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
and Delta by 2050 would be almost like
cramming the entire combined populations
of California Texas Florida New York
York Pennsylvania Illinois and Ohio all
simply into the state of West Virginia
Cairo alone the current capital and
largest city has swelled almost to the
Breaking Point with people having more
than nine times its population since
1950 to the point where today the city's
Metropolitan region is home to more than
22.6 million people more people than
were even alive across all of Egypt back
in 1950 and which makes Cairo the most
populous Metropolis in Africa and the
fifth most populous Metropolis Worldwide
having just recent recently surpassed
Mexico City to clinge the number five
spot and it will climb up several more
spots further in the near future at the
current projected levels of growth in
Cairo if nothing is done about it the
city's Metropolitan region is expected
to soar up to around 38 million people
by 2050 about the same population as
Tokyo has today by then Cairo will
likely be the second largest
metropolitan area in the world remaining
only behind the un's projections for
Mumbai in India which is likely to by
then become the number one largest City
Cairo has ever since become almost
synonymous with brutal traffic and
congestion to the point where Cairo
sometimes hardly even functions the
government's Ministries were built
spread out across the city back when it
was much much smaller and less congested
decades or even centuries ago and around
cairo's Central taher Square are many of
the government's most important
buildings such as the parliament the
ministry of the Interior the ministerial
cabinet the United States Embassy the
Supreme Court and the Ministry of
Foreign Affairs since security arounded
between all of these buildings is often
necessary and streets are often cordoned
off it's sometimes literally impossible
to travel between two separate points in
the city which makes government
operations and economic activity both
monstrously inefficient but the problem
is that Egypt doesn't really have very
much available space to build new
housing to pull the population away from
Cairo they have precious little
available Farmland to the north of Cairo
in the Nile Delta or further south
through the Nile Valley which eliminates
large scale Urban expansion into either
of those directions that leaves the
other unattractive choice of expanding
to the east or the west of Cairo into
the Sahara desert but since it's a less
terrible option than expanding north or
south and destroying preciously limited
agricultural land that's what the
Egyptians have tried doing for decades
the outskirts around Cairo are littered
with the attempts of previous
presidential administrations in Egypt to
build new cities to pull population away
from Cairo like the 6th of October City
to the West the 10th of Ramadan City to
the Northeast alabor City and the
biggest project before the recent New
Capital Project New Cairo City
established in 2000 that's today home to
1 and A2 million people but hardly any
public transportation was built linking
any of these new satellite cities in the
desert back to Cairo While most of the
housing Supply in them was dedicated
only to higher end housing so the only
Egyptians who could relocate themselves
out of Cairo into them were higher
income citizens who own cars which
aren't very many people which is why all
of these satellite Desert Cities are
only partially inhabited and have
considered fewer residents living in
them than they were originally designed
for but Egypt's current president Abdel
fatal CeCe has been repeatedly vocal
about his belief that Egypt's
overpopulation problem is the biggest
crisis the country is currently facing
in 2017 his government rolled out the
two is enough campaign in Cairo
encouraging Egyptian families to limit
themselves to only having two children
Eli has also praised China's Infamous
one child policy during speeches in the
past and he has tasked his own
government to reduce the nation wide
fertility rate down from the current
2.85 to just 2.11 by the early 2030s and
in addition to reducing the country's
fertility rate occe has also become the
latest in a long running line of
Egyptian presidents to try his hand at
building a new city Beyond Cairo to
relieve the city of some of its dense
population and congestion which is why
LC's government hopes that the new
administrative Capital project that
they're building out in the desert will
eventually be home to 62 million people
but relieving gestion and overpopulation
in Cairo is really just the publicly
stated reason for the whole big project
the other more quiet and less official
reason is to reduce the odds of Eli and
his authoritarian military regime from
getting overthrown during a revolution
or a couet while simultaneously
enriching himself and his supporters
along the way back in the early 2010s
Egypt was a pretty unstable Place
politically the country had been ruled
for nearly 30 years by a single longtime
strongman leader named hosy Mubarak who
had by 2011 for a variety of reasons
fallen out of favor with most of his
people protests against his continued
leadership gathered in Cairo Central tah
Square nearby to many of the Egyptian
government's most important offices and
the protest steadily evolved into a
full-blown Revolution that forced
mubaric from Power the Egyptian Armed
Forces then stepped in to temporarily
assume power in the country until a
democratic election could be hosted that
came the following Year in 2012 which
saw the Egyptian people democratically
elect an islamist to power from the
Muslim Brotherhood party known as
Muhammad morsey morsey then went on to
attempt and create a new islamist
leaning constitution in Egypt which
sparked further outrage in the country
and led to renewed Mass protests
erupting again just the following year
in 2013 that were finally taken
advantage of by Mor's then Minister of
Defense General Abdel fat CI Eli
initiated a military couet TI against
Mory and forcibly over through him from
power and then when fresh new elections
were hosted in 2014 they were boycotted
by all of the country opposition parties
occe emerged as Egypt's new president
part of what had made it so possible for
protesters and revolutionaries to
overthrow the Egyptian government twice
in 2011 and again in 2013 was their
ability to mass literally millions of
people into Cairo Central taher Square
that overwhelmed the narrow streets with
blockades that eliminated the
government's ability to access or even
defend its important offices nearby
which forced the government into
conceding to their demands it was how El
CC Rose to power in Egypt in the first
place and learning from the mistakes of
his predecessors it wasn't a coincidence
that within a year of him securing power
with the presidency in 2014 Eli
announced the plans for the brand new
capital city in 2015 by the time it's
eventually finished there will hardly be
any government power remaining within
Cairo at all all of the government's
Ministries the Parliament and LCC
himself will have all relocated
themselves 23 miles or 45 km east of
Cairo putting all of that distance
between themselves and the tens of
Millions ions of everyday Egyptians left
behind in order to replicate the
successful Revolutions of 2011 and 2013
millions of Egyptians would have to
travel out of their way from Cairo to
the new capital and since only around a
quarter of cairo's population even owns
a car that means that most of them are
going to have to travel by foot which
will take about 13 hours to walk across
the Sahara desert with likely multiple
military checkpoints placed all along
the way and then to complicate any
potential rebellion's odds of success in
the new cap Capital even further the new
capital is being designed in a way to
make any protest there as difficult as
possible all of the roads and avenues
are designed to be as wide as possible
to make barricading them as challenging
as possible a design that replicates
many other Capital Cities from around
the world more than 6,000 security
cameras are intended to be installed
within the new capital city that is
directly inspired from Chinese
government surveillance systems complete
with a similar Chinese fashioned Central
Command surveillance system that will
track everything going on in the capital
all times through the thousands of
cameras live broadcasts the city will
include hardly any public transportation
which will make moving the masses around
it challenging while the presence of the
military's massive new headquarters so
nearby at the Octagon complex will allow
the entire might of the Egyptian
Military to rapidly deploy a Crackdown
against any potential threats once
completed the new capital will firmly
separate the Egyptian government and
head of state from the Egyptian people
like a 21st century version of ver son
die more than 340 years ago French King
Louis the 14th made a similar policy
decision when he relocated his entire
court in seat of government away from
Paris towards his new exorbitant Palace
at Versa about 12 Mi or 19 km away from
the center of Paris for the next Century
after the move was made Versailles acted
as the deao capital of France over Paris
isolating the French monarchy and
government from the people they ruled
over in Paris and separating their
problems from the King but in the end
the French government's move to
Versailles made little difference as in
1789 more than a century after the move
was made the French Revolution exploded
and forced the monarchy and the
government back to Paris at gunpoint
where it has remained at ever since and
like Versa did for the French nobility
in separating the government from the
people the brand new Egyptian Capital
being built today is directly enriching
the government of Eli and his military
supporters as well in the beginning when
the new capital city was announced back
in 2015 L's government prompt that not 1
cent of Egyptian State funds would be
contributed to the new capital's
construction investors from the United
Arab Emirates were originally planned to
finance the entire project but that
original plan ended up falling through
when Chinese investors largely backed
out of the new capital project as well
L's government was forced to finance the
construction of everything through
Egypt's public resources by taking on
loans increasing the government's debt
selling state-owned land or by directly
allocating parts of the government
budget to the construction itself and
after the UAE investors fell through on
the new capital the Egyptian government
simply set up a brand new company to
oversee the capital's construction going
forward that they've called the
administrative capital for Urban
Development or acud which is
interestingly owned 51% by the Egyptian
Military and only 49% owned by the
Egyptian housing Ministry this company
is the one whoes most of the government
contracts to carry out the grandio
construction projects going on within
the capital and their financials are
completely non-transparent and not
subjected to public auditing or
independent oversight which is very
convenient high ranking members of the
Egyptian Military are significant
shareholders suppliers or supervisors
for the construction work going on and
they're likely all profiting to the tune
of billions of dollars off of the work
and since most of the money for the
capital has come from Egypt's public
resources this entire new capital city
project has essentially been a massive
wealth transfer from the Egyptian public
to the Egyptian generals and to LCC
himself and as the whole project has
become a bottomless black hole for money
with more than 58 billion dumped into it
already Egypt has had to take on more
loans and more debt to pay for it all as
crisis after crisis since 2015 has
pounded the country's finances even
further after LCC in the military
overthrew morsy in the Muslim
Brotherhood in 2013 an islamist
Insurgency in opposition to the new
military regime has been raised Aging in
the vast rugged sparsely populated and
difficult to control Cai Peninsula the
Egyptian Army has lost more than 3,200
soldiers fighting against this
Insurgency in the Sinai since it began
which is more than how many US troops
were lost across 20 years of
counterinsurgency operations in
Afghanistan the Sinai Insurgency has
represented the most major internal
security crisis for the Egyptian state
to deal with while multiple external
crises have made Egypt's economic
situation even worse there was the
covid-19 pandemic that began in 2020
that rocked every country in the world
and then Russia's invasion of Ukraine in
2022 impacted Egypt especially hard
because of their exports of wheat to the
country without enough aable land along
the narrow banks of the Nile to provide
for its own buring population growth
Egypt has been forced to import the
majority of its wheat supplies from
abroad which has made the country the
largest wheat importer in the entire
world roughly 55% of the country's wheat
Supply was imported from abroad and in
2022 immediately before the war in
Ukraine began about 60% of Egypt's
imported wheat was coming from Russia
and another 22% of it was coming from
Ukraine the outbreak of war in Ukraine
and in the Black Sea sent Global wheat
prices skyrocketing and hampered Egypt's
access to its usual sources of imports
which rocked the country's economy even
further then in early 2023 a
catastrophic Civil War exploded
immediately to the south of Egypt and
Sudan which is sent hundreds of
thousands of refugees fleeing northward
into Egypt and then in October of 2023
another massive war exploded on Egypt's
borders in Gaza between Israel and Hamas
which dealt an even further double shock
to the Egyptian economy tourism to the
country which usually contributes
roughly 8% of the country's GDP and
which provided roughly $4 billion worth
of revenues for Egypt in 2023 completely
crashed in the wake of the massive war
breaking out directly next door in Gaza
while at the same time the wars after
shocks have devast stated another major
Revenue source for Cairo as well the
Suez Canal the canal is generally
understood to probably be the greatest
single asset that Egypt possesses since
in a given year roughly 12% of all
Global Seaborn trade will pass through
it and the Egyptian government profits
off of it by charging tolls and fees on
all of that trade to use the canal in
the fiscal year from Summer 2022 to
Summer 2023 the Suez Canal returned an
all-time high Revenue stream to the
Egyptian government of 9.4 billion
but since then the houthis an Iranian
backed faction in Yemen who controls
most of the country's major population
centers declared that they would begin
attacking Israeli American and British
Merchant shipping nearby them in the Red
Sea in support of their Ally Hamas and
Gaza those attacks have ended up being
fairly indiscriminate on Merchant
shipping from just about everywhere and
it's caused a massive crash in merchant
shipping traveling through the Red Sea
in the Suz Canal which is
correspondingly caused the revenue
coming to Egypt from the tolls on the
Suz Canal to crash by roughly half as a
result of all of these crises piling up
on top of each other for Egypt recently
and due to the government's continued
drive forward with plowing tens of
billions of dollars into the new capital
anyway despite them Egypt's financial
situation has deteriorated to its most
dire scene in decades since LCC formerly
became Egypt's President a decade ago
back in 2014 Egypt's external debt
levels have quadrupled to more than
$164 billion while the entire government
debt including internal debt has soared
to nearly $370 billion which is roughly
93% of the country's total GDP and again
44% of Egypt's total national debt is
Zed externally by comparison the United
States national debt is currently at
123% of its GDP a larger percentage than
Egypts but only 24% of America's
national debt is owed externally a much
lower percentage than Egypts many of
these external loans to Egypt have come
from the international monetary fund or
IMF which Egypt now owes approximately
$18 billion to as of 2023 which
currently makes Egypt the second largest
IMF debtor in the World Behind only
Argentina in order to secure many of
these loans over the past several years
the Egyptian government was required to
devalue its currency many many times
five rounds of the Egyptian currency
being devalued later since 2016 but the
latest devaluation taky plays just a few
days before I released this video the
Egyptian pound the country's currency
has lost about 90% of its value compared
to the US dollar since occe took office
as the country's president with1 us now
trading on the market for around 50
Egyptian pounds when it used to be $1 us
for five Egyptian pounds back in
2016 correspondingly these frequent and
sharp devaluations in Egypt's currency
combined with unexpected price shocks to
Egypt's imported resources like wheat
and oil due to the war in Ukraine have
led to skyrocketing inflation in the
country which has peaked at an annual
rate of 36% which are the highest levels
of inflation that Egypt has ever seen in
its modern history the cratering value
of the Egyptian currency and the
country's exploding debt has also meant
that as of 2024 the country is spending
around 60% of its entire government
budget simply servicing all of its debt
obligations all while construction on
the glittery new capital is continued on
with very little cuts from the original
plan being made the plans for affordable
housing in the new capital appear to
have been cut while construction on the
mon rail line that was intended to link
downtown Cairo with the new capital also
appears to have been halted as well
which are all maybe features rather than
bugs designed to further separate the
wealthy Egyptians connected to the
government in the new capital from the
poor everyday Egyptians left behind in
Cairo and as recently as December of
last year in 2023 Bloomberg economists
had ranked Egypt as the second most
likely country in the world to default
on its deaths remaining only just barely
behind the odds of War torn Ukraine
defaulting on its own debts and there's
few ways for Egypt's current regime to
really get itself out of this mess the
IMF has demanded that 's military
dominated government begin loosening its
own control over the economy to enable
an environment for private businesses to
thrive the Egyptian Military dominates
pretty much every facet of the economy
in the country from construction to
tourism to even food production and
pharmaceutical the Egyptian Military
owns and operates most of the major
businesses in the country's economy
themselves the Egyptian Military has
often been referred to as being a state
within a state inside of Egypt and so if
the former General turned president El
CE he was to turn on them by privatizing
many of their business interests they
would probably just turn on him and
overthrow him and replace him with
somebody else which means that he's
largely powerless to actually adopt most
of the economic reforms in Egypt that
organizations like the IMF have demanded
which means he's more likely to keep
being dependent on continuing the
country's economic Doom cycle by
borrowing more money from abroad and
increasing the debt to pay for servicing
the previous debt which will continue to
run the currency into the ground and
increase the country's inflation rate
which pisses off the Egyptian public
against him even more which increases
his own personal need to have a brand
new capital separate from the people who
could overthrow him even further which
increases his needs to keep pouring
money into finishing the new capital
project which increases his needs for
acquiring more loans and starting the
Doom cycle all over again it is all by
far far the worst economic crisis that
Egypt has ever faced in its modern
history and people have been predicting
Egypt's imminent collapse beneath all of
these pressures for years now but far
from collapsing more money from abroad
has just continued gushing into Egypt to
keep the country alive and functioning
anyway despite all of its troubles
because to many people on the outside
Egypt is simply too big of a country to
ever allow it to collapse especially
right now well economically Egypt is
only a fairly minor power in the middle
East with a much smaller GDP than turkey
Saudi Arabia the United Arab Emirates
and Israel the country has by far the
Region's largest human population and a
governmental collapse with that many
people in this region could cause untold
amounts of chaos the gulf Arab states
led by Saudi Arabia with the UAE Bahrain
and Kuwait tagging along have also all
been heavily geopolitically incentivized
to keep a stable government around in
Egypt who they can actually get along
with the European Union Market
represents a major export destination
for tens of billions of dollars of oil
and gas a year from around the Persian
Gulf and the quickest and most
economical route for all of that oil and
gas to take to Europe is through the Suz
Canal across Egypt without the Suz Canal
the Persian Gulf States would stand to
lose untold amounts of money by sending
their oil and gas exports to Europe the
long way around the entirety of Africa
so a compliant and stable government
within Egypt that continues letting them
use the canal for cheap is imperative to
them this is a big reason why Saudi
Arabia the UAE and Kuwait all became
highly concerned with the Egypt's
government in 2012 when the islamist
Muhammad morsy and his Muslim
Brotherhood came to power in the country
after the chaos of the 2011 Revolution
like most political islamist movements
the Muslim Brotherhood advocates for the
supremacy of the Islamic faith and
government over what they view as
secular man-made monarchies like the
Saudis which is why the Saudis the
Emirates Kuwait and Bahrain all
interpret the Brotherhood as a major
direct threat to their own monarchical
Rule and which is why most of them have
even gone so far as to formally
designate the Brotherhood as a terrorist
organization you see there's a sort of
cold war going on across the Middle East
between the monarchist gulf Arab powers
on one side led by the Saudis and amadis
who are opposed to political islamist
movements like the Brotherhood and on
the other side are the countries who
more openly back political islamist
movements in the region led by The Duo
of turkey and Qatar so when the
Brotherhood came to power in Egypt in
2012 turkey and Qatar were each
delighted while the Saudis and amadis
were terrified not wishing to see Egypt
fall into the camp of their political
islamist Rivals the Saudis Emirates and
kuwes all backed abdelati cce's military
coup that overthrew the Brotherhood
government in Egypt in 2013 and Egypt's
military dominated government has firmly
remained within their anti-islamist
dominated faction ever since in order to
then keep the country's stability going
in the midst of its huge recent economic
problems the gulf Arab State sunk more
than $34 billion
in the Red Sea region and increased
influence over both Israel and Jordan as
well and the Saudis haven't even been
the only ones buying up strategically
valuable land in Egypt to fund the
country's government and keep it from
collapsing in March of 2024 just as I
was making this video the United Arab
Emirates confirmed that they would be
investing a truly massive $35 billion
into Egypt for the exclusive rights to
develop multiple new projects in the
country including $24 billion for the
Emirates exclusive rights to develop the
rossel hecma area on a cape on the
Egyptian Mediterranean Shoreline around
200 km west of Egypt's second largest
city Alexandria the Emirates now plan to
transform this area into a massive new
seaside resort town on the Mediterranean
that they hope they'll eventually be
able to profit from while the injection
of so much Emirate cash into the
desperate Egyptian economy likely
averted the country from defaulting this
year and facing a catastrophic new
crisis it represents the single largest
foreign investment ever put into Egypt
in its entire history and it represents
more money than the Gulf States
collectively poured into Egypt for a
decade between 2013 and
2022 which is perhaps a sign of how dire
the economic situation had truly become
in Egypt and the amirati cash for
Egyptian assets like Ras Al hecma hasn't
even been the only money the country has
received recently Egypt stability is
important to the European Union too
because the country is one of the
primary Avenues of Refugee and migrant
flows into Southern European countries
like Greece and so rather than see the
country's economy collapse and the
unpredictability that would follow from
that the EU has recently been floating
the idea around of an 8 billion Aid
package to Egypt as well and Egypt and
its stability is also very very very
important to the United States as well
Egypt was after all the very first Arab
country to ever make peace with Israel
and recognized the Jewish State back in
1979 ever since then Washington is s a
trans form Egypt's early recognition of
Israel's existence into an example for
the rest of the Arab world to follow by
basically rewarding Egypt as much as
possible for having done it Egypt
alongside Israel each became officially
classified by Washington as major
non-nato allies in 1989 and each have
become the pillars of Washington's
military strategy and footprint in the
Middle East region ever since since
making peace with Israel in 1979 Egypt
has been the second largest recipient of
United States foreign aid in the world
only after Israel itself and a whopping
$ 51 billion of that American foreign
aid to Egypt has been military aid since
1985 All American military aid to Egypt
has been considered grants that have
never been needed to be paid back and
Washington is usually maintained a grant
of about $1.3 billion in military aid to
Egypt on an annual basis ever since
Egypt's willingness to cooperate with
Israel and its possession of the Suez
Canal both make it a highly important
partner to Washington because the canal
enables a American warships including
aircraft carriers to rapidly redeploy
between the Mediterranean theater and
the Indo Pacific which enables American
warships to quickly move between threats
posed by States like Russia Syria or
Libya in the Mediterranean and threats
posed by States like Iran and their
proxies like the houthis in the Indo
Pacific moreover the sus Canal also
provides the quickest possible trade
route for Persian Gulf oil and gas to
reach America's NATO allies in Europe
which has become even more important
since the Russian invasion of Ukraine
began and European NATO allies increased
Reliance on Persian Gulf oil and gas and
replacement of Russian oil and gas and
Egypt's stability became even more
important to Washington after the
outbreak of war between Israel and Hamas
and Gaza after October 7th Egypt
controls the only border with Gaza that
isn't controlled by the Israelis and
with the war still raging there and with
other potential conflicts that could
break out in Lebanon and the Red Sea or
with Iran itself Washington does not
want Egypt to collapse into a revolution
again that could could end up adding
fuel to the already burning fire in the
region with an unpredictable new
government and so Washington 2o has been
incentivized to continue providing Egypt
with its generous foreign aid to
Washington along with the Israelis and
the gulf era monarchies L CC may be an
authoritarian leader who's burning tens
of billions of dollars building an
economically destructive brand new
capital city in the desert as his
country's economy collapses and as his
people grow poorer but he's also
predictable reliable and most of all
friendly to them in a region of the
world that is almost synonymous with
geopolitics violence and instability and
they can take advantage of Egypt's need
for cash by buying some of Egypt's
assets at Bargain Bin prices along the
way the area on the map that Egypt
occupies and its massive population
makes it simply too big for any of LC's
outside allies to ever allow it to fail
which enables LCC and the Egyptian
Military to continue borrowing enough
money from them or selling enough assets
to them to continue staying AF float but
it's all a delicate house of cards that
risks Egypt's outside backers eventually
losing patience are calculating that the
cost of supporting egyp stability are no
longer worth the high price that they're
paying Egypt's New Capital arising in
the desert is the symbol of this
International calculus that considers
the value of Egypt's geopolitical worth
stacked up against a seemingly
bottomless Money Pit so long as the
equation remains in Egypt's favor their
construction on the mega projects in the
new capital are likely to continue
moving forward word but if the calculus
ever shifts and Egypt's outside
supporters stop sending in more cash
then Egypt's new administrative Capital
may become tested by the Egyptian people
the same way that Versailles was tested
by the French people more than 235 years
ago now there's a lot of data that goes
into producing these kinds of videos
whether it's showing how tall Egypt's
proposed Mega tall skyscraper will stack
up against the Bish Khalifa how Egypt's
new military headquarters at the Octagon
compares to the sovereign country of San
Marino what Egypt's population density
pattern looks like or why Saudi Arabia
wanted to purchase these islands from
Egypt the ability to visualize raw data
like this on the map is exactly what
makes learning about these things so
fascinating to me and it's why the
exploring data visually course is one of
my favorite courses that I've ever taken
with this video sponsor brilliant.org
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