Why Egypt's New Capital is Bankrupting the Country
Summary
TLDRThis video script explores the development of Egypt's new administrative capital city, a grand and expensive project aimed at alleviating Cairo's overpopulation and congestion. With a staggering $58 billion already spent, the project is far over budget and behind schedule. The new city, rising from the desert, showcases lavish government buildings, religious structures, and the world's tallest structures. However, the venture is mired in economic challenges, including soaring national debt and high inflation, leading to widespread poverty. The government's intent, beyond urban planning, includes creating a secure, isolated hub to prevent revolutionary uprisings, drawing parallels to France's historical move to Versailles. Despite economic hardships, external geopolitical interests, particularly from the Gulf States, the EU, and the US, ensure continuous support, recognizing Egypt's strategic importance in the region.
Takeaways
- 🏠 Egypt is building a massive, expensive new capital city 45 km east of Cairo, aiming to relocate the government and potentially embassies.
- 💸 The project, initiated in 2015 with a $45 billion budget, has exceeded $58 billion for phase one alone and is behind schedule.
- 🗼️ The new capital includes diverse districts, aiming for grandeur with the world's tallest flagpole and opulent governmental buildings.
- 🕌 It's designed to house up to 62 million residents, making it one of the largest urban projects of the 21st century.
- 🛣️ The government district will be larger than Washington DC's National Mall, housing 34 ministries and the presidential palace complex.
- 🏛 The cultural district includes the largest mosque in Egypt and the Middle East (outside Saudi Arabia) and the largest church in the Middle East.
- 🏢 The business district boasts Africa's tallest building, with plans for an even taller skyscraper to surpass Dubai's Burj Khalifa.
- 💰 Financing issues and economic challenges plague the project, amid Egypt's worsening debt, inflation, and currency devaluation crises.
- 👩💻 The government's handling of the project has sparked concerns over prioritizing opulence over the country's economic well-being.
- 💡 Officially, the project aims to alleviate Cairo's congestion and overpopulation, but it also serves to consolidate governmental control and distance from potential uprisings.
Q & A
Why is the Egyptian government building a new capital city in the desert?
-The Egyptian government is building a new capital to relieve congestion and reduce overpopulation in Cairo, address its rapid population growth, and improve government efficiency by centralizing its offices. Additionally, the move aims to create a modern city with advanced infrastructure, showcasing Egypt's development and ambition.
What are some key features of the new Egyptian capital?
-Key features include the government district, which will be larger than the National Mall in Washington D.C., housing 34 government ministries and the Cairo flag pole, one of the world's tallest. The city will also feature a new presidential palace, the Egyptian Grand Mosque, the Nativity of Christ Cathedral, a central business district with the Iconic Tower, sports facilities, and the Green River Park, symbolizing the Nile River.
How much is the cost overrun for phase one of the new capital, and what has caused it?
-The cost for phase one of the new capital has ballooned to over $58 billion, exceeding the initial budget by $13 billion. The overrun is attributed to the project's grand scale, opulence, and the construction of extravagant buildings and districts.
What challenges has Egypt faced during the construction of its new capital?
-Egypt has encountered delays, cost overruns, and economic challenges. The construction has fallen behind schedule, no foreign embassies have relocated yet, and the country is dealing with high government debt, inflation, and economic crises while a significant portion of the population lives in poverty.
What is the significance of the Egyptian Grand Mosque and the Nativity of Christ Cathedral being built close together?
-The close proximity of the Egyptian Grand Mosque and the Nativity of Christ Cathedral in the new capital symbolizes the peaceful coexistence between Egypt's Muslim majority and Christian minority, particularly highlighting the government's efforts to promote religious harmony.
How does Egypt's new capital project aim to address the country's overpopulation issue?
-The new capital aims to alleviate overpopulation in Cairo by providing a modern alternative for government offices, businesses, and potentially millions of residents. It seeks to decentralize the population and economic activities from Cairo, which is severely congested and overpopulated.
Why is the location of the new capital strategically important for Egypt?
-The location, east of Cairo, is strategically chosen to expand urban development into the desert, thus preserving the Nile Valley and Delta's limited agricultural land. It's also positioned to potentially improve security and governance by distancing government operations from the dense population centers.
What role does the international community play in Egypt's new capital project?
-The international community, including countries like the UAE and organizations like the IMF, plays a crucial role in providing financial support and investments. This external support helps sustain the project amidst Egypt's economic challenges but also influences Egypt's economic policies and strategic decisions.
How does the new capital's design aim to prevent potential uprisings?
-The new capital's design includes wide roads to hinder barricading, extensive surveillance systems inspired by Chinese models for monitoring, limited public transportation to control movement, and strategic placement of military headquarters to ensure rapid deployment against potential threats, thereby aiming to prevent uprisings similar to those Egypt experienced in the early 2010s.
What economic challenges does Egypt face that impact the new capital project?
-Egypt faces high government debt, severe inflation, currency devaluation, reliance on wheat imports affected by global crises, and significant economic disruptions from regional conflicts. These challenges strain the country's resources, impacting the funding and progress of the new capital project.
Outlines
🏗️ Egypt's Ambitious New Capital
Egypt is constructing a new, massive capital city in the Sahara Desert, 45 km east of Cairo, referred to as the 'New Administrative Capital'. The project aims to relocate government offices and embassies from Cairo to alleviate congestion and overpopulation. Initially projected to cost $45 billion and to be completed by 2022, the project has faced significant delays and budget overruns, with phase one already exceeding $58 billion. The new capital features extravagant districts and buildings, including a government district larger than Washington DC's National Mall, the world's tallest flagpole, a presidential palace significantly larger than the White House, and the Egyptian Grand Mosque, the largest in Africa. Despite the grandeur, the capital remains largely uninhabited, raising concerns about its feasibility and impact on Egypt's economy.
🕌 Religious Harmony and Economic Ambitions
The new capital of Egypt showcases efforts towards religious harmony by constructing the largest church in the Middle East, the Nativity of Christ Cathedral, near the Grand Mosque, symbolizing coexistence between Sunni Muslims and Coptic Orthodox Christians. Additionally, the city plans ambitious projects like the Iconic Tower, Africa's tallest building, and a potential world's tallest skyscraper, the Oblisco Capy. An Olympic City complex is also under development to bid for major sports events. However, the most colossal project is the Octagon, the new Ministry of Defense headquarters, far surpassing the Pentagon in size. These developments, aimed at decentralizing Cairo's dense population, also reflect the government's lavish spending amidst economic challenges.
📈 Population Pressure and Strategic Relocation
Egypt's rapid population growth, primarily concentrated along the Nile, has led to severe overcrowding and infrastructure strain in Cairo, the current capital. The government views the new capital as a solution to reduce congestion and improve living conditions. However, the project also serves a strategic purpose for President el-Sisi to mitigate political instability risks. By relocating government functions away from dense population centers, the new capital aims to reduce the likelihood of mass protests similar to those in 2011 and 2013 that significantly impacted Egyptian politics. The wide avenues and advanced surveillance in the new city are designed to discourage and control potential dissent.
🛡️ Securing Power Through Urban Planning
The new Egyptian capital's design reflects President el-Sisi's efforts to secure his regime against potential uprisings. By moving critical government functions away from Cairo, el-Sisi aims to make it challenging for mass protests to impact governance directly. The city's layout, surveillance systems, and limited public transportation are strategically planned to suppress dissent. Additionally, the proximity of the massive Ministry of Defense complex provides a rapid military response capability. This approach mirrors historical examples, like the French monarchy's move to Versailles, aimed at distancing rulers from the populace to maintain control.
🌍 Egypt's Economic Challenges Amid Grand Visions
Despite the grandeur of its new capital, Egypt faces significant economic challenges, including soaring debt, inflation, and currency devaluation. The extensive public spending on the new capital, funded by selling state assets and increasing government debt, has sparked concerns about financial sustainability. This spending comes at a time when a third of Egyptians live in poverty, and economic crises loom. The project's scale and cost, alongside Egypt's reliance on foreign loans and aid, raise questions about the long-term impact on the nation's economy and the government's priorities in addressing the needs of its people.
🌐 Geopolitical Dynamics and Foreign Support
Egypt's strategic location and large population make it a critical player in regional and global geopolitics, ensuring continued support from Gulf states, the EU, and the US despite its internal economic troubles. These external backers are motivated by interests ranging from maintaining stability and access to the Suez Canal to countering political Islamist movements. Investments and aid from these partners help sustain Egypt's economy and fund projects like the new capital, highlighting the complex interplay between Egypt's domestic ambitions and its geopolitical value. However, this external support also underscores concerns about Egypt's sovereignty and the implications of reliance on foreign assistance.
🔍 A Delicate Balance: Development and Stability
Egypt's development of its new capital reflects a balancing act between showcasing modernization and addressing economic vulnerabilities. The extensive foreign investments and aid underscore Egypt's geopolitical significance but also highlight the precarious nature of its financial stability. As the government pursues grand infrastructure projects, the economic realities of debt, inflation, and poverty pose significant challenges. The situation raises questions about the sustainability of Egypt's development model, which relies heavily on external support, and the potential consequences for its political and economic independence.
Mindmap
Keywords
💡New Administrative Capital
💡Overpopulation in Cairo
💡Economic Crisis
💡Military Involvement
💡Government Relocation
💡Infrastructure and Buildings
💡International Support
💡Public Opinion and Criticism
💡Suez Canal
💡Population Growth
Highlights
Egypt is constructing a massive new capital city in the Sahara Desert, east of Cairo, aiming to alleviate congestion in Cairo and serve as a new administrative hub.
The new capital is yet unnamed and is referred to as the New Administrative Capital, with ambitions to host 62 million residents, making it one of the largest urban projects of the 21st century.
Originally estimated at $45 billion, the cost for phase one of the capital has escalated to over $58 billion, significantly over budget.
The government district of the new capital is designed to be 80% larger than the National Mall in Washington D.C., featuring the world's tallest flagpole.
The new capital includes a sprawling presidential palace complex, vastly larger than the White House, with a throne hall decorated in solid gold.
Egypt's new Islamic Cultural Center within the capital is set to be the largest mosque in Africa and the Middle East outside of Saudi Arabia.
The Nativity of Christ Cathedral, built close to the Grand Mosque, symbolizes peaceful coexistence between Egypt’s Muslim and Christian communities.
The Central Business District features the Iconic Tower, the tallest building in Africa, and plans for the Obelisco Capitale, which would be the world’s tallest building.
The new capital's Olympic City aims to position Egypt as a future host for major international sports events.
The Ministry of Defense's new headquarters, known as the Octagon, is the world’s largest office building, significantly surpassing the Pentagon.
Despite the new capital's grandeur, Egypt faces severe economic challenges, including high government debt, inflation, and a depreciating currency.
The project has drawn criticism for its extravagant costs amid widespread poverty and economic crisis in Egypt.
The Egyptian government views the new capital as a means to prevent future revolts by distancing government operations from densely populated Cairo.
The new capital's design features wide avenues and extensive surveillance to counter potential protests, drawing inspiration from Chinese security systems.
International investments and aid, particularly from Gulf states and the European Union, play a crucial role in sustaining Egypt's economy and the capital project.
Egypt's strategic importance, due to its location and control of the Suez Canal, compels international support despite its domestic challenges.
Transcripts
something incredible is rising out of
what used to be the middle of nowhere in
the Sahara Desert 28 M or 45 km east of
Egypt's current capital city Cairo the
Egyptian government is busy building a
massive and exorbitantly expensive brand
new capital city from scratch an
official new name for this new capital
city has not yet been chosen and so it
so far has only been referred to by its
placeholder name the new administrative
Capital once it's completed the Egyptian
government plans to fully relocate all
of its offices and Personnel from the
old capital in Cairo and the government
willing encourage every foreign country
who has an embassy in Egypt to relocate
their own staff to the new capital as
well the government hopes that the new
capital will one day be home to 62
million residents after it's finished
being built which will almost certainly
make it the largest new settlement
founded anywhere in the world in the
21st century if it all goes according to
plan but for now despite all of the
Grandeur and scale this massive glittery
New Capital City rising out of the empty
desert remains about as empty as the aid
environment that surrounds it welc
construction has gotten itself far
behind schedule and enormously over
budget when the new capital was
initially proposed back in 2015 the
Egyptian government claimed that it
would all be constructed for only $45
billion and largely finished by 2022 but
now in 2024 only a handful of government
Ministries have been moved in no foreign
embassies have relocated at all and
construction is still ongoing while the
cost for only phase one of the new
capital has already ballooned to more
than $58 billion 13 billion dollars over
budget there are many reasons why but a
big part of it is simply because of the
sheer scale and opulence that's being
put on display by the government here
phase one of the new capital has
included the development of multiple
different districts within the new city
that will serve various different
purposes and many of them include some
of the most outrageous and absurd
buildings ever conceived of in human
history one of these districts arising
from the Sands is the government
District that will become the Egyptian
State's brand new nerve center once
completed this district is intended to
become the new headquarters for 34 of
Egypt's government Ministries in
addition to the country's two chambers
of parliament the House of
Representatives and the Senate at 550
acres in size this government district
will be Approximately 80% larger than
the National Mall is within America's
capital Washington DC and it'll contain
several more imposing buildings than are
present in Washington including the
world's tallest flag pole dubbed the
Cairo flag pole it was already raised in
2021 and stands 27 M or 680 ft High
considerably taller than the Washington
Monument is in DC while the flag it
flies is roughly the same size as two
standard basketball courts placed side
by side just to the north of this
sprawling government district is another
District of about equivalent size but
which is fully dedicated to only housing
the new presidential Palace complex
which will become the new home residence
of Egypt's President the building that
encompasses the presidential Palace
itself is enormous at around 50,000
square m of total floor space which for
perspective is roughly 10 times larger
than the White House in Washington DC
that serves as the American president's
residence and leaked photos of the
inside of the Egyptian Palace have
revealed what appears to be an ornate
Throne Hall that resembles the opulent
palaces of Islamic Sultans from
centuries past that has allegedly been
decorated with solid gold and then the
walls that surround the palace complex
will include a series of gardens that
Sproul across an estate more than two
square kilometers in area that's roughly
four times as large as the waloff
Vatican City is that's the home of the
Pope the new presidential Palace complex
alone has reportedly cost the Egyptian
State somewhere around $3 billion to
construct which puts it on a scale of
opulence comparable to Buckingham Palace
in London that's the home of the British
monarch and which has independently been
valued by appraisers to be worth
approximately $5
billion over on the opposite southern
end of the government district is
Egypt's new Islamic cultural Center a
mega mosque that is also sometimes
officially referred to as the Egyptian
Grand Mosque inaugurated only last year
in 2023 the Grand Mosque was a huge
undertaking drawing from traditional
medieval Egyptian mamalu Islamic
architecture it covers an area of
250,000 square m and can accommodate
more than 131,000 worshippers at a given
time which not only makes it the largest
mosque in Egypt but the largest mosque
on the entire African continent and the
largest mosque in in the Middle East
outside of Saudi Arabia's holiest
mosques in Mecca and Medina the Egyptian
Grand Mosque broke multiple World
Records when it was completed including
the heaviest and largest chandelier in
the world this more than 53,000 lb or
24,000 kg in weight with a diameter of
72 ft or 22 M and the highest pulpit in
the world it's nearly 17 M or 55 ft tall
and it's not even the only Mega
religious building to have been
constructed in the new capital there's
also the newly built Nativity of Christ
Cathedral nearby a mega church that's
the biggest church to have ever been
constructed in the Middle East the
church is a cathedral dedicated to
Egypt's Coptic Orthodox community and
the construction of the cathedral so
close to the Grand Mosque within the new
capital was deliberately designed as a
symbol of peaceful coexistence between
Egypt's two largest religious
communities well it's estimated that
around 90% of Egypt's contemporary
population are followers of Sunni Islam
the remaining 10% of the population
rested to be Coptic Orthodox Christians
which makes them by far Egypt's largest
religious minority group and with a
population of around 11 million in Egypt
they're also by far the largest
Christian Community in the Middle East
as well further west to these new
religious buildings in the government
district is going to be the new Capitol
Central business district with some
highly ambitious projects of its own
among them is the already completed
iconic Tower which was built with the
help of the China State construction
Engineering Corporation with a total of
79 floors coming out to
1,293 Ft or 394 m in height the iconic
Tower is already the tallest building in
Africa with an exterior shell designed
to resemble the crown worn by the
ancient Egyptian godam moon as depicted
in Egyptian hieroglyphics but apparently
not satisfied with merely having the
tallest building in Africa the new
capitals planners are evidently still
plotting to construct the tallest
building in the entire world within the
new Central business district as well
that'll be called the oblisco copy
taking its design inspiration from an
ancient Obelisk of fonic Egypt this Mega
tall skyscraper is currently planned to
have a total of 165 floors and a total
architectural height of 1,000 M or an
entire kilometer construction on the
building is currently expected to begin
sometime this year in 2024 and if
completed by its Target finishing date
of 2030 it will seize the title of the
tallest structure in the world from the
current record holder the bur Khalifa in
Dubai which would only stand 170 m
shorter than the oblisco copy Tall might
but the cost of this massive building
will carry with it an equally massive
price tag currently estimated to be at
least another $3.2 billion and even that
is probably a big underestimation and
since Egypt is already beginning to
encounter some pretty serious financial
difficulties it remains to be seen
whether or not this part of the project
will actually end up getting built or
not then there's also the brand new
Olympic City complex with than the new
capital which is being specifically
built to enable Egypt to be competitive
when they submit bids to host major
worldwide sporting events in the future
like the Olympics and the FIFA World Cup
more than 22 separate sporting
facilities are being constructed within
the complex including a major Neo
association football stadium that will
have a seating capacity for 94,000
people which will make it the second
largest football stadium in Africa and
the eighth largest one worldwide and
then in Phase one's southwest corner is
rising the single largest district and
building in the entire New Capital the
new headquarters for the Egyptian
Ministry of Defense known as the Octagon
considered far too important and large
to be mirely contained within the
regular government District of the new
capital that houses all of the 34 other
Egyptian government Ministries the
ministry of defense's new headquarters
here will consist of 10 new buildings in
an octagonal shape that will Sproul
across an area of more than 22,000 Acres
which is larger than the independent
nation of San Marino that's owned to
34,000 people the Octagon floor space
across these 10 buildings will include
approximately 505 million square ft of
area under roof which will make it by
far the biggest office building at
defense headquarters of any military in
the entire world coming in with nearly
eight times as much floor space as the
Pentagon near Washington DC that serves
as the headquarters for the US
Department of Defense this is despite
the fact that 1 of Egypt's defense
budget is provided as a grant by the
United States and even with that Grant
the Egyptian defense budget is currently
only the 35th largest in the world and
is lower than that of Belgium which
isn't exactly well known for being a
military Powerhouse deserving of the
largest military defense complex in the
world at any rate connecting all of
these districts together will be the
Green River Park flowing through the new
capital Center designed to symbolize the
flow of the Nile River itself through
Egypt in its first phase undergoing its
finishing touches right now the park
will be 6 M or about 10 km long which
will make it double the size of Central
Park in New York City and when it's
extended out to its fully intended size
in the future phases it's expected to
reach an almost comical length of 22 M
or 35 km which will make it roughly six
times larger than New York Central Park
by then eight fully residential
districts are also planned to be
constructed along the park perimeter
interspersed between wide Avenues and
highways that connect to the government
business religious and sports districts
with other smaller districts I didn't
even cover like an entirely separate
sports city a knowledge city intended to
be the site of foreign universities an
arts and culture City a banking District
a Medical Campus an expo City for
hosting major conventions and a brand
new big International Airport with all
of that being crammed together in here
it's fairly easy to see how it's gotten
to the point where the Egyptians have
already blown through more than $58
billion building this thing and it's all
coming at a time when Egypt's government
debt has soore to alltime highs
inflation is soore to all-time highs the
Egyptian currency is crashed to all-time
lows and the country is facing its worst
economic crisis in decades tens of
billions of dollars are being blown on
this extravagant New Capital City while
onethird of the Egyptian population
continues to live in poverty and the
people are dealing with all-time high
inflation in an all-time low valued
currency and so perhaps understandably
there's a genuine concern among many
that this flashy New Capital arising in
the desert is contributing to the
bankruptcy of the entire country and few
believe that Egypt can actually afford
this scale of extravagance in the desert
and so that then begs the question why
is the Egyptian government apparently so
willing to bankrupt itself to build this
massive new capital city in the first
place officially the Egyptian government
has stated that this new administrative
Capital project is primarily necessary
to relieve congestion and reduce
overpopulation in Cairo itself which is
a very big and crippling issue that the
country is actually struggling to
address Egypt's true shape isn't really
what you see it as on maps because most
of the country is dominated by the
inhospitable Sahara Desert where
Agriculture and life are each
practically impossible where it not for
the seemingly endless supplies of water
in the N River that carves across this
Barren landscape and fans out in the
north across a Delta region that empties
out into the Mediterranean Egypt would
likely be as sparsely populated and
Barren as neighboring Libya which only
has a population of fewer than 7 million
people but Egypt does have the Nile and
the Nile has brought Egypt life for
thousands of years it carves out what is
the largest Oasis in the entire world
and even today provides an overwhelming
97% of Egypt's entire supply of freshwat
the Nile Valley and the Nile Delta
regions of Egypt are therefore the true
cores of the country and everything else
around it to the west and to the East
are basically empty deserts that are
largely only useful for serving as
protective buffer zones of the core and
while the Nile River is very long it is
also very narrow which makes the valley
in the delta regions combined only about
the same area as Slovakia and Europe but
95% of Egypt's entire contemporary
population lives within either the small
Valley or the small Delta regions and
with a total estimated population in
2024 of 107 million people that's about
102 million Egyptians who are all
crammed up into a space that's only
about the same size as Slovakia which is
roughly equivalent to the combined
populations of all of Spain and Italy
this makes Egypt's core area within the
Nile Valley and Delta among the most
densely populated and overcrowded places
in the entire world with an average
population density across the region of
at least 2,000 people per square
kilometer this is Egypt's true shape and
so if Egypt's population density was
more accurately measured as being just
the density within the Nile Valley and
Delta it would be ranked as the third
most densely populated country in the
world remaining only behind the tiny
city states of Monaco and Singapore and
Egypt's population has been growing
rapidly for decades now now 74 years ago
now back in 1950 the entire Egyptian
population Nationwide was only a little
more than 21 million people and within a
single lifetime since then the country's
population has exploded more than five
times over again to the current
estimated population of around 107
million the largest population in the
Middle East and it's only expected to
continue growing even further from here
for several more decades to come as of
2023 the fertility rate in Egypt has
remained well above the world average
and continues to sit at around 2.8
children per woman and though it has
been decreasing with time Egypt's
population is still projected to climb
up to 160 million people by the middle
of the century in 2050 which will only
add further population strains on an
already very overcrowded country for an
American perspective Egypt's projected
population density in the Nile Valley