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The Egyptian army's economic juggernaut

The military plays a major role in Egypt's economy, even owning child-care centres.
05.08.13

"From needles to rockets" is a common Egyptian phrase used to describe a business offering a wide range of merchandise, and is always used in exaggeration. But when referring to the economy of the Egyptian army - which ousted the country's first civilian president last month - the expression is spot-on.

As political turmoil pushes Egypt's economy into its worst slowdown in more than two decades, only its well-heeled army can afford to construct bridges, offset bread shortages, raise herds of cattle and chicken, manufacture home appliances and even provide child-care.

"The question isn't what sectors do they invest in, but rather: is there a sector that they don't invest in?" said Robert Springborg, an expert on Egypt's armed forces and a professor in the department of national security at the Naval Postgraduate School in California.

The Egyptian armed forces, headed by Defence Minister Abdel-Fattah El Sisi, who is supervising a roadmap encompassing early presidential elections and the drafting of a new constitution, runs scores of manufacturing and service-providing companies, through which it controls a significant stake of the nation's economy.

The Ministry of Military Production manages at least 14 such companies - producing merchandise varying from tank shells and ammunition to fertilisers, sports equipment, cement, pasta and cars.

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