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Egyptian Military Dominates Economy Through Household Brands and Industrial Ventures
The Egyptian military has a substantial presence in the country’s economy, controlling stakes in a wide range of household brands and industrial products. From pasta to petrol stations, military-run enterprises are deeply integrated into daily life, highlighting the army’s long-standing economic role.
Driving through Cairo, many businesses, including restaurants, hotels, and even construction materials, are clearly marked as military-owned. Locals commonly refer to them as “Huwa gaysh” — “That’s army.” Even the ingredients for Egypt’s national dish, koshary, often come from military factories. The dish recently earned recognition from UNESCO as an intangible cultural heritage.
“What is extraordinary in Egypt is that a lot of these products made in military factories are sold in the general economy,” said Matteo Colombo, research fellow at the Netherlands Institute of International Relations Clingendael. “If you go to an Egyptian supermarket, you can easily find a bottle of water that is produced by the army.”
The International Monetary Fund has agreed to lend Egypt €6.8 billion to address economic challenges, but disbursements have been delayed, citing an economy “dominated by public-driven investments, an uneven playing field, and state-owned entities, including military ones.”
Egypt’s military involvement in the economy is not a recent development. It began under President Gamal Abdel Nasser in the 1950s and 1960s, when the army was used to centralize state control and ensure rapid response in times of crisis. His successor, Anwar el-Sadat, formalized the army’s role in civilian production by establishing the National Service Projects Organization in 1979, which oversaw military production of both civilian and defense goods.
“The military’s share of any market sector was small before 2011, but grew dramatically in ‘strategic’ sectors such as cement and steel, building on strong presidential support and the military’s political dominance,” said Yezid Sayigh, author of Owners of the Republic: An Anatomy of Egypt’s Military Economy. The 2011 revolution further accelerated the military’s economic expansion, giving it a direct role in policy-making and state investment strategy.
Since 2015, Egypt has faced severe economic pressures. Inflation peaked at 38 percent in September 2023 and slowed to 12.3 percent, while the Egyptian pound has depreciated sharply, dropping from 9 per euro in 2015 to over 55 today. Analysts suggest that military involvement may help stabilize prices for consumers, offering affordable products while fostering a sense of national pride.
However, experts caution that the army’s dominance creates an uneven market. “You run the risk that if you have a large military production, you have fewer possibilities for others,” Colombo said. Sayigh added that the army’s control diverts credit, dominates investment opportunities, and raises costs for private actors, limiting broader economic growth.
Despite the military’s extensive involvement, the exact scale of its economic holdings remains unclear. “People try to find out the percentage of the Egyptian economy that is controlled by the military. I think that’s the wrong question. No one knows. Not even they know,” said Khaled Fahmy, professor of Middle Eastern Studies at Tufts University.
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EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
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