Page 8 - ADT NOVEMBER - DECEMBER 2021 Online Magazine

newly established sovereign wealth fund announced that it was [ COVER STORY ]
preparing to float shares in up to ten military companies on the
country’s stock exchange.

Egypt’s Minister of Planning Hala El-Saeed has said the sale of mili-
tary companies would mark a historic shift in how Egypt’s economy
us structured. The ultimate result could be to deepen the private
sector’s dependence on government-led growth, extending the
trend of the past several years. This new effort to raise capital
through private investments is an elaboration of the political econ-
omy of the Sisi government that has been taking shape since the
coup in 2013.
to around US$4 billion. Annual appropriations
The growth sectors of Egypt’s economy have a large presence legislation includes several conditions govern-
of military-owned enterprises. Egypt boasts one of the most ing the release of these funds. Successive U.S.
advanced defence industries in the Arab world, supported by a Administrations have justified aid to Egypt as
robust industrial complex, particularly in the production of vehicles. an investment in regional stability, built primarily
Egypt assembles a variety of trainer aircraft, alongside armoured on long -running cooperation with the Egyptian
fighting vehicles (AFVs), artillery pieces, surface-to-air missiles, military and on sustaining the 1979 Egyptian
and M1A1 Abrams tanks. There are also 16 factories affiliated to Israeli peace treaty. All U.S. military aid to Egypt
the Ministry of Military Production, which produce military apparel. finances the procurement of weapons systems
Although Egypt lacks a substantial armaments design industry, and services from U.S. defence contractors.
it remains the most prolific manufacturer of military equipment
among Arab states. It should be noted that military expenditure
and defence budgets within Egypt are difficult to calculate owing For FY2022, the Biden Administration has
to the lack of information available. requested US$1.4 billion in bilateral assistance
for Egypt, the same amount Congress appro-
priated the previous year. Nearly all of the U.S.
U.S.-Egypt Relations funds for Egypt come from the Foreign Military
Since taking office, U.S. President Joe Biden has balanced some Financing (FMF) account. All U.S. military aid
considerations in his approach to U.S.-Egyptian relations, praising to Egypt finances the procurement of weap-
Egyptian diplomacy while signaling U.S. displeasure for President ons systems and services from U.S. defence
Sisi’s continued domestic crackdown. In the year after the United contractors. As Egypt has reasserted its role
States started facilitating the historic Abraham Accords between as Israel’s main security partner in the region,
Israel and various Arab states, Egypt, which has maintained its it has also sought to build new alliances based
peace treaty with Israel since 1979, has earned praise from U.S. on historical relationship. By partnering with
officials by increasing its diplomatic outreach to Israel. Jordan and Iraq, Egypt is now working to fully
establish an “Arab Alliance”. While this under-
Since 1946, the United States has provided Egypt with over US$84 taking initially sought to restart failed peace
billion in bilateral foreign aid, with military and economic assistance negotiations between the Israelis and the
increasing significantly after 1979. It is the 2nd largest recipient Palestinians, it now aims to strengthen eco-
of US military aid behind Israel, sales which in its turn amounts nomic ties between the three countries.

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