Why Egypt's New Capital is Bankrupting the Country

RealLifeLore
29 Mar 202444:27

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

00:00

🏗️ 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.

05:02

🕌 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.

10:03

📈 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.

15:04

🛡️ 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.

20:05

🌍 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.

25:06

🌐 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.

30:08

🔍 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

The New Administrative Capital is a massive, exorbitantly expensive urban development project initiated by the Egyptian government, aimed at relocating the country's capital from Cairo to a new location in the desert, 45 km east of Cairo. This project is characterized by its grand scale and ambition, including various districts with specific functions, such as government buildings, cultural centers, and residential areas. It serves as a response to overpopulation and congestion in Cairo, but has faced significant delays and cost overruns, raising concerns about its impact on Egypt's economy.

💡Overpopulation in Cairo

Overpopulation in Cairo is identified as a critical issue, with the city's population density among the highest in the world. This has led to severe congestion, inefficiency in government operations, and a strain on resources. The Egyptian government views the New Administrative Capital project as a solution to alleviate these problems by redistributing the population and creating a more manageable urban environment. However, the effectiveness of this strategy remains to be seen.

💡Economic Crisis

Egypt faces a profound economic crisis characterized by soaring debt, high inflation, and a depreciating currency. The crisis is exacerbated by the enormous financial burden of constructing the New Administrative Capital, alongside other external and internal challenges like global pandemics and geopolitical conflicts. Despite these economic woes, the project continues, funded by substantial public resources and loans, raising concerns about its sustainability and impact on the nation's financial health.

💡Military Involvement

The Egyptian military plays a significant role in the country's economy and the New Administrative Capital project. It is deeply involved in various sectors and oversees the construction of the new capital through a government-owned company, benefiting financially from contracts and investments. This involvement reflects the military's broader influence in Egypt's political and economic life, complicating efforts for economic reform and raising questions about transparency and accountability.

💡Government Relocation

The relocation of Egypt's government to the New Administrative Capital is a central aspect of the project, intended to decentralize administrative functions from Cairo. This move includes transferring ministries, parliament, and the presidential palace to the new city, aiming to improve operational efficiency and security. However, it also represents a physical and symbolic separation of the government from the populace, potentially impacting governance and public access.

💡Infrastructure and Buildings

The New Administrative Capital features ambitious infrastructure and building projects, including the world's tallest flagpole, a sprawling government district, and a mega mosque. These structures symbolize the government's vision of grandeur and modernity but also highlight the project's enormous financial scale. Critics argue that the focus on opulent buildings contrasts sharply with the country's broader economic difficulties and priorities.

💡International Support

International support, particularly from Gulf States and the European Union, plays a crucial role in sustaining Egypt's economy and the capital project. Investments and aid packages from these external partners are aimed at stabilizing Egypt politically and economically, reflecting the country's strategic importance. However, this support also ties Egypt's financial stability to geopolitical interests, creating a complex web of dependencies.

💡Public Opinion and Criticism

Public opinion and criticism concerning the New Administrative Capital and Egypt's economic direction are mixed. While some view the project as a necessary step toward modernization and decongestion, others see it as an extravagant misuse of resources amid widespread poverty and economic hardship. The government's prioritization of this grand project over immediate economic challenges has sparked debate about its long-term viability and social equity.

💡Suez Canal

The Suez Canal is highlighted as a vital economic asset for Egypt, facilitating global trade and generating significant revenue for the government. However, geopolitical conflicts and security threats in the region have impacted its operations and earnings, demonstrating the canal's sensitivity to external factors. The canal's importance underscores Egypt's strategic location and its role in international maritime trade.

💡Population Growth

Egypt's rapid population growth exacerbates the challenges of overpopulation, urban congestion, and resource allocation. The government views the New Administrative Capital as a part of its strategy to manage this growth by creating new urban spaces. However, the project's ability to effectively address the underlying issues of fertility rates and population distribution remains uncertain, with significant implications for the country's future demographic and economic landscape.

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

00:00

something incredible is rising out of

00:01

what used to be the middle of nowhere in

00:03

the Sahara Desert 28 M or 45 km east of

00:06

Egypt's current capital city Cairo the

00:08

Egyptian government is busy building a

00:10

massive and exorbitantly expensive brand

00:13

new capital city from scratch an

00:15

official new name for this new capital

00:17

city has not yet been chosen and so it

00:19

so far has only been referred to by its

00:20

placeholder name the new administrative

00:22

Capital once it's completed the Egyptian

00:24

government plans to fully relocate all

00:26

of its offices and Personnel from the

00:27

old capital in Cairo and the government

00:29

willing encourage every foreign country

00:31

who has an embassy in Egypt to relocate

00:32

their own staff to the new capital as

00:34

well the government hopes that the new

00:36

capital will one day be home to 62

00:38

million residents after it's finished

00:40

being built which will almost certainly

00:42

make it the largest new settlement

00:44

founded anywhere in the world in the

00:45

21st century if it all goes according to

00:48

plan but for now despite all of the

00:51

Grandeur and scale this massive glittery

00:53

New Capital City rising out of the empty

00:55

desert remains about as empty as the aid

00:57

environment that surrounds it welc

00:59

construction has gotten itself far

01:01

behind schedule and enormously over

01:03

budget when the new capital was

01:05

initially proposed back in 2015 the

01:07

Egyptian government claimed that it

01:08

would all be constructed for only $45

01:11

billion and largely finished by 2022 but

01:14

now in 2024 only a handful of government

01:17

Ministries have been moved in no foreign

01:19

embassies have relocated at all and

01:20

construction is still ongoing while the

01:22

cost for only phase one of the new

01:24

capital has already ballooned to more

01:26

than $58 billion 13 billion dollars over

01:31

budget there are many reasons why but a

01:33

big part of it is simply because of the

01:35

sheer scale and opulence that's being

01:37

put on display by the government here

01:39

phase one of the new capital has

01:40

included the development of multiple

01:42

different districts within the new city

01:43

that will serve various different

01:45

purposes and many of them include some

01:47

of the most outrageous and absurd

01:49

buildings ever conceived of in human

01:51

history one of these districts arising

01:53

from the Sands is the government

01:54

District that will become the Egyptian

01:56

State's brand new nerve center once

01:58

completed this district is intended to

02:00

become the new headquarters for 34 of

02:03

Egypt's government Ministries in

02:05

addition to the country's two chambers

02:06

of parliament the House of

02:08

Representatives and the Senate at 550

02:10

acres in size this government district

02:12

will be Approximately 80% larger than

02:14

the National Mall is within America's

02:16

capital Washington DC and it'll contain

02:19

several more imposing buildings than are

02:21

present in Washington including the

02:23

world's tallest flag pole dubbed the

02:25

Cairo flag pole it was already raised in

02:27

2021 and stands 27 M or 680 ft High

02:32

considerably taller than the Washington

02:34

Monument is in DC while the flag it

02:37

flies is roughly the same size as two

02:39

standard basketball courts placed side

02:41

by side just to the north of this

02:43

sprawling government district is another

02:45

District of about equivalent size but

02:46

which is fully dedicated to only housing

02:49

the new presidential Palace complex

02:51

which will become the new home residence

02:53

of Egypt's President the building that

02:55

encompasses the presidential Palace

02:57

itself is enormous at around 50,000

03:00

square m of total floor space which for

03:02

perspective is roughly 10 times larger

03:05

than the White House in Washington DC

03:07

that serves as the American president's

03:09

residence and leaked photos of the

03:11

inside of the Egyptian Palace have

03:13

revealed what appears to be an ornate

03:14

Throne Hall that resembles the opulent

03:16

palaces of Islamic Sultans from

03:18

centuries past that has allegedly been

03:21

decorated with solid gold and then the

03:23

walls that surround the palace complex

03:25

will include a series of gardens that

03:27

Sproul across an estate more than two

03:29

square kilometers in area that's roughly

03:32

four times as large as the waloff

03:34

Vatican City is that's the home of the

03:36

Pope the new presidential Palace complex

03:38

alone has reportedly cost the Egyptian

03:40

State somewhere around $3 billion to

03:43

construct which puts it on a scale of

03:45

opulence comparable to Buckingham Palace

03:47

in London that's the home of the British

03:49

monarch and which has independently been

03:51

valued by appraisers to be worth

03:53

approximately $5

03:55

billion over on the opposite southern

03:57

end of the government district is

03:58

Egypt's new Islamic cultural Center a

04:00

mega mosque that is also sometimes

04:02

officially referred to as the Egyptian

04:04

Grand Mosque inaugurated only last year

04:07

in 2023 the Grand Mosque was a huge

04:10

undertaking drawing from traditional

04:12

medieval Egyptian mamalu Islamic

04:14

architecture it covers an area of

04:16

250,000 square m and can accommodate

04:19

more than 131,000 worshippers at a given

04:22

time which not only makes it the largest

04:24

mosque in Egypt but the largest mosque

04:26

on the entire African continent and the

04:29

largest mosque in in the Middle East

04:30

outside of Saudi Arabia's holiest

04:32

mosques in Mecca and Medina the Egyptian

04:34

Grand Mosque broke multiple World

04:36

Records when it was completed including

04:38

the heaviest and largest chandelier in

04:40

the world this more than 53,000 lb or

04:43

24,000 kg in weight with a diameter of

04:46

72 ft or 22 M and the highest pulpit in

04:51

the world it's nearly 17 M or 55 ft tall

04:55

and it's not even the only Mega

04:56

religious building to have been

04:58

constructed in the new capital there's

04:59

also the newly built Nativity of Christ

05:01

Cathedral nearby a mega church that's

05:04

the biggest church to have ever been

05:06

constructed in the Middle East the

05:07

church is a cathedral dedicated to

05:09

Egypt's Coptic Orthodox community and

05:11

the construction of the cathedral so

05:13

close to the Grand Mosque within the new

05:15

capital was deliberately designed as a

05:17

symbol of peaceful coexistence between

05:19

Egypt's two largest religious

05:21

communities well it's estimated that

05:23

around 90% of Egypt's contemporary

05:25

population are followers of Sunni Islam

05:27

the remaining 10% of the population

05:29

rested to be Coptic Orthodox Christians

05:32

which makes them by far Egypt's largest

05:34

religious minority group and with a

05:36

population of around 11 million in Egypt

05:38

they're also by far the largest

05:40

Christian Community in the Middle East

05:42

as well further west to these new

05:44

religious buildings in the government

05:45

district is going to be the new Capitol

05:47

Central business district with some

05:49

highly ambitious projects of its own

05:51

among them is the already completed

05:53

iconic Tower which was built with the

05:55

help of the China State construction

05:56

Engineering Corporation with a total of

05:58

79 floors coming out to

06:00

1,293 Ft or 394 m in height the iconic

06:05

Tower is already the tallest building in

06:07

Africa with an exterior shell designed

06:09

to resemble the crown worn by the

06:10

ancient Egyptian godam moon as depicted

06:13

in Egyptian hieroglyphics but apparently

06:15

not satisfied with merely having the

06:17

tallest building in Africa the new

06:19

capitals planners are evidently still

06:21

plotting to construct the tallest

06:23

building in the entire world within the

06:25

new Central business district as well

06:27

that'll be called the oblisco copy

06:30

taking its design inspiration from an

06:31

ancient Obelisk of fonic Egypt this Mega

06:34

tall skyscraper is currently planned to

06:36

have a total of 165 floors and a total

06:40

architectural height of 1,000 M or an

06:43

entire kilometer construction on the

06:45

building is currently expected to begin

06:47

sometime this year in 2024 and if

06:50

completed by its Target finishing date

06:51

of 2030 it will seize the title of the

06:54

tallest structure in the world from the

06:56

current record holder the bur Khalifa in

06:58

Dubai which would only stand 170 m

07:01

shorter than the oblisco copy Tall might

07:04

but the cost of this massive building

07:06

will carry with it an equally massive

07:08

price tag currently estimated to be at

07:10

least another $3.2 billion and even that

07:14

is probably a big underestimation and

07:17

since Egypt is already beginning to

07:18

encounter some pretty serious financial

07:20

difficulties it remains to be seen

07:23

whether or not this part of the project

07:24

will actually end up getting built or

07:26

not then there's also the brand new

07:28

Olympic City complex with than the new

07:29

capital which is being specifically

07:31

built to enable Egypt to be competitive

07:33

when they submit bids to host major

07:34

worldwide sporting events in the future

07:36

like the Olympics and the FIFA World Cup

07:38

more than 22 separate sporting

07:40

facilities are being constructed within

07:41

the complex including a major Neo

07:43

association football stadium that will

07:45

have a seating capacity for 94,000

07:48

people which will make it the second

07:49

largest football stadium in Africa and

07:51

the eighth largest one worldwide and

07:54

then in Phase one's southwest corner is

07:56

rising the single largest district and

07:58

building in the entire New Capital the

08:00

new headquarters for the Egyptian

08:02

Ministry of Defense known as the Octagon

08:04

considered far too important and large

08:07

to be mirely contained within the

08:08

regular government District of the new

08:10

capital that houses all of the 34 other

08:12

Egyptian government Ministries the

08:14

ministry of defense's new headquarters

08:15

here will consist of 10 new buildings in

08:18

an octagonal shape that will Sproul

08:20

across an area of more than 22,000 Acres

08:24

which is larger than the independent

08:25

nation of San Marino that's owned to

08:28

34,000 people the Octagon floor space

08:31

across these 10 buildings will include

08:32

approximately 505 million square ft of

08:35

area under roof which will make it by

08:38

far the biggest office building at

08:40

defense headquarters of any military in

08:42

the entire world coming in with nearly

08:44

eight times as much floor space as the

08:46

Pentagon near Washington DC that serves

08:48

as the headquarters for the US

08:50

Department of Defense this is despite

08:52

the fact that 1 of Egypt's defense

08:54

budget is provided as a grant by the

08:56

United States and even with that Grant

08:59

the Egyptian defense budget is currently

09:00

only the 35th largest in the world and

09:03

is lower than that of Belgium which

09:05

isn't exactly well known for being a

09:07

military Powerhouse deserving of the

09:08

largest military defense complex in the

09:11

world at any rate connecting all of

09:13

these districts together will be the

09:14

Green River Park flowing through the new

09:16

capital Center designed to symbolize the

09:18

flow of the Nile River itself through

09:20

Egypt in its first phase undergoing its

09:22

finishing touches right now the park

09:24

will be 6 M or about 10 km long which

09:28

will make it double the size of Central

09:30

Park in New York City and when it's

09:31

extended out to its fully intended size

09:33

in the future phases it's expected to

09:35

reach an almost comical length of 22 M

09:39

or 35 km which will make it roughly six

09:42

times larger than New York Central Park

09:44

by then eight fully residential

09:46

districts are also planned to be

09:48

constructed along the park perimeter

09:49

interspersed between wide Avenues and

09:51

highways that connect to the government

09:53

business religious and sports districts

09:55

with other smaller districts I didn't

09:57

even cover like an entirely separate

09:59

sports city a knowledge city intended to

10:01

be the site of foreign universities an

10:02

arts and culture City a banking District

10:04

a Medical Campus an expo City for

10:07

hosting major conventions and a brand

10:08

new big International Airport with all

10:11

of that being crammed together in here

10:13

it's fairly easy to see how it's gotten

10:15

to the point where the Egyptians have

10:16

already blown through more than $58

10:18

billion building this thing and it's all

10:21

coming at a time when Egypt's government

10:22

debt has soore to alltime highs

10:25

inflation is soore to all-time highs the

10:27

Egyptian currency is crashed to all-time

10:29

lows and the country is facing its worst

10:32

economic crisis in decades tens of

10:34

billions of dollars are being blown on

10:36

this extravagant New Capital City while

10:39

onethird of the Egyptian population

10:41

continues to live in poverty and the

10:42

people are dealing with all-time high

10:44

inflation in an all-time low valued

10:47

currency and so perhaps understandably

10:50

there's a genuine concern among many

10:52

that this flashy New Capital arising in

10:54

the desert is contributing to the

10:56

bankruptcy of the entire country and few

10:58

believe that Egypt can actually afford

11:01

this scale of extravagance in the desert

11:03

and so that then begs the question why

11:06

is the Egyptian government apparently so

11:08

willing to bankrupt itself to build this

11:10

massive new capital city in the first

11:13

place officially the Egyptian government

11:15

has stated that this new administrative

11:17

Capital project is primarily necessary

11:19

to relieve congestion and reduce

11:21

overpopulation in Cairo itself which is

11:23

a very big and crippling issue that the

11:25

country is actually struggling to

11:27

address Egypt's true shape isn't really

11:30

what you see it as on maps because most

11:32

of the country is dominated by the

11:34

inhospitable Sahara Desert where

11:36

Agriculture and life are each

11:37

practically impossible where it not for

11:39

the seemingly endless supplies of water

11:41

in the N River that carves across this

11:43

Barren landscape and fans out in the

11:45

north across a Delta region that empties

11:47

out into the Mediterranean Egypt would

11:49

likely be as sparsely populated and

11:51

Barren as neighboring Libya which only

11:53

has a population of fewer than 7 million

11:55

people but Egypt does have the Nile and

11:58

the Nile has brought Egypt life for

12:00

thousands of years it carves out what is

12:03

the largest Oasis in the entire world

12:06

and even today provides an overwhelming

12:08

97% of Egypt's entire supply of freshwat

12:11

the Nile Valley and the Nile Delta

12:13

regions of Egypt are therefore the true

12:15

cores of the country and everything else

12:17

around it to the west and to the East

12:18

are basically empty deserts that are

12:20

largely only useful for serving as

12:22

protective buffer zones of the core and

12:24

while the Nile River is very long it is

12:26

also very narrow which makes the valley

12:28

in the delta regions combined only about

12:30

the same area as Slovakia and Europe but

12:34

95% of Egypt's entire contemporary

12:36

population lives within either the small

12:38

Valley or the small Delta regions and

12:41

with a total estimated population in

12:42

2024 of 107 million people that's about

12:46

102 million Egyptians who are all

12:49

crammed up into a space that's only

12:51

about the same size as Slovakia which is

12:53

roughly equivalent to the combined

12:55

populations of all of Spain and Italy

12:57

this makes Egypt's core area within the

12:59

Nile Valley and Delta among the most

13:01

densely populated and overcrowded places

13:03

in the entire world with an average

13:05

population density across the region of

13:07

at least 2,000 people per square

13:09

kilometer this is Egypt's true shape and

13:12

so if Egypt's population density was

13:14

more accurately measured as being just

13:16

the density within the Nile Valley and

13:18

Delta it would be ranked as the third

13:19

most densely populated country in the

13:21

world remaining only behind the tiny

13:23

city states of Monaco and Singapore and

13:26

Egypt's population has been growing

13:27

rapidly for decades now now 74 years ago

13:30

now back in 1950 the entire Egyptian

13:33

population Nationwide was only a little

13:35

more than 21 million people and within a

13:38

single lifetime since then the country's

13:40

population has exploded more than five

13:43

times over again to the current

13:45

estimated population of around 107

13:47

million the largest population in the

13:49

Middle East and it's only expected to

13:51

continue growing even further from here

13:53

for several more decades to come as of

13:56

2023 the fertility rate in Egypt has

13:58

remained well above the world average

14:00

and continues to sit at around 2.8

14:03

children per woman and though it has

14:05

been decreasing with time Egypt's

14:07

population is still projected to climb

14:09

up to 160 million people by the middle

14:12

of the century in 2050 which will only

14:14

add further population strains on an

14:16

already very overcrowded country for an

14:19

American perspective Egypt's projected

14:21

population density in the Nile Valley

14:23

and Delta by 2050 would be almost like

14:25

cramming the entire combined populations

14:27

of California Texas Florida New York

14:29

York Pennsylvania Illinois and Ohio all

14:31

simply into the state of West Virginia

14:34

Cairo alone the current capital and

14:36

largest city has swelled almost to the

14:38

Breaking Point with people having more

14:40

than nine times its population since

14:42

1950 to the point where today the city's

14:44

Metropolitan region is home to more than

14:46

22.6 million people more people than

14:49

were even alive across all of Egypt back

14:51

in 1950 and which makes Cairo the most

14:54

populous Metropolis in Africa and the

14:55

fifth most populous Metropolis Worldwide

14:58

having just recent recently surpassed

14:59

Mexico City to clinge the number five

15:02

spot and it will climb up several more

15:04

spots further in the near future at the

15:06

current projected levels of growth in

15:07

Cairo if nothing is done about it the

15:10

city's Metropolitan region is expected

15:11

to soar up to around 38 million people

15:15

by 2050 about the same population as

15:17

Tokyo has today by then Cairo will

15:20

likely be the second largest

15:21

metropolitan area in the world remaining

15:23

only behind the un's projections for

15:25

Mumbai in India which is likely to by

15:27

then become the number one largest City

15:29

Cairo has ever since become almost

15:31

synonymous with brutal traffic and

15:33

congestion to the point where Cairo

15:35

sometimes hardly even functions the

15:37

government's Ministries were built

15:39

spread out across the city back when it

15:41

was much much smaller and less congested

15:43

decades or even centuries ago and around

15:45

cairo's Central taher Square are many of

15:47

the government's most important

15:49

buildings such as the parliament the

15:51

ministry of the Interior the ministerial

15:53

cabinet the United States Embassy the

15:55

Supreme Court and the Ministry of

15:56

Foreign Affairs since security arounded

15:59

between all of these buildings is often

16:00

necessary and streets are often cordoned

16:02

off it's sometimes literally impossible

16:04

to travel between two separate points in

16:06

the city which makes government

16:08

operations and economic activity both

16:10

monstrously inefficient but the problem

16:13

is that Egypt doesn't really have very

16:15

much available space to build new

16:17

housing to pull the population away from

16:19

Cairo they have precious little

16:21

available Farmland to the north of Cairo

16:23

in the Nile Delta or further south

16:24

through the Nile Valley which eliminates

16:26

large scale Urban expansion into either

16:28

of those directions that leaves the

16:30

other unattractive choice of expanding

16:32

to the east or the west of Cairo into

16:34

the Sahara desert but since it's a less

16:36

terrible option than expanding north or

16:38

south and destroying preciously limited

16:40

agricultural land that's what the

16:42

Egyptians have tried doing for decades

16:44

the outskirts around Cairo are littered

16:46

with the attempts of previous

16:48

presidential administrations in Egypt to

16:50

build new cities to pull population away

16:52

from Cairo like the 6th of October City

16:54

to the West the 10th of Ramadan City to

16:56

the Northeast alabor City and the

16:58

biggest project before the recent New

17:00

Capital Project New Cairo City

17:03

established in 2000 that's today home to

17:05

1 and A2 million people but hardly any

17:07

public transportation was built linking

17:09

any of these new satellite cities in the

17:11

desert back to Cairo While most of the

17:13

housing Supply in them was dedicated

17:14

only to higher end housing so the only

17:17

Egyptians who could relocate themselves

17:18

out of Cairo into them were higher

17:20

income citizens who own cars which

17:23

aren't very many people which is why all

17:25

of these satellite Desert Cities are

17:26

only partially inhabited and have

17:28

considered fewer residents living in

17:30

them than they were originally designed

17:31

for but Egypt's current president Abdel

17:34

fatal CeCe has been repeatedly vocal

17:37

about his belief that Egypt's

17:38

overpopulation problem is the biggest

17:40

crisis the country is currently facing

17:42

in 2017 his government rolled out the

17:44

two is enough campaign in Cairo

17:46

encouraging Egyptian families to limit

17:48

themselves to only having two children

17:50

Eli has also praised China's Infamous

17:53

one child policy during speeches in the

17:55

past and he has tasked his own

17:57

government to reduce the nation wide

17:59

fertility rate down from the current

18:00

2.85 to just 2.11 by the early 2030s and

18:05

in addition to reducing the country's

18:06

fertility rate occe has also become the

18:09

latest in a long running line of

18:11

Egyptian presidents to try his hand at

18:13

building a new city Beyond Cairo to

18:15

relieve the city of some of its dense

18:17

population and congestion which is why

18:19

LC's government hopes that the new

18:21

administrative Capital project that

18:23

they're building out in the desert will

18:24

eventually be home to 62 million people

18:28

but relieving gestion and overpopulation

18:30

in Cairo is really just the publicly

18:32

stated reason for the whole big project

18:34

the other more quiet and less official

18:37

reason is to reduce the odds of Eli and

18:39

his authoritarian military regime from

18:41

getting overthrown during a revolution

18:43

or a couet while simultaneously

18:45

enriching himself and his supporters

18:47

along the way back in the early 2010s

18:50

Egypt was a pretty unstable Place

18:52

politically the country had been ruled

18:53

for nearly 30 years by a single longtime

18:56

strongman leader named hosy Mubarak who

18:58

had by 2011 for a variety of reasons

19:01

fallen out of favor with most of his

19:02

people protests against his continued

19:04

leadership gathered in Cairo Central tah

19:06

Square nearby to many of the Egyptian

19:08

government's most important offices and

19:10

the protest steadily evolved into a

19:12

full-blown Revolution that forced

19:14

mubaric from Power the Egyptian Armed

19:16

Forces then stepped in to temporarily

19:18

assume power in the country until a

19:20

democratic election could be hosted that

19:22

came the following Year in 2012 which

19:24

saw the Egyptian people democratically

19:26

elect an islamist to power from the

19:27

Muslim Brotherhood party known as

19:29

Muhammad morsey morsey then went on to

19:32

attempt and create a new islamist

19:33

leaning constitution in Egypt which

19:35

sparked further outrage in the country

19:37

and led to renewed Mass protests

19:39

erupting again just the following year

19:41

in 2013 that were finally taken

19:43

advantage of by Mor's then Minister of

19:45

Defense General Abdel fat CI Eli

19:49

initiated a military couet TI against

19:51

Mory and forcibly over through him from

19:53

power and then when fresh new elections

19:55

were hosted in 2014 they were boycotted

19:57

by all of the country opposition parties

20:00

occe emerged as Egypt's new president

20:03

part of what had made it so possible for

20:05

protesters and revolutionaries to

20:06

overthrow the Egyptian government twice

20:08

in 2011 and again in 2013 was their

20:11

ability to mass literally millions of

20:13

people into Cairo Central taher Square

20:16

that overwhelmed the narrow streets with

20:18

blockades that eliminated the

20:19

government's ability to access or even

20:20

defend its important offices nearby

20:23

which forced the government into

20:24

conceding to their demands it was how El

20:26

CC Rose to power in Egypt in the first

20:29

place and learning from the mistakes of

20:31

his predecessors it wasn't a coincidence

20:33

that within a year of him securing power

20:34

with the presidency in 2014 Eli

20:37

announced the plans for the brand new

20:39

capital city in 2015 by the time it's

20:41

eventually finished there will hardly be

20:43

any government power remaining within

20:45

Cairo at all all of the government's

20:47

Ministries the Parliament and LCC

20:49

himself will have all relocated

20:50

themselves 23 miles or 45 km east of

20:54

Cairo putting all of that distance

20:56

between themselves and the tens of

20:58

Millions ions of everyday Egyptians left

21:00

behind in order to replicate the

21:02

successful Revolutions of 2011 and 2013

21:05

millions of Egyptians would have to

21:06

travel out of their way from Cairo to

21:08

the new capital and since only around a

21:11

quarter of cairo's population even owns

21:13

a car that means that most of them are

21:15

going to have to travel by foot which

21:17

will take about 13 hours to walk across

21:19

the Sahara desert with likely multiple

21:22

military checkpoints placed all along

21:24

the way and then to complicate any

21:26

potential rebellion's odds of success in

21:28

the new cap Capital even further the new

21:30

capital is being designed in a way to

21:31

make any protest there as difficult as

21:34

possible all of the roads and avenues

21:36

are designed to be as wide as possible

21:37

to make barricading them as challenging

21:39

as possible a design that replicates

21:41

many other Capital Cities from around

21:43

the world more than 6,000 security

21:45

cameras are intended to be installed

21:47

within the new capital city that is

21:48

directly inspired from Chinese

21:50

government surveillance systems complete

21:52

with a similar Chinese fashioned Central

21:54

Command surveillance system that will

21:56

track everything going on in the capital

21:58

all times through the thousands of

22:00

cameras live broadcasts the city will

22:02

include hardly any public transportation

22:05

which will make moving the masses around

22:06

it challenging while the presence of the

22:08

military's massive new headquarters so

22:10

nearby at the Octagon complex will allow

22:13

the entire might of the Egyptian

22:15

Military to rapidly deploy a Crackdown

22:17

against any potential threats once

22:20

completed the new capital will firmly

22:22

separate the Egyptian government and

22:24

head of state from the Egyptian people

22:26

like a 21st century version of ver son

22:28

die more than 340 years ago French King

22:31

Louis the 14th made a similar policy

22:34

decision when he relocated his entire

22:36

court in seat of government away from

22:38

Paris towards his new exorbitant Palace

22:40

at Versa about 12 Mi or 19 km away from

22:44

the center of Paris for the next Century

22:46

after the move was made Versailles acted

22:48

as the deao capital of France over Paris

22:51

isolating the French monarchy and

22:53

government from the people they ruled

22:54

over in Paris and separating their

22:56

problems from the King but in the end

22:58

the French government's move to

22:59

Versailles made little difference as in

23:01

1789 more than a century after the move

23:03

was made the French Revolution exploded

23:06

and forced the monarchy and the

23:07

government back to Paris at gunpoint

23:09

where it has remained at ever since and

23:12

like Versa did for the French nobility

23:14

in separating the government from the

23:16

people the brand new Egyptian Capital

23:18

being built today is directly enriching

23:20

the government of Eli and his military

23:22

supporters as well in the beginning when

23:24

the new capital city was announced back

23:26

in 2015 L's government prompt that not 1

23:29

cent of Egyptian State funds would be

23:31

contributed to the new capital's

23:32

construction investors from the United

23:34

Arab Emirates were originally planned to

23:36

finance the entire project but that

23:38

original plan ended up falling through

23:40

when Chinese investors largely backed

23:42

out of the new capital project as well

23:44

L's government was forced to finance the

23:47

construction of everything through

23:48

Egypt's public resources by taking on

23:51

loans increasing the government's debt

23:53

selling state-owned land or by directly

23:56

allocating parts of the government

23:57

budget to the construction itself and

24:00

after the UAE investors fell through on

24:02

the new capital the Egyptian government

24:03

simply set up a brand new company to

24:05

oversee the capital's construction going

24:07

forward that they've called the

24:08

administrative capital for Urban

24:10

Development or acud which is

24:13

interestingly owned 51% by the Egyptian

24:16

Military and only 49% owned by the

24:19

Egyptian housing Ministry this company

24:21

is the one whoes most of the government

24:23

contracts to carry out the grandio

24:25

construction projects going on within

24:27

the capital and their financials are

24:29

completely non-transparent and not

24:31

subjected to public auditing or

24:32

independent oversight which is very

24:34

convenient high ranking members of the

24:37

Egyptian Military are significant

24:38

shareholders suppliers or supervisors

24:41

for the construction work going on and

24:42

they're likely all profiting to the tune

24:44

of billions of dollars off of the work

24:47

and since most of the money for the

24:49

capital has come from Egypt's public

24:50

resources this entire new capital city

24:53

project has essentially been a massive

24:55

wealth transfer from the Egyptian public

24:57

to the Egyptian generals and to LCC

25:01

himself and as the whole project has

25:03

become a bottomless black hole for money

25:05

with more than 58 billion dumped into it

25:09

already Egypt has had to take on more

25:11

loans and more debt to pay for it all as

25:14

crisis after crisis since 2015 has

25:17

pounded the country's finances even

25:19

further after LCC in the military

25:21

overthrew morsy in the Muslim

25:22

Brotherhood in 2013 an islamist

25:24

Insurgency in opposition to the new

25:26

military regime has been raised Aging in

25:28

the vast rugged sparsely populated and

25:31

difficult to control Cai Peninsula the

25:33

Egyptian Army has lost more than 3,200

25:36

soldiers fighting against this

25:38

Insurgency in the Sinai since it began

25:40

which is more than how many US troops

25:42

were lost across 20 years of

25:44

counterinsurgency operations in

25:45

Afghanistan the Sinai Insurgency has

25:48

represented the most major internal

25:50

security crisis for the Egyptian state

25:51

to deal with while multiple external

25:54

crises have made Egypt's economic

25:56

situation even worse there was the

25:58

covid-19 pandemic that began in 2020

26:00

that rocked every country in the world

26:03

and then Russia's invasion of Ukraine in

26:05

2022 impacted Egypt especially hard

26:08

because of their exports of wheat to the

26:09

country without enough aable land along

26:11

the narrow banks of the Nile to provide

26:13

for its own buring population growth

26:15

Egypt has been forced to import the

26:17

majority of its wheat supplies from

26:19

abroad which has made the country the

26:21

largest wheat importer in the entire

26:23

world roughly 55% of the country's wheat

26:26

Supply was imported from abroad and in

26:28

2022 immediately before the war in

26:30

Ukraine began about 60% of Egypt's

26:32

imported wheat was coming from Russia

26:34

and another 22% of it was coming from

26:36

Ukraine the outbreak of war in Ukraine

26:38

and in the Black Sea sent Global wheat

26:40

prices skyrocketing and hampered Egypt's

26:43

access to its usual sources of imports

26:45

which rocked the country's economy even

26:48

further then in early 2023 a

26:50

catastrophic Civil War exploded

26:53

immediately to the south of Egypt and

26:54

Sudan which is sent hundreds of

26:56

thousands of refugees fleeing northward

26:58

into Egypt and then in October of 2023

27:02

another massive war exploded on Egypt's

27:04

borders in Gaza between Israel and Hamas

27:07

which dealt an even further double shock

27:09

to the Egyptian economy tourism to the

27:11

country which usually contributes

27:12

roughly 8% of the country's GDP and

27:15

which provided roughly $4 billion worth

27:17

of revenues for Egypt in 2023 completely

27:20

crashed in the wake of the massive war

27:22

breaking out directly next door in Gaza

27:25

while at the same time the wars after

27:27

shocks have devast stated another major

27:29

Revenue source for Cairo as well the

27:31

Suez Canal the canal is generally

27:33

understood to probably be the greatest

27:35

single asset that Egypt possesses since

27:38

in a given year roughly 12% of all

27:40

Global Seaborn trade will pass through

27:42

it and the Egyptian government profits

27:44

off of it by charging tolls and fees on

27:46

all of that trade to use the canal in

27:48

the fiscal year from Summer 2022 to

27:50

Summer 2023 the Suez Canal returned an

27:53

all-time high Revenue stream to the

27:55

Egyptian government of 9.4 billion

27:58

but since then the houthis an Iranian

28:01

backed faction in Yemen who controls

28:03

most of the country's major population

28:04

centers declared that they would begin

28:06

attacking Israeli American and British

28:09

Merchant shipping nearby them in the Red

28:10

Sea in support of their Ally Hamas and

28:13

Gaza those attacks have ended up being

28:15

fairly indiscriminate on Merchant

28:16

shipping from just about everywhere and

28:18

it's caused a massive crash in merchant

28:20

shipping traveling through the Red Sea

28:22

in the Suz Canal which is

28:23

correspondingly caused the revenue

28:25

coming to Egypt from the tolls on the

28:26

Suz Canal to crash by roughly half as a

28:30

result of all of these crises piling up

28:32

on top of each other for Egypt recently

28:33

and due to the government's continued

28:35

drive forward with plowing tens of

28:37

billions of dollars into the new capital

28:39

anyway despite them Egypt's financial

28:42

situation has deteriorated to its most

28:44

dire scene in decades since LCC formerly

28:47

became Egypt's President a decade ago

28:49

back in 2014 Egypt's external debt

28:52

levels have quadrupled to more than

28:54

$164 billion while the entire government

28:58

debt including internal debt has soared

29:00

to nearly $370 billion which is roughly

29:03

93% of the country's total GDP and again

29:07

44% of Egypt's total national debt is

29:10

Zed externally by comparison the United

29:12

States national debt is currently at

29:15

123% of its GDP a larger percentage than

29:18

Egypts but only 24% of America's

29:21

national debt is owed externally a much

29:23

lower percentage than Egypts many of

29:26

these external loans to Egypt have come

29:27

from the international monetary fund or

29:29

IMF which Egypt now owes approximately

29:32

$18 billion to as of 2023 which

29:35

currently makes Egypt the second largest

29:38

IMF debtor in the World Behind only

29:40

Argentina in order to secure many of

29:42

these loans over the past several years

29:44

the Egyptian government was required to

29:46

devalue its currency many many times

29:49

five rounds of the Egyptian currency

29:51

being devalued later since 2016 but the

29:53

latest devaluation taky plays just a few

29:55

days before I released this video the

29:57

Egyptian pound the country's currency

30:00

has lost about 90% of its value compared

30:03

to the US dollar since occe took office

30:05

as the country's president with1 us now

30:08

trading on the market for around 50

30:10

Egyptian pounds when it used to be $1 us

30:13

for five Egyptian pounds back in

30:15

2016 correspondingly these frequent and

30:18

sharp devaluations in Egypt's currency

30:20

combined with unexpected price shocks to

30:22

Egypt's imported resources like wheat

30:23

and oil due to the war in Ukraine have

30:26

led to skyrocketing inflation in the

30:28

country which has peaked at an annual

30:29

rate of 36% which are the highest levels

30:32

of inflation that Egypt has ever seen in

30:34

its modern history the cratering value

30:37

of the Egyptian currency and the

30:38

country's exploding debt has also meant

30:40

that as of 2024 the country is spending

30:43

around 60% of its entire government

30:45

budget simply servicing all of its debt

30:48

obligations all while construction on

30:50

the glittery new capital is continued on

30:52

with very little cuts from the original

30:54

plan being made the plans for affordable

30:56

housing in the new capital appear to

30:58

have been cut while construction on the

31:00

mon rail line that was intended to link

31:02

downtown Cairo with the new capital also

31:04

appears to have been halted as well

31:06

which are all maybe features rather than

31:08

bugs designed to further separate the

31:10

wealthy Egyptians connected to the

31:12

government in the new capital from the

31:13

poor everyday Egyptians left behind in

31:15

Cairo and as recently as December of

31:17

last year in 2023 Bloomberg economists

31:20

had ranked Egypt as the second most

31:22

likely country in the world to default

31:24

on its deaths remaining only just barely

31:26

behind the odds of War torn Ukraine

31:28

defaulting on its own debts and there's

31:31

few ways for Egypt's current regime to

31:33

really get itself out of this mess the

31:35

IMF has demanded that 's military

31:37

dominated government begin loosening its

31:39

own control over the economy to enable

31:41

an environment for private businesses to

31:43

thrive the Egyptian Military dominates

31:46

pretty much every facet of the economy

31:48

in the country from construction to

31:49

tourism to even food production and

31:51

pharmaceutical the Egyptian Military

31:53

owns and operates most of the major

31:55

businesses in the country's economy

31:57

themselves the Egyptian Military has

31:59

often been referred to as being a state

32:01

within a state inside of Egypt and so if

32:03

the former General turned president El

32:05

CE he was to turn on them by privatizing

32:08

many of their business interests they

32:10

would probably just turn on him and

32:11

overthrow him and replace him with

32:13

somebody else which means that he's

32:15

largely powerless to actually adopt most

32:17

of the economic reforms in Egypt that

32:19

organizations like the IMF have demanded

32:21

which means he's more likely to keep

32:23

being dependent on continuing the

32:24

country's economic Doom cycle by

32:26

borrowing more money from abroad and

32:28

increasing the debt to pay for servicing

32:31

the previous debt which will continue to

32:33

run the currency into the ground and

32:35

increase the country's inflation rate

32:37

which pisses off the Egyptian public

32:38

against him even more which increases

32:40

his own personal need to have a brand

32:42

new capital separate from the people who

32:44

could overthrow him even further which

32:46

increases his needs to keep pouring

32:48

money into finishing the new capital

32:50

project which increases his needs for

32:52

acquiring more loans and starting the

32:54

Doom cycle all over again it is all by

32:57

far far the worst economic crisis that

33:00

Egypt has ever faced in its modern

33:01

history and people have been predicting

33:03

Egypt's imminent collapse beneath all of

33:05

these pressures for years now but far

33:08

from collapsing more money from abroad

33:10

has just continued gushing into Egypt to

33:12

keep the country alive and functioning

33:14

anyway despite all of its troubles

33:16

because to many people on the outside

33:18

Egypt is simply too big of a country to

33:20

ever allow it to collapse especially

33:23

right now well economically Egypt is

33:25

only a fairly minor power in the middle

33:27

East with a much smaller GDP than turkey

33:29

Saudi Arabia the United Arab Emirates

33:32

and Israel the country has by far the

33:34

Region's largest human population and a

33:37

governmental collapse with that many

33:39

people in this region could cause untold

33:41

amounts of chaos the gulf Arab states

33:43

led by Saudi Arabia with the UAE Bahrain

33:46

and Kuwait tagging along have also all

33:48

been heavily geopolitically incentivized

33:50

to keep a stable government around in

33:52

Egypt who they can actually get along

33:54

with the European Union Market

33:56

represents a major export destination

33:58

for tens of billions of dollars of oil

34:00

and gas a year from around the Persian

34:02

Gulf and the quickest and most

34:04

economical route for all of that oil and

34:06

gas to take to Europe is through the Suz

34:07

Canal across Egypt without the Suz Canal

34:10

the Persian Gulf States would stand to

34:12

lose untold amounts of money by sending

34:15

their oil and gas exports to Europe the

34:17

long way around the entirety of Africa

34:19

so a compliant and stable government

34:21

within Egypt that continues letting them

34:23

use the canal for cheap is imperative to

34:25

them this is a big reason why Saudi

34:28

Arabia the UAE and Kuwait all became

34:30

highly concerned with the Egypt's

34:32

government in 2012 when the islamist

34:34

Muhammad morsy and his Muslim

34:36

Brotherhood came to power in the country

34:38

after the chaos of the 2011 Revolution

34:41

like most political islamist movements

34:43

the Muslim Brotherhood advocates for the

34:44

supremacy of the Islamic faith and

34:46

government over what they view as

34:48

secular man-made monarchies like the

34:50

Saudis which is why the Saudis the

34:52

Emirates Kuwait and Bahrain all

34:54

interpret the Brotherhood as a major

34:56

direct threat to their own monarchical

34:57

Rule and which is why most of them have

34:59

even gone so far as to formally

35:01

designate the Brotherhood as a terrorist

35:03

organization you see there's a sort of

35:05

cold war going on across the Middle East

35:07

between the monarchist gulf Arab powers

35:09

on one side led by the Saudis and amadis

35:12

who are opposed to political islamist

35:13

movements like the Brotherhood and on

35:15

the other side are the countries who

35:16

more openly back political islamist

35:18

movements in the region led by The Duo

35:20

of turkey and Qatar so when the

35:22

Brotherhood came to power in Egypt in

35:24

2012 turkey and Qatar were each

35:26

delighted while the Saudis and amadis

35:29

were terrified not wishing to see Egypt

35:31

fall into the camp of their political

35:32

islamist Rivals the Saudis Emirates and

35:35

kuwes all backed abdelati cce's military

35:38

coup that overthrew the Brotherhood

35:39

government in Egypt in 2013 and Egypt's

35:42

military dominated government has firmly

35:45

remained within their anti-islamist

35:46

dominated faction ever since in order to

35:49

then keep the country's stability going

35:51

in the midst of its huge recent economic

35:53

problems the gulf Arab State sunk more

35:56

than $34 billion

36:57

in the Red Sea region and increased

36:59

influence over both Israel and Jordan as

37:02

well and the Saudis haven't even been

37:04

the only ones buying up strategically

37:06

valuable land in Egypt to fund the

37:08

country's government and keep it from

37:10

collapsing in March of 2024 just as I

37:13

was making this video the United Arab

37:15

Emirates confirmed that they would be

37:16

investing a truly massive $35 billion

37:20

into Egypt for the exclusive rights to

37:22

develop multiple new projects in the

37:24

country including $24 billion for the

37:27

Emirates exclusive rights to develop the

37:29

rossel hecma area on a cape on the

37:31

Egyptian Mediterranean Shoreline around

37:33

200 km west of Egypt's second largest

37:35

city Alexandria the Emirates now plan to

37:38

transform this area into a massive new

37:41

seaside resort town on the Mediterranean

37:43

that they hope they'll eventually be

37:44

able to profit from while the injection

37:46

of so much Emirate cash into the

37:49

desperate Egyptian economy likely

37:51

averted the country from defaulting this

37:53

year and facing a catastrophic new

37:55

crisis it represents the single largest

37:58

foreign investment ever put into Egypt

37:59

in its entire history and it represents

38:02

more money than the Gulf States

38:03

collectively poured into Egypt for a

38:05

decade between 2013 and

38:08

2022 which is perhaps a sign of how dire

38:11

the economic situation had truly become

38:13

in Egypt and the amirati cash for

38:16

Egyptian assets like Ras Al hecma hasn't

38:18

even been the only money the country has

38:20

received recently Egypt stability is

38:22

important to the European Union too

38:24

because the country is one of the

38:26

primary Avenues of Refugee and migrant

38:28

flows into Southern European countries

38:30

like Greece and so rather than see the

38:32

country's economy collapse and the

38:34

unpredictability that would follow from

38:36

that the EU has recently been floating

38:38

the idea around of an 8 billion Aid

38:40

package to Egypt as well and Egypt and

38:43

its stability is also very very very

38:45

important to the United States as well

38:47

Egypt was after all the very first Arab

38:50

country to ever make peace with Israel

38:52

and recognized the Jewish State back in

38:54

1979 ever since then Washington is s a

38:57

trans form Egypt's early recognition of

38:59

Israel's existence into an example for

39:01

the rest of the Arab world to follow by

39:03

basically rewarding Egypt as much as

39:05

possible for having done it Egypt

39:07

alongside Israel each became officially

39:09

classified by Washington as major

39:11

non-nato allies in 1989 and each have

39:14

become the pillars of Washington's

39:16

military strategy and footprint in the

39:18

Middle East region ever since since

39:20

making peace with Israel in 1979 Egypt

39:23

has been the second largest recipient of

39:24

United States foreign aid in the world

39:27

only after Israel itself and a whopping

39:30

$ 51 billion of that American foreign

39:32

aid to Egypt has been military aid since

39:35

1985 All American military aid to Egypt

39:38

has been considered grants that have

39:39

never been needed to be paid back and

39:41

Washington is usually maintained a grant

39:43

of about $1.3 billion in military aid to

39:46

Egypt on an annual basis ever since

39:49

Egypt's willingness to cooperate with

39:50

Israel and its possession of the Suez

39:52

Canal both make it a highly important

39:55

partner to Washington because the canal

39:56

enables a American warships including

39:59

aircraft carriers to rapidly redeploy

40:01

between the Mediterranean theater and

40:03

the Indo Pacific which enables American

40:05

warships to quickly move between threats

40:07

posed by States like Russia Syria or

40:09

Libya in the Mediterranean and threats

40:11

posed by States like Iran and their

40:13

proxies like the houthis in the Indo

40:15

Pacific moreover the sus Canal also

40:17

provides the quickest possible trade

40:19

route for Persian Gulf oil and gas to

40:21

reach America's NATO allies in Europe

40:23

which has become even more important

40:25

since the Russian invasion of Ukraine

40:27

began and European NATO allies increased

40:29

Reliance on Persian Gulf oil and gas and

40:31

replacement of Russian oil and gas and

40:34

Egypt's stability became even more

40:36

important to Washington after the

40:37

outbreak of war between Israel and Hamas

40:39

and Gaza after October 7th Egypt

40:42

controls the only border with Gaza that

40:44

isn't controlled by the Israelis and

40:45

with the war still raging there and with

40:48

other potential conflicts that could

40:49

break out in Lebanon and the Red Sea or

40:51

with Iran itself Washington does not

40:53

want Egypt to collapse into a revolution

40:56

again that could could end up adding

40:58

fuel to the already burning fire in the

41:00

region with an unpredictable new

41:02

government and so Washington 2o has been

41:05

incentivized to continue providing Egypt

41:07

with its generous foreign aid to

41:09

Washington along with the Israelis and

41:11

the gulf era monarchies L CC may be an

41:14

authoritarian leader who's burning tens

41:16

of billions of dollars building an

41:17

economically destructive brand new

41:20

capital city in the desert as his

41:22

country's economy collapses and as his

41:24

people grow poorer but he's also

41:26

predictable reliable and most of all

41:28

friendly to them in a region of the

41:29

world that is almost synonymous with

41:31

geopolitics violence and instability and

41:34

they can take advantage of Egypt's need

41:36

for cash by buying some of Egypt's

41:38

assets at Bargain Bin prices along the

41:40

way the area on the map that Egypt

41:42

occupies and its massive population

41:45

makes it simply too big for any of LC's

41:47

outside allies to ever allow it to fail

41:50

which enables LCC and the Egyptian

41:52

Military to continue borrowing enough

41:53

money from them or selling enough assets

41:55

to them to continue staying AF float but

41:58

it's all a delicate house of cards that

42:00

risks Egypt's outside backers eventually

42:02

losing patience are calculating that the

42:04

cost of supporting egyp stability are no

42:06

longer worth the high price that they're

42:08

paying Egypt's New Capital arising in

42:10

the desert is the symbol of this

42:12

International calculus that considers

42:14

the value of Egypt's geopolitical worth

42:17

stacked up against a seemingly

42:18

bottomless Money Pit so long as the

42:20

equation remains in Egypt's favor their

42:23

construction on the mega projects in the

42:24

new capital are likely to continue

42:26

moving forward word but if the calculus

42:28

ever shifts and Egypt's outside

42:30

supporters stop sending in more cash

42:32

then Egypt's new administrative Capital

42:34

may become tested by the Egyptian people

42:36

the same way that Versailles was tested

42:39

by the French people more than 235 years

42:42

ago now there's a lot of data that goes

42:45

into producing these kinds of videos

42:47

whether it's showing how tall Egypt's

42:49

proposed Mega tall skyscraper will stack

42:50

up against the Bish Khalifa how Egypt's

42:53

new military headquarters at the Octagon

42:54

compares to the sovereign country of San

42:56

Marino what Egypt's population density

42:58

pattern looks like or why Saudi Arabia

43:00

wanted to purchase these islands from

43:02

Egypt the ability to visualize raw data

43:04

like this on the map is exactly what

43:06

makes learning about these things so

43:08

fascinating to me and it's why the

43:10

exploring data visually course is one of

43:12

my favorite courses that I've ever taken

43:14

with this video sponsor brilliant.org

43:17

brilliant.org is a stem learning

43:19

platform that helps you learn by

43:20

actually doing they don't just give you

43:22

a mountain of text and expect you to

43:24

remember everything you read they use

43:26

Interactive exercises to teach you the

43:28

intuitive principles then build these

43:30

principles upon each other so that you

43:32

can genuinely understand complex

43:34

subjects like data visualization and

43:36

Analysis statistics computer science

43:38

astrophysics and tons of others they

43:41

really know how to teach for results

43:43

which is why brilliant.org is perfect

43:45

for the kind of person who wants to

43:47

learn because they love learning not

43:49

because they're being forced to and best

43:51

of all with her mobile app in smaller

43:53

bite-sized course chunks it's really

43:55

possible to fit learning on brilliant

43:57

.org into any schedule no matter how

43:59

busy your day-to-day activities are so

44:02

if you're the type of person who loves

44:03

learning new things you can try out

44:05

everything brilliant.org has to offer

44:07

for free for a full 30 Days by clicking

44:10

the button here on your screen right now

44:12

or by visiting brilliant.org reifel or

44:15

by clicking the link Down Below in the

44:17

description and best of all you'll also

44:19

get 20% off of an annual premium

44:22

subscription and as always thank you so

44:25

much for watching