Egypt's Economy
The New Administrative Capital
How Egypt is building a vast new capital city in the desert east of Cairo, why the government pursued megaprojects, and debates over their costs and debt.
Egypt is building a New Administrative Capital east of Cairo.
The project
- Announced in 2015.
- Ministries, parliament, a business district and Africa’s tallest building, the Iconic Tower.
- Government offices began moving in from 2023.
Why
- Relieve crowding in Cairo.
- Showcase development.
Other megaprojects
New roads, bridges, the canal expansion and new cities.
Debates
- Supporters: creates jobs and modern infrastructure.
- Critics: huge costs and debt at a time of crises; benefits may not reach ordinary people.
Economics
Megaprojects must earn returns to justify the borrowing behind them.
The empty towers
New apartment blocks in the new capital stand partly empty, as few families can afford to move.
Thinking big construction always boosts growth sustainably
Debt-funded projects need returns.
Key takeaways
- Egypt is building a new capital since 2015.
- Ministries began moving in from 2023.
- Supporters cite jobs and infrastructure.
- Critics cite costs and debt.
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