Egypt's Army Controls Much of the Economy

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For decades, the Egyptian military has been allowed to engage in economic activities as a way of reducing the official defence budget.

The military economy also allows senior officers to be compensated for low pay and pensions, by giving them the opportunity to acquire extra income and fringe benefits. The overall volume of such economic activities was relatively modest until 2011, when former President Hosni Mubarak was forced out of power.

But since 2013, when the military took power, the military economy has transformed. This is because President Abdel Fattah al-Sisi, a former general who became president in 2014, has relied on the military to take over major management roles in the civilian economy.

The military has effectively replaced the government in awarding contracts and managing public infrastructure. (more)