Geopolitical Briefing: Egypt
— 2 June 2025
- Egypt announces plans for a new desert city, reallocating Nile water resources.
- Russia expands its diplomatic presence in Egypt with a new consulate in Sharm el-Sheikh.
- Hamas agrees to resume indirect negotiations, with Egypt intensifying mediation efforts.
- International pressure mounts on Egypt over the detention of activist Alaa Abd El-Fattah.
- IMF completes its review of Egypt's economic program, noting progress and challenges.(Reuters, The New Arab, The Times of India, The Times, Reuters)
On 1 June 2025, Egypt unveiled plans to construct a new desert city named Jirian, located 42 kilometers west of Cairo. The project aims to address water shortages, power constraints, and economic challenges by diverting approximately 7% of the country's annual Nile River water quota—about 10 million cubic meters daily—from the fertile Nile Delta to support the city and the adjacent New Delta agricultural project. The development includes upscale residential units, commercial zones, a marina, and a free economic zone, and is a collaboration between three private developers and the military-affiliated Mostakbal Misr for Sustainable Development agency. While the project is presented as a solution to pressing issues, the reallocation of vital water resources from the Nile Delta raises concerns about long-term sustainability and the potential impact on existing agricultural areas. This initiative reflects Egypt's ongoing efforts to assert control over its resources and stimulate economic growth through large-scale infrastructure projects.(Reuters)
Russia has announced plans to open a new consulate in the Egyptian Red Sea resort of Sharm el-Sheikh, as part of efforts to expand its diplomatic footprint in the region. The decision, made by Russian Prime Minister Mikhail Mishustin on 27 May, aims to support Russian diplomatic presence in key Egyptian cities and cater to the increasing number of Russian tourists visiting the country. This move signifies Russia's intent to strengthen bilateral relations and increase its influence in Egypt, potentially providing Cairo with alternative partnerships beyond its traditional alliances. The expansion of diplomatic ties with Russia may offer Egypt greater flexibility in its foreign policy and economic engagements.(The New Arab)
On 1 June 2025, Hamas expressed readiness to engage in a new round of indirect truce negotiations, following the collapse of previous talks. Mediators Qatar and Egypt are intensifying their diplomatic efforts to revive peace discussions, indicating a potential opening for de-escalation in the prolonged conflict. Egypt's role as a mediator underscores its strategic position in regional affairs and its commitment to facilitating dialogue between conflicting parties. By actively participating in these negotiations, Egypt reinforces its influence in the region and its dedication to regional stability.(The Times of India)
International pressure on Egypt has intensified regarding the detention of British-Egyptian activist Alaa Abd El-Fattah. On 29 May 2025, former British ambassador to Egypt, John Casson, along with other prominent figures, urged the UK government to revise its travel advice to Egypt, citing human rights violations and the continued imprisonment of Abd El-Fattah. Additionally, on 31 May, reports emerged that Abd El-Fattah's mother, Laila Soueif, was hospitalized in London after resuming a hunger strike to protest her son's detention. These developments highlight the growing international scrutiny of Egypt's human rights record and the potential diplomatic repercussions of its domestic policies. The situation may impact Egypt's relations with Western nations and its reputation on the global stage.(The Times, AP News)
The International Monetary Fund (IMF) completed its review of Egypt's economic program on 27 May 2025, acknowledging substantial progress toward macroeconomic stability. The IMF upgraded its growth forecast for Egypt's fiscal year 2024/25 to 3.8%, citing stronger-than-expected performance in the first half of the year. Private investment's share in total investment rose significantly, indicating increased confidence in the Egyptian economy. However, challenges remain, including inflationary pressures and the need for continued structural reforms. The IMF's assessment reflects Egypt's ongoing efforts to implement economic reforms and attract investment, aiming to enhance economic sovereignty and reduce reliance on external support.(IMF)
