Israel - Egypt 22.09.2025
Facing confrontation with Israel? Egypt increases its defense budget
Here are the implications for the economy of Egypt and for its people. It doesn't look good.
Egypt is allocating more budgets to security - this is the main message of recent weeks.
After 711 days of war in Gaza and the start of the IDF's ground operation in Gaza City, the authorities in Cairo are sharpening their priorities: more money for armaments and deterrence, less for civilian budgets.
This is happening while Egypt's foreign currency revenues are declining: revenues from the Suez Canal collapsed in 2024 to $3.9 billion (a 61% decrease compared to $10.2 billion in 2023) and fewer tourists are arriving.
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