The Military's Role in the Economy

How Egypt's military owns and runs businesses from construction to food, the advantages these firms enjoy, and concerns that this crowds out private investment.

Egypt’s military is a major economic player.

What it does

Military-linked firms operate in construction, cement, food, fuel stations, roads and more.

Advantages

Exemptions from some taxes and fees.
Access to conscript labour and land.
Priority for state contracts.

Concerns

Crowding out private businesses that can’t compete.
Lack of transparency.

IMF pressure

IMF programmes pushed Egypt to reduce the state’s economic role and sell stakes in state firms.

Economics

A level playing field matters for private investment.

The cement plant

A private cement maker struggles when a large military-owned plant adds capacity with state support, pushing down prices.

Thinking armies only fight wars

Egypt's military runs large businesses.

Key takeaways

Egypt's military runs many businesses.
They enjoy tax and cost advantages.
Critics say they crowd out private firms.
The IMF pushed for a smaller state role.