Bricks for the Pyramids: Foreign Participation in Egyptian Megaprojects

Abstract

This is not the first time Egypt has resorted to implementing large-scale projects and attracting foreign funds in order to solve the problems of economic development. In the 19th century, the Suez Canal became such a project, and in the 20th century, the Aswan Dam. Each time, Egypt had to pay a high price for these initiatives. In the 21st century Egypt faces many economic problems: overpopulation, food shortages, unemployment, overload of the energy system, inflation and devaluation of the national currency, budget deficit, etc. The centralized governing model again led Egypt to the idea of megaprojects and again forced it to turn to the resources of other countries. However, this time Egypt is being cautious and trying to diversify foreign investment. In a sense, joining BRICS is a manifestation of this caution. The work identifies three groups of countries and examines their contribution to the megaprojects being implemented in modern Egypt. Based on this analysis, it is concluded that the OECD and BRICS-5 countries participate both as investors and as contractors, while the GCC countries almost always act as investors. At the same time, the BRICS-5 and GCC countries are usually represented by state corporations and sovereign funds, while the OECD countries are more often represented by private companies. This fact emphasizes the importance of BRICS as a platform for interstate negotiations that can expand cooperation between Egypt and other member countries of this organization. However, when choosing partners, Egypt is guided more by economic rather than political considerations, wanting to maintain neutrality in world politics and not become dependent on any of the political blocs. The country's economic future is uncertain, so maintaining financial and political independence in the future is a challenge for Egypt.