varieties, particularly Giza cotton, derived from [[Gossypium barbadense]].<ref name=egbd-textiles>{{cite web |title=The textile industry of Egypt |url=https://www.egypt-business.com/paper/details/2303-the-textile-industry-of-egypt/425541 |website=Egypt Business Directory |date=23 January 2023 |access-date=22 April 2025}}</ref> Egypt's apparel market was valued at approximately $17.04 billion in 2023, with women’s apparel comprising the largest segment at $7.58 billion. The market is projected to grow at an annual rate of 5.53% through 2028. Between 2014 and 2021, 6,740 textile companies were established, with issued capital totaling EGP 10.5 billion.<ref name=sewedy-textiles>{{cite web |title=Textile Sector in Egypt – Dec 2023 |url=https://elsewedydevelopment.com/case-studies/textile-sector-in-egypt-dec-2023/ |website=Elsewedy Industrial Development |access-date=21 April 2025}}</ref> Over 450 of these were established between 2016 and 2019 with foreign investment.<ref name=egbd-textiles/> The public sector accounts for 50% of spinning, 60% of knitting, and 60% of weaving, while the private sector dominates garment manufacturing with a 90% share.<ref name=sewedy-textiles/> [[El Mahalla El Kubra|Mahalla El Kobra]] serves as the center of Egypt’s textile production and is home to the state-owned [[Misr Spinning and Weaving Company]], which owns one of the largest spinning and weaving factories in the world. The sector includes approximately 6,500 textile-only factories among 85,000 establishments. Between 2011 and 2020, Egypt experienced a compound annual growth rate of 12% in textile exports. Major export destinations include the [[European Union]], [[Asia]], the [[Middle East]], and [[Africa]], with products such as denim, cotton yarns, and non-woven fabrics.<ref name=egbd-textiles/> === Energy sector === {{Main|Energy in Egypt}} ==== Electricity ==== {{Main|Electricity sector in Egypt}} [[File:Benban Solar Park.jpg|thumb|right|Benban Solar Park]] Egypt suffered [[Power outage|blackouts]] during the summer of 2014 that lasted for up to six hours per day. A rapid series of reforms cut energy subsidies, and Egypt quickly developed the [[Zohr gas field]] in the Mediterranean, which was discovered in 2015. The country now has an oversupply of electricity and aims to source 20% of its electricity from [[Renewable energy|renewables]] by 2022 and 55% by 2050.<ref name="auto2"/> As part of its renewable energy strategy, Egypt has undertaken large-scale projects like the [[Benban Solar Park]] and the Gabal El Zeit wind farm. Benban, located near Aswan, has a total capacity of 1650 MW and generates about 3.8 TWh annually, making it the fourth-largest solar power plant globally. Additionally, the Gabal El Zeit wind farm, costing €340 million, spans 100 square kilometers with 300 turbines, generating 580 MW of electricity.<ref name="One">{{cite web |access-date=23 April 2018 |location=Beijing |author=Forum on China-Africa Cooperation |url=http://allafrica.com/stories/201804120269.html |title=Egypt: China's Green Energy Company Starts Construction of Biggest Solar Plant in Egypt |date=11 April 2018 |publisher=Forum on China-Africa Cooperation via [[AllAfrica.com]] |archive-date=24 April 2018 |archive-url=https://web.archive.org/web/20180424072329/http://allafrica.com/stories/201804120269.html |url-status=live }}</ref><ref>{{cite web|url=https://www.evwind.es/2018/07/23/middle-easts-largest-wind-farm-in-jabal-al-zeit/64021|title=Middle East’s largest wind farm in Jabal al-Zeit, Egypt - REVE News of the wind sector in Spain and in the world|publisher=}}</ref><ref>{{Cite web|title=The Egyptian winds, a clean energy source {{!}} EU Neighbours|url=https://www.euneighbours.eu/en/south/eu-in-action/stories/egyptian-winds-clean-energy-source|access-date=2021-11-14|website=www.euneighbours.eu|language=en}}</ref> Egypt and Cyprus are considering implementing the proposed [[EuroAfrica Interconnector]] project.<ref name="EA">{{Cite web|url=https://www.euroafrica-interconnector.com/|title=EuroAfrica Interconnector|website=www.euroafrica-interconnector.com}}</ref><ref name="BLO">{{Cite news|date=8 February 2017|title=Electricity Cable Aims to Link Cyprus, Egypt, Greece|newspaper=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2017-02-08/electricity-cable-aims-to-link-cyprus-egypt-greece|via=www.bloomberg.com}}</ref><ref name="FM1">{{Cite web|date=8 February 2017|title=ENERGY: EuroAfrica 2,000MW cable boosts Egypt-Cyprus ties|url=https://www.financialmirror.com/2017/02/08/energy-euroafrica-2000mw-cable-boosts-egypt-cyprus-ties/}}</ref><ref name="DN">{{cite web|first=Mohamed|last=Farag|date=6 February 2017|title=EEHC, Euro Africa Company sign MoU to conduct a feasibility study to link Egypt, Cyprus, Greece|url=http://www.dailynewsegypt.com/2017/02/06/614506/|work=Daily News Egypt}}</ref><ref>{{Cite web|title=Euroafrica Interconnector | ENERGYPRESS|url=https://energypress.eu/tag/euroafrica-interconnector/|website=energypress.eu}}</ref> This consists of laying a 2 GW [[high-voltage direct current|HVDC]] [[submarine power cable|undersea power cable]] between them and between Cyprus and Greece, thus connecting Egypt to the greater European power grid.<ref name ="FM1"/> The interconnector will make Egypt an electricity hub between Europe and Africa.{{Citation needed|date=March 2024}} The president of Egypt and the prime minister of Cyprus met in [[Nicosia]] on 21 November 2017 and showed their full support for the EuroAfrica Interconnector pointing out its importance for energy security of the three countries.<ref name="TRI">{{Cite web|last=Hazou|first=Elias|title=Energy, peace focus of Tripartite Summit (updated) | Cyprus Mail|url=https://cyprus-mail.com/2017/11/21/energy-eu-relations-focus-tripartite-summit/|access-date=30 November 2020|archive-date=28 October 2020|archive-url=https://web.archive.org/web/20201028205308/http://cyprus-mail.com/2017/11/21/energy-eu-relations-focus-tripartite-summit/|url-status=dead}}</ref><ref name="DECL">{{Cite web|url=http://www.cyprus.gov.cy/moi/pio/pio2013.nsf/All/D5A706294139C3B3C22581DF004E38D7?Opendocument&L=E|title=Joint Declaration following the 5th Cyprus – Egypt – Greece Trilateral Summit, PIO Cyprus,Nicosia, 21 November 2017|access-date=5 February 2018|archive-date=4 February 2018|archive-url=https://web.archive.org/web/20180204123922/http://www.cyprus.gov.cy/moi/pio/pio2013.nsf/All/D5A706294139C3B3C22581DF004E38D7?Opendocument&L=E|url-status=dead}}</ref><ref name="PRE">{{Cite web|title=Egypt President El-Sisi fully endorses EuroAfrica Interconnector "electricity corridor" in historic meeting, Press release|url=http://www.euroafrica-interconnector.com/20171120_press.html|url-status=dead|archive-url=https://web.archive.org/web/20180204000429/http://www.euroafrica-interconnector.com/20171120_press.html|archive-date=4 February 2018|access-date=5 February 2018}}</ref><ref name="VID">{{Cite web|url=https://www.youtube.com/watch?v=VQejIbsce74| archive-url=https://ghostarchive.org/varchive/youtube/20211211/VQejIbsce74| archive-date=2021-12-11 | url-status=live|title=Leaders Al Sisi Anastasiades Tsipras Trilateral Summit 21 November 2017| date=23 November 2017|via=YouTube}}{{cbignore}}</ref> On 29 October 2007, Egypt's president, Hosni Mubarak gave the go-ahead for building several [[nuclear power plant]]s, but this failed to take off under his leadership. On November 19, 2015 Egypt and Russia signed an initial agreement, under which Russia will build and finance Egypt’s first nuclear power plant. In December 2017 preliminary contracts for the construction of four [[VVER-1200]] units were signed in the presence of Egyptian President [[Abdel Fattah el-Sisi]] and Russian President [[Vladimir Putin]].<ref name=wnn-20171211>{{cite news |url=http://www.world-nuclear-news.org/NN-Notice-to-proceed-contracts-signed-for-El-Dabaa-1112178.html |title='Notice to proceed' contracts signed for El Dabaa |publisher=World Nuclear News |date=11 December 2017 |accessdate=12 December 2017}}</ref> The permit for unit 1 was issued by the Egyptian Nuclear and Radiological Regulatory Authority (ENRRA) in June 2022.<ref name="wnn-2022-06-30">{{cite news |url=https://www.world-nuclear-news.org/Articles/Construction-permit-issued-for-first-Egyptian-unit |title=Construction permit issued for first Egyptian unit |publisher=World Nuclear News |date=30 June 2022 |accessdate=8 July 2022}}</ref> First safety-related concrete was poured in July 2022.<ref name="wnn-2022-07-20">{{Cite news |url=https://www.world-nuclear-news.org/Articles/Construction-of-Egypts-first-nuclear-power-plant-u |title=Construction of Egypt's first nuclear power plant under way |publisher=World Nuclear News |date=20 July 2022 |accessdate=20 July 2022}}</ref> In October 2022, ENRRA gave construction approval for unit 2,<ref name=wnn-20221101>{{cite news |url=https://www.world-nuclear-news.org/Articles/Egypt-s-next-nuclear-reactor-gets-approval-for-con |title=Egypt's next nuclear reactor gets approval for construction |publisher=World Nuclear News |date=1 November 2022 |access-date=3 November 2022}}</ref> whose construction started on 19 November.<ref name=wnn-20221121>{{cite news |url=https://www.world-nuclear-news.org/Articles/Construction-begins-for-El-Dabaa-unit-2 |title=Construction begins for El Dabaa unit 2 |publisher=World Nuclear News |date=21 November 2022 |access-date=19 December 2022}}</ref> ==== Hydrocarbons ==== [[File:Egypt nat gas exports.png|thumb|Egypt's net natural gas exports.<ref>{{Cite web|url=https://www.eia.gov/international/?fips=eg|title=International - U.S. Energy Information Administration (EIA)|website=www.eia.gov}}</ref>]] [[File:Egypt oil imports.png|thumb|Egypt's oil consumption is overtaking oil production.]] The Egyptian government has long prioritized expanding the [[petrochemical industry]] and increasing natural gas exports. By 2009, 38% of locally produced natural gas was allocated for export. However, declining crude oil production, peaking at {{convert|941000|oilbbl/d|m3/d|abbr=on}} in 1993 before falling to {{convert|630000|oilbbl/d|abbr=on}} by 2008, led Egypt to shift focus toward natural gas. By 2008, gas production had reached 48.3 billion cubic meters, though rising domestic consumption turned Egypt into a net oil importer by 2008–2009.<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/egypt/|title=The World Factbook|access-date=4 March 2015}}</ref> In 2014, Egypt prioritized domestic gas consumption over exports, significantly reducing international supply. The country also signed a 15-year agreement with Israel to import 7 billion cubic meters of gas annually from the Leviathan field.<ref>[https://www.wsj.com/articles/egypt-would-approve-bgs-israel-gas-deal-if-local-demand-is-met-1404751523] Wall Street Journal article in Egypt's gas</ref> A year later, BP announced a $12 billion investment in Egypt’s natural gas sector, primarily in the West Nile Delta project, which now produces nearly 1 billion cubic feet per day (bcf/d). BP also developed the Atoll field (300 million standard cubic feet per day) and the North Damietta concession, with production from the Qattameya discovery starting in 2020.<ref>{{Cite news|url=https://www.nytimes.com/2015/03/07/business/international/bp-signs-12-billion-deal-to-develop-natural-gas-in-egypt.html |archive-url=https://ghostarchive.org/archive/20220101/https://www.nytimes.com/2015/03/07/business/international/bp-signs-12-billion-deal-to-develop-natural-gas-in-egypt.html |archive-date=2022-01-01 |url-access=limited|title=BP Signs $12 Billion Deal to Develop Natural Gas in Egypt|first=Stanley|last=Reed|newspaper=The New York Times|date=6 March 2015}}{{cbignore}}</ref><ref>{{cite web | url=https://www.bp.com/en/global/corporate/what-we-do/bp-worldwide/bp-in-egypt.html | title=BP in Egypt | publisher=BP | access-date=28 February 2025 }}</ref> The [[Zohr gas field]], discovered by [[Eni]] in 2015, remains the Mediterranean’s largest natural gas find, with estimated reserves of 30 trillion cubic feet. Production began in December 2017, reaching 2.7 bcf/d by August 2019.<ref>{{cite web | url=https://www.eni.com/en-IT/actions/global-activities/egypt/zohr.html | title=Zohr Gas Field – Egypt | publisher=Eni | access-date=28 February 2025 }}</ref> However, recent technical challenges have reduced Zohr’s output, leading to domestic supply constraints and increased reliance on imports. Egypt has secured agreements with Cyprus to import gas from the Cronos and Aphrodite fields, processing it in Idku and Damietta for LNG exports to Europe. Efforts to revitalize Zohr include new drilling plans to increase production by 220 million cubic feet per day.<ref>{{cite news | url=https://english.ahram.org.eg/NewsContent/50/1202/541105/AlAhram-Weekly/Economy/Tightening-the-deficit-on-gas.aspx | title=Tightening the Deficit on Gas | publisher=Al-Ahram Weekly | date=22 February 2024 | access-date=28 February 2025 }}</ref> === Construction sector === Egypt’s construction industry, valued at USD 55.04 billion in 2025, is projected to reach USD 82.34 billion by 2030, with an annual growth rate of 8.4%. Contributing around 14% to GDP, the sector benefits from state-led infrastructure investment and growing foreign interest, particularly from [[Gulf Cooperation Council|Gulf]] sovereign funds. Real estate remains a key driver, with USD 20 billion invested in [[Cairo]] in 2022, largely in housing. The introduction of real estate trading on the [[Egyptian Exchange]] and the launch of a dedicated real estate fund have further diversified the market.<ref name=construction>{{Cite web|date=2025-02-28|title=Egypt Construction Market|url=https://www.mordorintelligence.com/industry-reports/egypt-construction-market|access-date=2025-02-28|website=Mordor Intelligence|language=en-US}}</ref> [[File:Iconic Tower construction Oct 24, 2021.webp|thumb|Construction of the central business district in Egypt's [[New Administrative Capital]] in 2021]] Major projects such as the [[Cairo Metro#Line 3|Cairo Metro Lines 3 and 4]], the two-line [[Cairo Monorail]], and the [[high-speed rail in Egypt|high-speed rail network]] are reshaping national infrastructure. These initiatives are complemented by large-scale energy projects like the [[El Dabaa Nuclear Power Plant]] and various renewable energy developments.<ref name=construction/> Flagship developments include the [[proposed new capital of Egypt]], launched in 2015, and [[New Alamein]], a north coast city spanning 48,000 feddans, both part of Egypt’s [[New Urban Communities Authority|fourth-generation cities]].<ref>{{Cite web|date=2021-02-28|title=Relocating to new capital marks 'new era' for Egypt's government, says Sisi|url=https://egyptindependent.com/relocating-to-new-capital-marks-new-era-for-egypts-government-says-sisi/|access-date=2021-03-07|website=Egypt Independent|language=en-US}}</ref><ref>{{Cite web|date=2018-03-01|title=Sisi inaugurates New Alamein city, other national projects|url=https://egyptindependent.com/sisi-inaugurates-new-alamein-city-other-national-projects/|access-date=2021-03-07|website=Egypt Independent|language=en-US}}</ref> Residential construction leads the market with a 37% share in 2024, supported by a young population and pro-housing policies. Industrial construction, meanwhile, is the fastest-growing segment, expected to grow 12% annually through 2029, driven by foreign investment and specialized industrial zones.<ref name=construction/> Leading firms include [[Hassan Allam Holding|Hassan Allam Construction]], Dorra Holding, [[Arab Contractors]], [[Orascom Construction]], and SIAC Industrial Construction & Engineering.<ref name=construction/> === Services sector === ==== Banking ==== {{See also|List of banks in Egypt}} The [[Central Bank of Egypt]] is the [[National Reserve Bank|national reserve bank]], regulating the [[financial market]] and the [[Egyptian pound]]. Egypt’s banking sector has undergone major reforms since the 1990s, resulting in a liberalized and modernized system aligned with international standards. By late 2024, total bank assets reached approximately 21 trillion Egyptian pounds (USD 420 billion), a significant rise from EGP 633 billion (USD 101 billion) in 2004.<ref>{{cite web | url=https://www.ceicdata.com/en/egypt/balance-sheet-aggregate-all-banks/all-banks-assets-aggregate | title=All Banks Assets Aggregate – Egypt | publisher=CEIC Data | access-date=28 February 2025 }}</ref> Egypt’s banking system dates back to 1856, evolving through privatization, mergers, and foreign bank exits, such as [[Société Générale]]'s 2012 sale of [[National Société Générale Bank]] to [[QNB Al Ahli]].<ref>{{Cite news|first1=Lionel|last1=Laurent|first2=Dinesh|last2=Nair|date=2012-12-12|title=SocGen sells Egypt arm to QNB for $2 billion|language=en|work=Reuters|url=https://www.reuters.com/article/us-socgen-egypt-idUSBRE8BB1JQ20121212|access-date=2020-11-26}}</ref> Despite private sector growth, state-owned commercial banks remain dominant.<ref>{{Cite book |last=Nasr |first=Sarah |title=Access to Finance and Economic Growth in Egypt |publisher=The World Bank}}</ref> Financial inclusion has expanded, with 74.8% of Egyptians aged 15 and above using financial accounts, reaching 52 million users by 2024.<ref name=fin-inclusion>{{cite news | url=https://www.egypt-business.com/web/details/2509-74-of-eligible-egyptians-actively-using-bank-accounts/435737 | title=74% of Eligible Egyptians Actively Using Bank Accounts | date=27 February 2025 | access-date=27 February 2025 }}</ref> Usage spans banks, [[Egypt Post]], mobile wallets like Vodafone Cash and MobiCash, and prepaid cards like [[Meeza]]. Women’s financial inclusion grew 295% since 2016 thanks to policies and initiatives aimed at empowering women financially, reaching 68.8%, while youth participation rose 65% from 2020 to 2024, hitting 53.1%.<ref name="fintech" /> The fintech sector has expanded 5.5-fold since 2020, with 177 startups ranking Egypt 10th among emerging markets. Growth, driven by digital payments, lending platforms, and B2B marketplaces, is bolstered by financial inclusion policies.<ref name=fintech>{{cite news | url=https://english.ahram.org.eg/News/541157.aspx | title=Egypt’s Fintech Sector Expands Fivefold in Five Years | date=27 February 2025 | access-date=27 February 2025 }}</ref> With over 60% of the population under 30, youth adoption is high, though cybersecurity risks, regulatory gaps, and digital literacy disparities remain challenges.<ref name="fintech" /> ==== Finance ==== {{Main|Egyptian Exchange}} The origins of Egypt's stock exchange date back to 1883 with the establishment of the first futures market in [[Alexandria]]. In 1902, the Brokers' Syndicate was formed, introducing the first set of regulations governing stock market activities.<ref name="history">{{cite web |title=EGX History |url=https://www.egx.com.eg/en/History.aspx |access-date=19 June 2024}}</ref> Today, the [[Egyptian Exchange]] (EGX) comprises the Cairo and Alexandria stock exchanges, operating under a unified trading, clearing, and settlement system. It serves as the primary platform for equities, bonds, and financial instruments in Egypt. The exchange has undergone multiple phases of reform, including privatization initiatives, regulatory adjustments, and structural enhancements to improve market liquidity and attract foreign investment.<ref name=finance>{{cite web | url=https://www.amcham.org.eg/publications/industry-insight/issue/45/privatization-proceeds | title=Privatization Proceeds | publisher=American Chamber of Commerce in Egypt | access-date=28 February 2025 }}</ref> Egypt’s stock market has experienced fluctuations due to global economic conditions, foreign capital flows, and domestic policy changes. Periods of IPO activity and privatization efforts have contributed to market expansion, while external shocks, such as global financial downturns and geopolitical events, have periodically impacted performance. Government-led reforms have included revisions to listing rules, the introduction of sectoral indices, and measures to increase market depth, such as the establishment of a [[Government bond|treasury bonds]] [[Stock market index|index]] and approval for [[Special-purpose acquisition company|special purpose acquisition companies]]. Plans for further market development include the launch of EGYCOMEX, the [[Egyptian Commodities Exchange]], and the introduction of [[derivatives trading]], both aimed at diversifying financial instruments and strengthening Egypt’s position as a regional financial hub.<ref name=finance/> ==== ICT and communications ==== {{Main|Telecommunications in Egypt}} [[File:Telecom Egypt Smart Village building 2.jpg|thumb|300px|The headquarter of [[Telecom Egypt]]]] The liberalization of Egypt’s telecommunications sector began in 1998, gradually expanding private sector involvement in mobile telephony and internet services. In 2004, the Information Technology Industry Development Agency (ITIDA) was established under Law 15 to drive Egypt’s digital transformation, implement e-signature legislation, and promote an export-oriented IT sector.<ref>{{Cite web |title=ITIDA to boost Egypt's digital transformation through new e-signature licenses |url=https://www.businesstodayegypt.com/Article/4/338/ITIDA-to-boost-Egypt%E2%80%99s-digital-transformation-through-new-e-signature |access-date=2024-06-09 |website=Business Today}}</ref> Deregulation followed in 2006 after Egypt joined the [[World Trade Organization]]'s Information Technology Agreement in 2003, opening the market to competition and foreign investment.<ref>{{Cite web |title=WTO {{!}} News - 2003 News items - China, Egypt join WTO's Information Technology Agreement |url=https://www.wto.org/english/news_e/news03_e/news_china_egypt_25apr03_e.htm |access-date=2022-06-29 |website=www.wto.org}}</ref> By 2007, Egypt had 10 million fixed lines, 31 million mobile subscribers, and 8.1 million internet users.<ref>{{Cite web |title=Egypt: number of internet users 2024 {{!}} Statista |url=https://www.statista.com/statistics/462957/internet-users-egypt/ |archive-url=https://web.archive.org/web/20241224190459/https://www.statista.com/statistics/462957/internet-users-egypt/ |archive-date=24 December 2024 |access-date=2025-02-08 |website=Statista |language=en |url-status=live }}</ref> The ICT sector has since become a major driver of economic growth, expanding by 15.2% in FY 2022/2023 and contributing 5.1% to Egypt’s GDP, up from 4.4% in 2019/2020. Investments in the sector reached $4.2 billion in 2022/2023, a 20% increase from the previous year.<ref>{{cite web | url=https://www.trade.gov/country-commercial-guides/egypt-digital-economy | title=Egypt - Digital Economy | publisher=U.S. Department of Commerce | access-date=28 February 2025 }}</ref> The telecommunications market operates under a unified license system, with key players including [[Telecom Egypt]], [[Vodafone Egypt|Vodafone]], [[Orange Egypt|Orange]], [[Etisalat Egypt]], and [[Ericsson]].<ref>{{cite web | url=https://www.budde.com.au/Research/Egypt-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses | title=Egypt - Telecoms, Mobile, and Broadband Statistics and Analyses | publisher=BuddeComm | access-date=28 February 2025 }}</ref> Looking ahead, Egypt’s ICT market is projected to grow from $23.6 billion in 2025 to $53.1 billion by 2030, at a compound annual growth rate of 17.61%.<ref>{{cite web | url=https://www.mordorintelligence.com/industry-reports/egypt-ict-market | title=Egypt ICT Market Report | publisher=Mordor Intelligence | access-date=28 February 2025 }}</ref> The government’s Digital Egypt initiative aims to transform the country into a digitally-driven society by expanding infrastructure, fostering innovation, and modernizing public services. As part of this strategy, and the broader [[Egypt Vision 2030]], the government has integrated 33,000 institutions into a secured digital network and enhanced online services, improving transparency and efficiency.<ref>{{cite web | url=https://mcit.gov.eg/en/digital_Egypt | title=Digital Egypt Initiative | publisher=Ministry of Communications and Information Technology (MCIT) | access-date=28 February 2025 }}</ref> Between 2019 and 2022, mobile internet subscriptions surged by 77.9%, from 39 million to 69.4 million, with total mobile subscriptions reaching 106.2 million by December 2023.<ref>{{cite news | url=https://english.ahram.org.eg/News/519378.aspx | title=Mobile and internet subscriptions in Egypt increased by 6 million in 2023| publisher=Ahram Online| date=13 March 2024 | access-date=28 February 2025 }}</ref> Internet penetration reached 72.2% in early 2024, with 82 million users.<ref>{{cite web | url=https://www.statista.com/statistics/462957/internet-users-egypt/ | title=Number of Internet Users in Egypt | publisher=Statista | access-date=28 February 2025 }}</ref> The country also leads Africa in internet speed rankings and is set to generate $3.5 billion in smartphone revenue by 2025, growing at an annual rate of 6.11% until 2029.<ref>{{cite web | url=https://www.statista.com/outlook/cmo/consumer-electronics/telephony/smartphones/egypt | title=Smartphone Market in Egypt | publisher=Statista | access-date=28 February 2025 }}</ref><ref name=digitalegy>{{cite web | url=https://we.hse.ru/en/irs/cas/passeg | title=Egypt's Digital Transformation and ICT Growth | publisher=Higher School of Economics | access-date=28 February 2025 }}</ref> ==== Transport ==== {{Main|Transport in Egypt}} [[File:Metro-1-l.jpg|right|thumb|The [[Cairo Metro]].]] Transport in Egypt centers on [[Cairo]] and follows settlement along the Nile. The Nile River ({{convert|1600|km|mi|abbr=on}}) and major canals of equal length serve local transport.<ref>{{cite web |title=Nile River |url=https://education.nationalgeographic.org/resource/nile-river/ |website=National Geographic Education |publisher=National Geographic Society |access-date=14 April 2025}}</ref> Since 2014, the [[National Roads Project]] has driven major upgrades to Egypt’s road network, adding 6,300 km of new roads and upgrading 8,400 km at a combined cost of 265 billion Egyptian pounds. This expanded main roads by 29.8% to 30,500 km and improved Egypt’s ranking in the Road Quality Index from 118th globally in 2015 to 18th in 2024.<ref>{{cite web |url=https://lca.logcluster.org/23-egypt-road-network |title=Egypt Road Network |publisher=Logistics Capacity Assessment |access-date=3 March 2025}}</ref> Egypt’s {{convert|4800|km|mi}} railway network is operated by [[Egyptian National Railways]]. In 2021, the National Authority for Tunnels signed a $4.5 billion contract with [[Siemens Mobility]], [[Orascom Construction]], and [[Arab Contractors]] to build a {{cvt|660|km}} electrified high-speed rail line linking [[Ain Sokhna]], [[Mersa Matruh]], and [[Alexandria]]. Dubbed the "Green Line" or "Suez Canal on rails,"<ref>{{Cite web |title=High-speed train El Ain El Sokhna - Marsa Matrouh |url=http://www.nat.gov.eg/LocationActivity.aspx?id=2082 |access-date=2022-08-18 |website=National Authority for Tunnels}}</ref><ref name="2022-05-29-dw" /> it will carry both freight and passengers using [[Siemens Velaro|Velaro]] high-speed trains, [[Siemens Desiro|Desiro]] regional sets, and [[Vectron (locomotive)|Vectron]] freight locomotives. Two more lines were announced in 2022, connecting [[Greater Cairo]] to [[Aswan]] and [[Luxor]] to [[Hurghada]] and [[Safaga]].<ref name="2022-05-30-rt">{{cite news |title=Siemens Mobility secures high-speed rail contract in Egypt |url=https://www.railway-technology.com/news/siemens-mobility-rail-contract/ |access-date=30 May 2022 |work=Railway Technology |date=30 May 2022}}</ref><ref name="2022-05-29-dw">{{cite news |title=Egypt signs €8 billion deal with Siemens for high-speed rail system {{!}} DW {{!}} 29.05.2022 |url=https://www.dw.com/en/egypt-signs-8-billion-deal-with-siemens-for-high-speed-rail-system/a-61967258 |access-date=30 May 2022 |work=DW.COM |date=29 May 2022}}</ref><ref name="2022-05-29-zawya">{{cite news |title=Siemens seals $8.5bln deal to build mega hi-speed rail in Egypt |url=https://www.zawya.com/en/projects/construction/siemens-seals-85bln-deal-to-build-mega-hi-speed-rail-in-egypt-ug14b4f0 |access-date=30 May 2022 |work=Zawya |date=29 May 2022}}</ref> [[Egypt Air]] and private carriers such as [[Nile Air]] and [[Air Cairo]] operate frequent domestic flights from [[Cairo International Airport]] to major tourist destinations. The [[Suez Canal]], managed by the [[Suez Canal Authority]], is a vital global shipping route linking the Mediterranean and Red Seas. Egypt’s main ports include [[Alexandria]], [[Port Said]], and [[Damietta]] on the Mediterranean, and [[Suez]], [[Ain Sokhna]], and [[Safaga]] on the Red Sea.<ref>{{Cite web|date=2019-05-27|title=The Return of Geopolitics|url=https://www.thecairoreview.com/essays/the-return-of-geopolitics/|access-date=2021-02-08|website=The Cairo Review of Global Affairs|language=en-US}}</ref><ref>{{Cite web|last=Plumer|first=Brad|date=2016-04-25|title=This is an incredible visualization of the world's shipping routes|url=https://www.vox.com/2016/4/25/11503152/shipping-routes-map|access-date=2021-02-08|website=Vox|language=en}}</ref> ==== Tourism ==== {{Main|Tourism in Egypt}} [[File:رمسيس الثاني 04.jpg|thumb|160px|[[Grand Egyptian Museum]]]] Tourism in Egypt grew significantly after 1975 when the government eased visa restrictions and focused on tourism infrastructure. By 1981, tourist arrivals had risen to 1.8 million, reaching 14.7 million in 2010. However, the COVID-19 pandemic caused a sharp decline, with revenues dropping to $4 billion in 2020 and arrivals falling to 3.5 million. In February 2022, the [[International Monetary Fund]] (IMF) noted that Egypt's tourism sector was the biggest loser from the pandemic.<ref name=Ragab2014>{{cite conference|url=http://cf.cdn.unwto.org/sites/all/files/pdf/14th_meeting_egypt.pdf|title=Recent development of TSA in Egypt|date=January 14–15, 2014|conference=Fourteenth Meeting of the Committee of Statistics and Tourism Satellite Account (TSA)|author=Adla Ragab|access-date=9 October 2014|archive-date=6 January 2017|archive-url=https://web.archive.org/web/20170106174139/http://cf.cdn.unwto.org/sites/all/files/pdf/14th_meeting_egypt.pdf|url-status=dead}}</ref><ref name="Egypt - international tourism">{{cite web|title=Egypt – international tourism|url=http://www.indexmundi.com/facts/egypt/international-tourism|access-date=11 October 2014}}</ref><ref>{{cite news|url=https://www.reuters.com/article/egypt-tourism-int-idUSKBN2991E6|title=Egypt eyes slow return for tourism after revenues dive in 2020|date=4 January 2021 |access-date=4 January 2021|work=Reuters}}</ref><ref>{{cite web|url= https://egyptindependent.com/tourism-in-egypt-is-the-biggest-loser-of-covid-19-imf-official/|title=Tourism in Egypt is the biggest loser of COVID-19: IMF official|date=14 February 2021|access-date=14 February 2021|publisher=Egypt Independent}}</ref> Egypt's government has initiated several projects in the tourism sector, including the [[Grand Egyptian Museum]]. Once completed, it will be the largest museum in the world. This museum aims to showcase Egypt's rich archaeological heritage, strengthening the country's position as a global tourist destination.<ref>{{Cite web|last=Show|first=BBC's The Travel|title=In Egypt, the world's largest archaeology museum|url=https://www.bbc.com/travel/story/20181101-in-egypt-the-worlds-largest-archaeology-museum|access-date=2021-03-19|website=www.bbc.com|language=en}}</ref><ref>{{Cite web|last=Sattin|first=Anthony|title=Everything We Know About Cairo's New Grand Egyptian Museum|url=https://www.cntraveler.com/story/grand-egyptian-museum-cairo-everything-we-know|access-date=2021-03-19|website=Condé Nast Traveler|date=30 July 2019|language=en-us}}</ref> In 2024, Egypt achieved a record 15.7 million tourists, surpassing the previous year’s 14.9 million. This achievement, attributed to government efforts to enhance security and tourism support, marks a strong recovery from the pandemic's impact. After the drastic decline in 2020, tourism has rebounded, with revenues reaching $14.1 billion, up from previous years.<ref name=tourism>{{cite web |url=https://sis.gov.eg/Story/204112/A-record-15.7-million-tourists-visited-Egypt-in-2024?lang=en-us |title=A record 15.7 million tourists visited Egypt in 2024 |publisher=State Information Service |date=2024 |access-date=2025-02-27}}</ref> The country's tourism strategy includes plans to attract 30 million tourists by 2028, with continued improvements to infrastructure and the tourist experience. Egypt's top markets in 2024 included Germany, Russia, and Saudi Arabia.<ref name=tourism/> === Emerging sectors === ==== Defence and security products ==== {{Main|Military industry of Egypt}} [[File:RAAD-200 edex.jpg|thumb|[[RAAD 200]], a [[multiple rocket launcher]] produced in Egypt on display at [[Egypt Defence Expo|EDEX 2023]]]] Egypt’s [[defence industry]] is among the oldest and most extensive in the [[Arab world]], comprising a network of state-owned enterprises and a growing private sector. It produces [[small arms]], [[munitions]], [[UAV|drones]], [[armored vehicles]], and [[naval vessels]], often through local manufacturing or co-production agreements.<ref name=exportdef>{{cite news | url=https://www.military.africa/2022/11/egypt-needs-export-customers-for-its-growing-defence-industry/ | title=Egypt needs export customers for its growing defence industry | date=November 4, 2022 | access-date=March 2, 2025}}</ref><ref>{{cite news | url=https://breakingdefense.com/2024/07/egypts-benha-electronics-teams-with-frances-thales-to-coproduce-military-comms-devices/ | title=Egypt's Benha Electronics teams with France's Thales to coproduce military comms devices | date=July 15, 2024 | access-date=March 2, 2025 }}</ref> To bolster self-sufficiency and exports, Egypt launched a $479 million weapons manufacturing strategy in 2020 to modernize 84 production lines. It has leveraged partnerships and events like the [[Egypt Defence Expo]] to showcase capabilities and position itself as a regional hub.<ref>{{cite news | url=https://www.dailynewsegypt.com/2021/12/09/opinion-edex-2021-and-the-new-start-of-egyptian-military-industries/#:~:text=Cairo%20has%20held%20the%20second,Africa%20and%20the%20Middle%20East | title=EDEX 2021 and the new start of Egyptian military industries | date=9 December 2021 | access-date=2 March 2025 }}</ref> The [[Ministry of Military Production (Egypt)|Ministry of Military Production]] oversees firms such as [[Abu Zaabal Specialized Industries]], [[Abu Zaabal Engineering Industries]], and the [[Armoured production and repair factory (Egypt)|Armoured Production and Repair Factory]], which produces systems like the [[M1A1 Abrams]], [[K9 Thunder|K9A1EGY]], [[RAAD 200]], and [[SENA 200|Sinai 200]]. It also oversees Thales & Benha Electronics S.A.E., a joint venture with [[Thales Group]] for co-producing communications and electronic systems.<ref>{{cite news | url=https://breakingdefense.com/2024/07/egypts-benha-electronics-teams-with-frances-thales-to-coproduce-military-comms-devices/#:~:text=The%20statement%20added%20that%20this,%E2%80%9D | title=Egypt’s Benha Electronics teams with France’s Thales to coproduce military comms devices | website=Breaking Defense | date=July 2024 | access-date=1 March 2025 }}</ref> The [[Arab Organization for Industrialization]] (AOI) oversees companies like Kader, Sakr, and Arab American Vehicles, as well as joint ventures such as Arab British Dynamics. It operates aerospace and engine factories in [[Helwan]], producing the [[Alpha Jet]], [[K-8E]], and pursuing licensed production of the [[KAI T-50 Golden Eagle]].<ref>{{cite news | url=https://www.military.africa/2024/12/egypt-plans-local-production-of-light-combat-and-trainer-aircraft/ | title=Egypt plans local production of light combat and trainer aircraft | date=December 2024 | access-date=1 March 2025 }}</ref> The [[Alexandria Shipyard]] builds corvettes, frigates, and patrol vessels, and has partnered with [[Naval Group]] and [[ThyssenKrupp Marine Systems]] to produce the [[Gowind-class design|Gowind 2500]] and [[MEKO 200|Meko A200]] classes locally.<ref>{{cite web | url=https://alexyard.com.eg/asy-overview/ | title=We are Alexandria Shipyard | website=Alexandria Shipyard | access-date=2 March 2025 }}</ref><ref>{{cite web | url=https://alexyard.com.eg/gowind/ | title=Gowind | website=Alexandria Shipyard | access-date=2 March 2025 }}</ref><ref>{{cite web | url=https://alexyard.com.eg/meko-a200/ | title=MEKO A200 | website=Alexandria Shipyard | access-date=2 March 2025 }}</ref> Private sector players include [[Robotics Engineering Systems]], specializing in drones, smart munitions, and guided missiles,<ref>{{cite news | url=https://english.defensearabia.com/robotics-engineering-system-makes-quantum-leap-in-defense-manufacturing/ | title=Robotics Engineering System Makes Quantum Leap in Defense Manufacturing | date=September 7, 2024 | access-date=March 2, 2025 }}</ref> and [[Amstone]], which develops advanced unmanned aerial and naval systems.<ref>{{cite news | url=https://english.defensearabia.com/amstone-an-egyptian-pioneer-in-the-defense-industry/ | title=Amstone: An Egyptian Pioneer in the Defense Industry | date=September 7, 2024 | access-date=March 2, 2025 }}</ref> ==== Semiconductors and electronic chips ==== In 2024, Egypt launched a national policy to localize [[semiconductor]] and [[electronic chip]] manufacturing, identifying the sector as a strategic priority for economic growth and technological self-reliance.<ref name=chipcouncil>{{cite news |url=https://www.businesstodayegypt.com/Article/1/4966/Egypt-to-establish-national-council-for-electronic-chips-manufacturing |title=Egypt to establish national council for electronic chips manufacturing |work=Business Today Egypt |date=16 June 2024 |access-date=22 April 2025 }}</ref> The initiative provides incentives such as tax breaks, land access, and technical support to promote investment in semiconductors, embedded systems, and circuit design.<ref name=ITIDA_EME/> It forms part of the broader ''Egypt Makes Electronics'' program, a presidential strategy launched in 2015 to advance high-value electronics design and manufacturing and generate employment in labor-intensive production.<ref name=ITIDA_EME>{{cite web |url=https://itida.gov.eg/English/Programs/EgyptMakesElectronics/Pages/default.aspx |title=Egypt Makes Electronics – EME |publisher=Information Technology Industry Development Agency (ITIDA) |access-date=2025-04-22 }}</ref> To coordinate implementation, the government established the National Council for the Localization of Semiconductor Technology, chaired by the Prime Minister and comprising representatives from key ministries.<ref name=chipcouncil/> The council is responsible for setting strategy, tracking investments, addressing regulatory barriers, and coordinating with both domestic and international stakeholders.<ref name=chipcouncil/> A major component of the policy is the integration of local mineral resources into supply chains for microelectronics.<ref name=chipcouncil/> It also includes training initiatives, incentives for investors, and a national roadmap to guide integration into global value chains, supported by an international consultant.<ref name=madboulyreview>{{cite news |url=https://www.dailynewsegypt.com/2024/06/13/prime-minister-reviews-advances-in-localising-e-chip-semiconductor-industry/ |title=Prime Minister reviews advances in localising e-chip, semiconductor industry |work=Daily News Egypt |date=13 June 2024 |access-date=22 April 2025 }}</ref> In parallel, Egypt partnered with China's Tsinghua Unigroup in 2024 to launch a $300 million investment fund focused on semiconductors and artificial intelligence, with over 80% of the capital contributed by the Chinese side in collaboration with Egyptian partners.<ref>{{cite news |url=https://news.outsourceaccelerator.com/chinese-firms-boost-egypt-tech-outsourcing/ |title=Chinese firms boost Egypt’s tech, outsourcing sectors |last=Suroy |first=HJ |date=2024-10-03 |website=Outsource Accelerator |access-date=2025-04-22}}</ref> As of 2025, Egypt hosts 23 semiconductor startups, with several notable companies emerging in the sector.<ref name=tracxnstartups>{{cite web |url=https://tracxn.com/d/explore/semiconductors-startups-in-egypt/__OI8-UWjgkYBLRi3_TN0S-T_bDcac3yskhBG0q8GmVxw/companies#t-1-si-ware-systems |title=Semiconductors startups in Egypt |website=Tracxn |access-date=22 April 2025 }}</ref> These include Si-Ware Systems, which specializes in [[Application-specific integrated circuit|ASICs]] and [[MEMS]]; Avelabs, focused on embedded software for the automotive industry; SilMinds, a developer of hardware acceleration solutions for high-performance computing; Wasiela, which designs communication IP cores and digital media systems; and NeoSpectra, known for MEMS-based spectral sensors.<ref name=tracxnstartups/> InfiniLink, an Egyptian semiconductor startup founded in 2023, secured $10 million in seed funding in 2025, one of the largest deep-tech seed rounds in the [[Middle East and North Africa|MENA]] region.<ref name=infiniLink>{{cite news |url=https://www.techinafrica.com/egyptian-semiconductor-startup-infinilink-raises-10-million-in-seed-funding/ |title=Egyptian semiconductor startup InfiniLink raises $10 million in seed funding |work=Tech In Africa |date=8 April 2024 |access-date=22 April 2025 }}</ref> The company specializes in next-generation, energy-efficient optical transceiver chiplets designed for telecom, AI data centers, and IoT infrastructure.<ref name=infiniLink/><ref name=aiinsider>{{cite news |url=https://theaiinsider.tech/2025/04/04/infinilink-raises-10m-to-advance-ai-optimized-optical-connectivity-for-data-centers/ |title=InfiniLink raises $10M to advance AI-optimized optical connectivity for data centers |work=The AI Insider |date=4 April 2025 |access-date=22 April 2025 }}</ref> == Largest companies == {{Main|List of companies of Egypt}} In 2024, one Egyptian company was listed in the [[Forbes Global 2000]] list, an annual ranking of the top 2000 public companies in the world by Forbes magazine. {| class="wikitable sortable" |- style="background:#efefef;" !World rank !! Company !! class="unsortable"|Industry !! Revenue <br /> (billion $) !! Profits <br /> (billion $) !! Assets <br /> (billion $) !! Market value <br /> (billion $) |- style="text-align:right;" | 1663|| style="text-align:left;"| [[Commercial International Bank]] || style="text-align:left;"| [[Banking]] || 4.67 || 0.967 || 20.61 || 4.83 |- <!-- Blank row |- style="text-align:right;" | || style="text-align:left;"| || style="text-align:left;"| || || || || --> |} [[Forbes|Forbes Middle East]] also published a separate 2024 ranking of the top 50 listed companies in Egypt, highlighting other major publicly traded firms that did not feature on the global list but remain key players in Egypt’s economy. Following [[Commercial International Bank]] in the local ranking were QNB Al Ahli and [[Elsewedy Electric]], each with a market capitalization of $1.4 billion. They were followed by [[Telecom Egypt]] (4th), [[Orascom Construction]] (5th), and [[Talaat Mostafa Group]] (6th). Rounding out the top ten were Egypt Kuwait Holding, [[Faisal Islamic Bank of Egypt]], [[Abu Qir Fertilizers and Chemicals Industries Company|Abu Qir Fertilizers]], and Misr Fertilizers Production Company.<ref name=forbesME>{{cite web |title=Forbes ME reveals Egypt’s top 50 listed companies of 2024 |url=https://www.businesstodayegypt.com/Article/1/4722/Forbes-ME-reveals-Egypt%E2%80%99s-top-50-listed-companies-of-2024 |website=Business Today Egypt |date=23 June 2024 |access-date=17 April 2025}}</ref> The banking and financial services sector dominated with 16 entries, contributing $8.4 billion in sales and holding $58.5 billion in assets. The real estate and construction sector followed with nine firms, and the industrial sector accounted for seven.<ref name=forbesME/> == Investment climate == Historically, private equity has played a limited role in business financing in Egypt. However, the government has undertaken several initiatives to improve the investment climate and attract foreign direct investment (FDI). The Investment Law of 2017 was introduced to streamline procedures and investor incentives, and was followed by a new company law and bankruptcy law in 2018 and a customs law in 2020, all aimed at creating a more efficient business environment.<ref name=invest-climate1>{{cite web | url=https://www.trade.gov/country-commercial-guides/egypt-investment-climate-statement | title=Egypt Investment Climate Statement | publisher=U.S. Department of Commerce | access-date=28 February 2025 }}</ref> Alongside these legal amendments, efforts to simplify company registration and encourage foreign participation have contributed to making Egypt one of the leading FDI destinations in Africa between 2016 and 2020.<ref>{{cite web |title=World Investment Report 2021 |url=https://unctad.org/webflyer/world-investment-report-2021 |website=UNCTAD |access-date=28 February 2025}}</ref><ref name=invest-climate1/> To further enhance its economic attractiveness, Egypt has implemented fiscal reforms such as reducing corporate tax rates and cutting trade tariffs, aimed at increasing foreign investment and economic growth.<ref name=invest-climate2>{{cite web | url=https://www.state.gov/reports/2023-investment-climate-statements/egypt/ | title=2023 Investment Climate Statements: Egypt | publisher=U.S. Department of State | access-date=28 February 2025 }}</ref> At the same time, large-scale infrastructure projects, including transportation modernization, [[NUCA|new urban communities]], and the [[Suez Canal]]'s expansion, have been pursued to reduce logistical costs, enhance trade efficiency, and provide improved facilities for investors.<ref>{{cite news | url=https://www.dailynewsegypt.com/2024/12/21/government-focuses-on-enhancing-investment-climate-to-boost-competitiveness-el-khatib/ | title=Government Focuses on Enhancing Investment Climate to Boost Competitiveness: El-Khatib | publisher=Daily News Egypt | date=21 December 2024 | access-date=28 February 2025 }}</ref> As part of the reforms, Egypt introduced "golden licenses", a single-approval mechanism that allows investors to acquire land and begin operations without requiring multiple approvals from various government bodies. The General Authority for Investment and Free Zones (GAFI) oversees the program, which aims to reduce bureaucracy and attract FDI. As of March 2024, 26 golden licenses had been granted.<ref name=invest-climate2/> Additionally, in July 2023, President El-Sisi ratified Law No. 159 of 2023, which eliminated exemptions for state-owned enterprises, ensuring equal regulatory treatment for all investors.<ref name=invest-climate2/> To further encourage foreign capital inflows, the government has also introduced a citizenship-by-investment program, offering residency and citizenship in exchange for financial contributions.<ref>{{cite web |url=https://english.alarabiya.net/business/economy/2023/03/08/Egypt-offers-new-ways-foreign-investors-can-buy-citizenship-to-attract-vital-dollars |title=Egypt offers new ways foreign investors can buy citizenship to attract vital dollars |date=8 March 2023 |access-date=28 February 2025}}</ref> Despite these efforts, challenges persist. Issues like corruption and the need for improved enforcement of regulatory frameworks continue to impact investor confidence. In 2024, Egypt scored 30 out of 100 on Transparency International's Corruption Perceptions Index, ranking 130th out of 180 countries.<ref>{{cite web | url=https://www.transparency.org/en/countries/egypt | title=Egypt - Corruption Perceptions Index | publisher=Transparency International | access-date=28 February 2025 }}</ref> == Regional data == {{See also|List of governorates of Egypt by GDP}} Data shown are for the year 2021 in nominal numbers. {| class="sortable wikitable" ! [[Subdivisions of Egypt|Governorate]] ! GDP (billion [[Egyptian pound|EGP]])<ref>{{citation|title=GDP BY GOVERNORATE|url=https://mped.gov.eg/Governorate?lang=en|website=mped.gov.eg|access-date=26 January 2024|archive-date=26 January 2024|archive-url=https://web.archive.org/web/20240126000015/https://mped.gov.eg/Governorate?lang=en|url-status=dead}}</ref> ! GDP (billion [[US$]]) |- | [[Cairo Governorate|Cairo]] || 1,876.650 || 119.543 |- | [[Giza Governorate|Giza]] || 770.071 || 49.054 |- | [[Alexandria Governorate|Alexandria]] || 565.876 || 36.046 |- | [[Qalyubiyya Governorate|Qalyubiyya]] || 339.316 || 21.614 |- | [[Sharqia Governorate|Sharqia]] || 302.065 || 19.242 |- | [[Dakahlia Governorate|Dakahlia]] || 294.016 || 18.729 |- | [[Beheira Governorate|Beheira]] || 288.857 || 18.400 |- | [[Port Said Governorate|Port Said]] || 190.154 || 12.113 |- | [[Gharbia Governorate|Gharbia]] || 173.763 || 11.069 |- | [[Monufia Governorate|Monufia]] || 157.267 || 10.018 |- | [[Kafr El Sheikh Governorate|Kafr El Sheikh]] || 151.053 || 9.622 |- | [[Faiyum Governorate|Faiyum]] || 133.504 || 8.504 |- | [[Minya Governorate|Minya]] || 130.976 || 8.343 |- | [[Asyut Governorate|Asyut]] || 126.143 || 8.035 |- | [[Suez Governorate|Suez]] || 119.129 || 7.589 |- | [[Matrouh Governorate|Matrouh]] || 115.552 || 7.361 |- | [[Damietta Governorate|Damietta]] || 110.340 || 7.029 |- | [[Sohag Governorate|Sohag]] || 107.757 || 6.864 |- | [[Ismailia Governorate|Ismailia]] || 91.127 || 5.805 |- | [[Beni Suef Governorate|Beni Suef]] || 87.194 || 5.554 |- | [[Qena Governorate|Qena]] || 80.395 || 5.121 |- | [[Aswan Governorate|Aswan]] || 76.265 || 4.858 |- | [[Red Sea Governorate|Red Sea]] || 75.872 || 4.833 |- | [[South Sinai Governorate|South Sinai]] || 58.386 || 3.719 |- | [[North Sinai Governorate|North Sinai]] || 48.932 || 3.117 |- | [[Luxor Governorate|Luxor]] || 46.634 || 2.971 |- | [[New Valley Governorate|New Valley]] || 16.963 || 1.081 |- |- style="background:#feb;" | '''{{flag|Egypt}}''' || '''6,627.028'''|| '''422.142''' |- |} ==Challenges== === Poverty === [[File:Street Vendors of Cairo.webm|thumb|Street vendors in Cairo.]] Egypt has struggled to implement effective policies to address poverty. Past efforts to alleviate economic burdens often benefited wealthier segments of society. For example, food, electricity, and petroleum subsidies have historically disproportionately aided the non-poor.<ref name=autogenerated39>{{cite web|last=Sayed|first=Attia|title=Poverty Eradication in Egypt|url=http://weekly.ahram.org.eg/2008/921/op13.htm|access-date=10 February 2012}}</ref> Egypt’s fertility rate has dropped from 6.6 children per woman in the 1960s to 3.2 children per woman in 2021, though it remains high relative to global standards. The population increased from 44 million in 1981 to over 106 million today. Overpopulation remains one of the biggest challenges to confronting poverty.<ref>{{Cite web|title=Egypt Fertility Rate 1950-2021|url=https://www.macrotrends.net/countries/EGY/egypt/fertility-rate|access-date=2021-03-07|website=www.macrotrends.net}}</ref><ref>{{Cite web|title=Egypt Population 1950-2022|url=https://www.macrotrends.net/countries/EGY/egypt/population|access-date=2022-01-07|website=www.macrotrends.net}}</ref> [[File:Egypt Poverty.jpg|thumb|Cairo slums.]] The country’s reliance on international loans, such as from the IMF, has sometimes resulted in increased hardship for the population. In August 2022, Egypt sought another loan amid rising prices, triggering criticism of economic policies that primarily benefited elites.<ref>{{cite web|url=https://www.hrw.org/news/2022/08/19/egypt-seeks-exceptional-treatment-imf|title=Egypt Seeks 'Exceptional' Treatment by the IMF|access-date=19 August 2022|website=Human Rights Watch|date=19 August 2022}}</ref> The poverty rate in Egypt increased from 19 percent in 2005 to 21 percent in 2009, as reported by then Minister of Economic Development, Othman Mohamed Othman.<ref>{{cite web|last=Saleh|first=Amirah|title=Govt: Poverty rate up 2%|url=http://www.egyptindependent.com/news/govt-poverty-rate-2|date=10 October 2009|access-date=1 May 2013}}</ref> The national poverty rate stood at 24.3% in 2010, rising to approximately 30% by 2015. Additionally, a 2019 World Bank report indicated that 60% of Egypt’s population was either poor or vulnerable.<ref>{{cite web|url=https://www.worldbank.org/en/news/press-release/2019/04/30/world-bank-group-to-extend-current-strategy-in-egypt-to-maintain-momentum-on-reforms|title=World Bank Group to Extend Current Strategy in Egypt to Maintain Momentum on Reforms|access-date=30 April 2019|publisher=World Bank}}</ref> As of 2020, Egypt's population stood at 102 million, with 33% under the age of 14. Approximately 30% of the population lived below the poverty line.<ref>{{Cite web|title=StackPath|url=https://dailynewsegypt.com/2020/09/08/egypts-illiteracy-rate-decreased-to-24-6-in-july-2019-capmas/|access-date=2021-03-07|website=dailynewsegypt.com|date=8 September 2020}}</ref><ref>{{Cite web|title=Overview|url=https://www.worldbank.org/en/country/egypt/overview|access-date=2021-03-07|website=World Bank|language=en}}</ref> By 2021, this figure had declined slightly to 29.7% of the population.<ref>{{Cite web|title=Egypt's poverty rate declines to 29.7%: CAPMAS - Economy - Business|url=http://english.ahram.org.eg/NewsContent/3/12/396107/Business/Economy/Egypt%E2%80%99s-poverty-rate-declines-to--CAPMAS.aspx|access-date=2021-03-07|website=Ahram Online|language=en|archive-date=13 March 2021|archive-url=https://web.archive.org/web/20210313123200/https://english.ahram.org.eg/NewsContent/3/12/396107/Business/Economy/Egypt%E2%80%99s-poverty-rate-declines-to--CAPMAS.aspx|url-status=dead}}</ref> === Role of the military === {{Main|Economy of the Egyptian Armed Forces}} The [[Egyptian Armed Forces|Egyptian armed forces]] have wielded substantial influence over Egypt's economy. Military-run companies play a pivotal role across various industries, contributing significantly to public spending on housing and infrastructure, including activities such as cement and food production, as well as infrastructure development like roads and bridges. According to a study by the [[The Malcolm H. Kerr Carnegie Middle East Center|Carnegie Middle East Centre]], the Egyptian army has control over about 25% of public spending allocated to housing and infrastructure.<ref name=":3">{{Cite news |date=2023-04-13 |title=Egypt's army seems to want to make pasta as well as war |url=https://www.economist.com/middle-east-and-africa/2023/04/13/egypts-army-seems-to-want-to-make-pasta-as-well-as-war |access-date=2024-01-04 |newspaper=The Economist |issn=0013-0613}}</ref> Despite Egypt's commitment to reducing the military's economic impact per its agreement with the [[International Monetary Fund]] (IMF), recent developments indicate an opposing trend. The [[National Service Products Organization]] (NSPO), a firm under military ownership, is currently constructing new factories for the production of fertilizers, irrigation machines, and veterinary vaccines. The government discussed selling stakes in military-run companies Safi and Wataniya for two years. Despite claims of receiving offers, there are visible asset transfers, like the rebranding of Wataniya franchises into ChillOut stations.<ref name=":3" /> The army's expanding economic influence, from petrol stations to media, has stifled competition, hindered private investment and contributing to slower growth, higher prices, and limited opportunities for ordinary Egyptians.<ref>{{Cite news |date=2023-01-26 |title=To save Egypt's economy, get the army out of it |url=https://www.economist.com/leaders/2023/01/26/to-save-egypts-economy-get-the-army-out-of-it |access-date=2024-01-04 |newspaper=The Economist |issn=0013-0613}}</ref> In 2022, responding to international calls for economic reform, Egypt introduced the State Ownership Policy Document in collaboration with the [[International Monetary Fund|IMF]]. The document outlines Egypt’s strategy to reduce state and military involvement in the economy, withdrawing entirely from certain industries within three years while maintaining or expanding a presence in strategic sectors. It also seeks to increase private sector participation by clearly defining the state's economic role, enhancing governance of state-owned enterprises according to [[OECD]] standards, and promoting competitive neutrality.<ref name=sopd>{{cite web | url=https://www.cabinet.gov.eg/conference/pdf/property-policy-document-eng.pdf | title=State Ownership Policy Document | publisher=Government of Egypt | date=June 2022 | access-date=1 March 2025 }}</ref> By the final quarter of 2024, these reforms had led private investment to exceed public investment for the second consecutive quarter, representing over half of total investments. During this period, private investments increased by 35.4% year-on-year, whereas public investments declined by 25.7%,<ref>{{cite news |title=Egyptian Economy Grows at Quickest Quarterly Pace Since 2022 |url=https://www.bloomberg.com/news/articles/2025-03-26/egyptian-economy-grows-at-quickest-quarterly-pace-since-2022?embedded-checkout=true |work=Bloomberg |date=26 March 2025 |access-date=27 March 2025}}</ref> marking a significant departure from Egypt’s recent history of public investment dominance. === Opportunity cost of conflict === A report<ref name="strategicforesight.com">[http://www.strategicforesight.com/publication_pdf/39166Cost%20of%20Conflict%20in%20the%20Middle%20East.pdf], Strategic Foresight Group report: Cost of Conflict in the Middle East 2009</ref> by [[Strategic Foresight Group]] has calculated the opportunity [[cost of conflict]] for Egypt since 1991 is almost US $800 billion. In other words, had there been peace since 1991, an average Egyptian citizen would be earning over US $3,000 a year instead of US $1,700. == See also == * [[The Sovereign Fund of Egypt]] * [[Egypt]] * [[Emerging markets]] * [[List of companies of Egypt]] * [[Jim O'Neill, Baron O'Neill of Gatley#Next Eleven|Next Eleven]] * [[Qualifying Industrial Zone]] * [[Waste Management in Egypt]] * United Nations Economic Commission for: [[United Nations Economic Commission for Africa|Africa]] & [[United Nations Economic and Social Commission for Western Asia|Western Asia]] {{reflist|group=note}} == References == {{Reflist|30em}} == Sources == * {{Citation |last=Cook |first=Steven A. |author-link=Steven A. Cook |title=The Struggle for Egypt: From Nasser to Tahrir Square |publisher=[[Oxford University Press]] |location=New York |year=2011 |isbn=978-0-19-979526-0}} * {{cite book|contributor-last1=Greaves |contributor-first1=R. H. |contributor-last2=Little |contributor-first2=O. H. |contribution=Gold Resources of Egypt |author=International Geological Congress |title=Compte Rendu of the XV Session, South Africa, 1929 |date=1930|page=123 |location=Pretoria |publisher=Wallach}} * {{cite book|last=Lucas|first=Alfred|title=Ancient Egyptian Materials and Industries|url=https://archive.org/details/ancientegyptianm0000aluc|edition=4th|date=1962|publisher=Edward Arnold|location=London}} * {{Cite book|year=1998|last=Manuelian | first = Peter Der|title=Egypt: The World of the Pharaohs|location=Bonner Straße, Cologne Germany|publisher=Könemann Verlagsgesellschaft mbH|isbn=3-89508-913-3}} * {{cite book |last=Meskell|first=Lynn|author-link=Lynn Meskell|title=Object Worlds in Ancient Egypt: Material Biographies Past and Present|url=https://books.google.com/books?id=YLISEAAAQBAJ&pg=PP1|date=2004|publisher=Berg|isbn=978-1-85973-867-2}} * {{cite book |editor1-last=Nicholson|editor1-first=Paul T.|editor2-last=Shaw|editor2-first=Ian|title=Ancient Egyptian Materials and Technology|url=https://books.google.com/books?id=Vj7A9jJrZP0C&pg=PP1|date=2000|publisher=Cambridge University Press|isbn=978-0-521-45257-1}} == External links == * [http://www.imf.org/external/pubs/ft/survey/so/2008/CAR021308A.htm Egypt: Reforms Trigger Economic Growth] * [http://www.transparency.org/ Transparency International] website * [http://wits.worldbank.org/CountryProfile/Country/EGY/Year/2012/Summary World Bank Summary Trade Statistics Egypt] * [http://lebanese-economy-forum.com/world-facts/show/eg-economy/ Economy of Egypt] extracted from the CIA Factbook & Worldbank data {{Economy of Egypt}} {{World Trade Organization}} {{Egypt topics}} {{Africa in topic|Economy of}} {{Asia topic|Economy of}} [[Category:African Union member economies|Egypt]] [[Category:Economy of Egypt| ]] [[Category:Economy of the Arab League]] [[Category:World Trade Organization member economies|Egypt]]
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