Egypt’s Expanding Military Economy

Source: Carnegie

Author(s): Mahmoud Khalid

Original Link: https://carnegieendowment.org/sada/81376

Egypt’s Sovereign Wealth Fund signed a cooperative agreement on February 3 with the National Service Projects Organization (NSPO). The NSPO is an apparatus affiliated with the armed forces that was established during the late President Anwar Sadat’s leadership to ensure self-sufficiency in the needs of the armed forces. It created surplus production in the local market, including construction, agriculture, food, and dairy. The NSPO also assisted economic development projects across the country, such as infrastructure and development projects in border provinces. Under President Abdel Fatah Al-Sisi, the NSPO’s powers have gradually expanded. The recent agreement is an attempt by the Egyptian Armed Forces to make NSPO’s assets more attractive to local and foreign invest ent and expand its ownership base by selecting economically successful companies affiliated with the NSPO and putting their shares for purchase on the stock exchange. Now, it is the biggest engine of the country’s economy, participating in all aspects of life and competing with the private sector.

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