Egypt’s New Capital: A Mirage in the Desert
Egypt’s new capital city, yet to be named, is a colossal project that reflects the nation’s aspirations and challenges. It is a project that aims to create a modern and sustainable urban environment for the future, led by President Abdel Fattah el-Sisi and Egypt’s military. The idea is to relocate the government and administrative functions from the overcrowded and polluted Cairo to a new location in the desert, about 45 kilometers east of the current capital. However, in a country that is facing economic difficulties, social inequalities, and human rights issues, this dazzling new venture also raises doubts and criticisms. The project’s cost, estimated at $58 billion, has been largely financed by public funds and foreign loans, while many Egyptians struggle with poverty and unemployment. The project’s design, which features a massive presidential palace, a huge defense complex, and thousands of surveillance cameras, has been seen by some as a symbol of authoritarianism and elitism. The project’s feasibility, which depends on the availability of water, electricity, and transportation, has also been questioned by experts and environmentalists.
The Promise of a New Capital
The new administrative capital, announced in 2015, is one of Egypt’s most ambitious megaprojects. It aims to address the challenges of Cairo, a historic city that is struggling with overpopulation, pollution, and traffic. The new city, located 45 kilometers east of Cairo, will span 700 square kilometers and house up to seven million people. It will host the main government institutions, foreign embassies, business and finance districts, and cultural and entertainment venues. The project is expected to cost $58 billion and take several years to complete. The government hopes that the new capital will not only ease the pressure on Cairo, but also attract investment, create jobs, and showcase Egypt’s modern vision.
The new capital, which is yet to be named, offers a range of benefits for Egypt’s economic and political prospects. It aims to attract foreign and domestic investors with incentives such as tax exemptions and reduced fees. It also plans to create millions of jobs for Egyptians in various sectors, such as construction, tourism, education, and health. Moreover, the new capital envisions a more orderly and sustainable urban environment that will reduce congestion, pollution, and overcrowding in Cairo. It also reflects Egypt’s ambition to enhance its regional influence and leadership. As a key mediator in conflicts such as the Gaza crisis and the Libya war, Egypt hopes to project a modern and stable image to the world. The new capital could also serve as a hub for regional cooperation and dialogue, especially with former rivals such as Qatar and Turkey.
The Mirage of Grandeur amid Crisis
The new capital project faces a daunting financial challenge: how to fund a $58 billion utopia when the country is mired in debt? Egypt’s public debt reached 90.5% of GDP in 2020, and its foreign debt rose 15% to $129.2 billion. The country is also struggling with high inflation, which reached 38% in September 2023, the highest in its history. Low income, poverty, and unemployment have worsened due to the COVID-19 pandemic, which has hit the tourism sector hard. External factors have also added pressure on the economy, such as the war in Ukraine, which has increased food and energy prices and disrupted trade flows. Egypt relies heavily on imports of wheat and sunflower oil from Russia and Ukraine, and is the world’s largest importer of wheat. The expansion of the Suez Canal, which was completed in 2015, has not brought the expected benefits to the economy, as global trade has slowed down and competition from alternative routes has increased. The canal’s revenues dropped by 3% in 2020 and by 11% in the first half of 2021.
The contrast is striking — a colossal project that reaches for the heavens while the majority of the population sinks in economic misery. Critics contend that the new capital is a vanity project for President el-Sisi and the military, who own most of the land and will profit from its development. It’s hailed as a city for the future but may end up being a city for the wealthy few, as many ordinary Egyptians will not be able to afford or access it. Moreover, some question the environmental and social costs of building a new city from scratch in the desert, while neglecting the historic and cultural heritage of Cairo.
Geopolitical Gains, Ethical Quandaries
Egypt’s role on the global stage adds another layer to this complex tapestry. As a mediator in regional conflicts, such as the Israeli-Palestinian dispute and the Libyan civil war, and a strategic ally to countries like the United States, Egypt has some geopolitical leverage. However, this often comes at a cost — namely, a blind eye being turned to Egypt’s less-than-stellar human rights record by its allies. According to Human Rights Watch, Egypt has been subject to rare international criticism at the United Nations Human Rights Council for its widespread violations, including enforced disappearances, torture, arbitrary arrests, and executions. Despite this, Egypt continues to receive financial and military aid from Gulf States and the International Monetary Fund, as well as diplomatic support from the US and other Western countries.
Financial aid from Gulf States and the International Monetary Fund (IMF) has provided a cushion, but it’s like placing a band-aid on a gaping wound. The aid helps Egypt maintain its geopolitical activities, such as mediating regional conflicts and expanding the Suez Canal, but it also acts as a diversion from internal issues that need urgent attention, such as high inflation, low income, heavy foreign debts, and human rights violations. The Gulf creditors are changing the way they lend financial support to Egypt, moving away from loosely conditioned handouts and toward taking stakes in some of Egypt’s assets, many of which are controlled by the military. The IMF has also approved a $3 billion support package for Egypt in exchange for economic reforms that may be difficult to implement amid the COVID-19 pandemic.
Conclusion: A Paradigm of Contradictions
Egypt’s new capital city, yet to be named, is at the intersection of vision and imprudence, of innovation and exclusion. It represents both the dreams of a nation and the disparities that mar its social fabric. While the project is a testament to human ambition, it also poses unsettling ethical and financial questions that can’t be ignored.
