-OpEd-
CAIRO — In the heart of Cairo, what’s known as the “New Administrative Capital” rises toward the Egyptian sun — a gleaming metropolis boasting modern skyscrapers, expansive malls, and luxury residences. This $45 billion megacity stands as a testament to Egypt’s ambitious vision under President Abdel Fattah al-Sisi.
However, beneath its polished surface lies a more complex reality: the vast complex was constructed with significant funding from Gulf nations, which adds to the ever growing influence that foreign nations have over Egypt’s economic and political landscape.
The Egyptian economy, once a regional powerhouse, has been strained by years of financial mismanagement and escalating external debt. In response, Gulf nations have injected billions of petrodollars, positioning themselves as essential partners in Egypt’s would-be economic revival. Yet, this assistance often comes with strings attached, raising uncomfortable questions about Egypt’s sovereignty.
Gulf nations defend the investments as a way to boost a troubled but treasured Middle Eastern nation. Saudi Investment Minister Khalid Al-Falih recently explained that Egypt is viewed not merely as an investment opportunity but as a vital ally in the region.
A stranglehold on Egypt’s assets
The influx of Gulf capital has led to significant acquisitions across various sectors, including ports, real estate, agriculture, banking, and media. For instance, the UAE’s Abu Dhabi Holding Company has invested heavily in Egypt’s largest banks and industrial firms. Emirati developers have transformed Cairo’s skyline with projects that often cater to Gulf elites.
The transfer of strategic assets marks a deeper erosion of national autonomy than routine foreign investments, underscoring a troubling trend. In 2016, Egypt ceded the Tiran and Sanafir islands to Saudi Arabia, a move seen by many as a financial arrangement. More recently, a $35 billion deal with the UAE aims to develop Ras El-Hikma — an Egyptian village on the coast of the Mediterranean — into a luxury tourist and financial hub, raising concerns about national sovereignty.
The high cost of dependency
While the Egyptian government asserts that Gulf investments generate employment and foreign currency, critics argue that these deals disproportionately benefit Gulf interests, and a small elite inside Egypt. Timothy E. Kaldas from the Tahrir Institute cautioned in an interview that such projects might serve regime insiders more than the broader Egyptian populace. “Nothing will change if the government persists in the same policy followed for ten years,” he said. “This is the multiplication of extremely costly and poorly profitable mega-projects for the country’s economy, mainly benefiting a nebula of supporters and those close to the regime.”
The current trajectory is unsustainable.
This economic entanglement extends to foreign policy. As Gulf states normalize relations with Israel, Egypt’s traditionally firm stance on Palestinian rights has softened, reflecting its delicate position. Additionally, despite reports of abuse against Egyptian workers in the Gulf, the government has remained largely silent, prioritizing economic ties over national dignity.
The perception of Egyptians as subordinate labor in the Gulf has fueled racism and classism within the Arab world. This sentiment is exacerbated by Egypt’s economic dependency, which has diminished its regional standing.
Can Egypt break free?
Breaking free from this cycle necessitates more than rhetoric; it requires concrete action. Egypt must diversify investment sources, bolster local industries, and renegotiate agreements that compromise its sovereignty. Stricter regulations on foreign acquisitions, enhanced transparency in government dealings, and a renewed focus on self-sufficiency are crucial steps toward reclaiming economic independence.
The current trajectory is unsustainable. If Egypt continues to trade sovereignty for short-term financial relief, it risks becoming an extension of Gulf wealth and ambition. The choice is stark: reclaim independence or remain a nation for sale.
