When typing ‘Egypt’ into a search engine such as Google, the resulting website recommendations are dominated by discount holiday offers, travel guides and tours of ancient monuments. Last year, the tourism industry in Egypt raked in more than US$ 11 billion, which, for a country that is more than 90 percent covered by desert, is quite an impressive feat. Almost 13 million people holidayed in Egypt in 2008, and, although they were bound to be attracted by the promise of sun, sea and sand, it is easy to see why. This is a land bursting with history, famous for its ancient civilisation and some of the world’s oldest and most mysterious structures, which perhaps also offer some entertainment value to culturally-starved Westerners half expecting to be chased out of a pyramid by a mummified pharaoh.

But behind the façade of five-star hotels and so-called ‘Adventure Tours’, Egypt is much more than a holiday resort. The land has huge reserves of natural gas, which it exports to several countries, as well as oil, phosphates and limestone. Furthermore, the country’s extensive history, while making it an appealing tourist destination, led Charles Darwin to state that Africa might have been the cradle of the human race. Although there is no conclusive proof of this, many signs indicate that one of the first civilisations created by human-like beings may have been in the Nile Valley around 700,000 years ago, if not earlier. Perhaps Egypt’s most valuable natural resource, the Nile stretches for 6,650 kilometres, flowing from south to north. The civilisation of the country has depended on this mighty river for millennia and still does today, with the vast majority of its 76 million people living in close proximity to the Nile’s banks, where nearly all of the cultural and historical sites of Ancient Egypt are found.

An eventful past

Egypt is said to have the longest continuous history, as a unified state, of any country in the world. Evidence of organised, permanent settlements in Egypt that were focused around agriculture, dates back to around 5500 BC. The first pharaohs however, did not come to power until about 3150 BC. Phenomenal advances were made in architecture and technology during the Old Kingdom, resulting in the building of the first Egyptian pyramid, the Pyramid of Djoser. Pharaonic Egypt was prolonged until around 526 BC, and centuries of unrest and invasion followed, in which the country successively succumbed to foreign rule, and proved unable to escape from it for more than 2,000 years. During this time, Egypt was governed by the Persians, the Macedonians, the Romans, Arab Caliphs, the Ottomans, the French and the British.

In 1805, power was seized by Muhammad Ali, and Egypt entered into a period of rapid reform and modernisation. Muhammad Ali is widely regarded as the ‘father of modern Egypt’, and through the institution of dramatic reforms in the military, economic and cultural spheres, he established a dynasty that would rule Egypt until the revolution of 1952. He expanded the country’s cultivation areas, planted crops specifically for export, and used the surplus for public works, and to finance industrial development and the military. 

In 1854, a French engineer was granted a concession for the construction of the Suez Canal. The excavation for the canal lasted almost 11 years, with an estimated 30,000 people being forced to work on the project. It finally opened in November, 1869, and had an immediate effect on global trade, also increasing European penetration and colonisation of Africa. The British soon recognised the economic importance of the trade route, acquiring 44 percent of the Suez Canal Company in 1875. They took full control of the canal in 1882, when Egypt became part of the British sphere of influence in the region.

A time for revolution

Egypt’s first modern revolution took place in 1919, and was a culmination of dissatisfaction with British rule in the country. Great Britain eventually issued a declaration of Egypt’s independence on 22nd February 1922. But British control lingered, and in the years leading up to the 1952 Revolution, the Egyptian monarchy was seen as being increasingly corrupt and pro-British, and institutions such as the police were rife with corruption. Riots broke out in Cairo in January, eventually resulting in a military coup on 23rd July, which was carried out by the Free Officers movement, and led by General Muhammad Naguib and Gamal Abdel Nasser, who were to become the first and second Presidents of Egypt. Industrialisation and modernisation followed, with planning for the Aswan Dam beginning in 1954. At a time when the Cold War was beginning to have an effect in the Middle East, the USA and Britain saw Nasser, now President, as a potential ally, and offered financial assistance for the construction of the dam. However, this offer was cancelled after Egypt bought weapons from the communist government of Czechoslovakia. Nasser nationalised the Suez Canal in 1956, leading to the Suez Crisis and a closer relationship between Egypt and the Soviet Union.

Former Vice President Anwar El Sadat became President of Egypt in October 1970, and completely altered the country’s direction. Sadat was immensely popular with the Egyptian people, and used this popularity to embark on vast economic reforms, which put an end to the socialist methods of Nasserism. He introduced a new economic policy, the most significant feature of which was the infitah, meaning ‘open door’. His leadership in the October War of 1973, and the regaining of Sinai, made Sadat an Egyptian hero. Even so, the last few years of his presidency saw allegations of corruption and the so-called ‘Bread Riots’, and on 6th October 1981, Sadat was assassinated. He was succeeded by his Vice President, Hosni Mubarak.

Economic reform

President Mubarak has undertaken an ambitious economic reform programme since 1991, with the aim of reducing the size of the public sector and expanding the role of the private sector. During the 1990s, a series of International Monetary Fund (IMF) arrangements, together with external debt relief that arose from Egypt’s participation in the Gulf War coalition, helped the country to improve its macro-economic performance. Foreign investment increased after the turn of the millennium, and Egypt moved towards a more market-oriented economy. Nonetheless, the country remains plagued by high unemployment and low standards of living, and now has a recession to deal with. 

Egypt has enjoyed an average economic growth rate of about seven percent for the past three years, but the President has indicated that this is likely to contract to four percent. In his annual Labour Day speech last month, Mubarak said, “Yes, we will be affected by the current crisis. Our growth rate will fall to four percent.” He also indicated that his pledge to provide half a million jobs per year is likely to fall short this year, noting that declining revenues from the Suez Canal, foreign investment and workers’ remittances would “temporarily hurt our economy’s capacity to provide the job opportunities.”

The tourism industry, a cornerstone of the Egyptian economy, is also suffering. Statistics indicate that the growth rate in foreign tourists has dropped since October last year, and according to the Egyptian Travel Agencies’ Association, the increase in foreign tourists for the next four years will slow down to an estimated six percent, compared to more than 16 percent over the last four years. 

The return of the veil

In addition to challenges presented by the global recession, Egypt is experiencing something of an Islamic revival, despite the fact that it plays host to the biggest Christian community in the Middle East – ten percent of the population. Coptic Christians endure strained relations with Egypt’s Muslims, and violent clashes have erupted between the two sides in recent years. The Muslim Brotherhood, founded in Egypt in 1928, is the most powerful political opposition organisation in the country. Although officially banned in 1954, its members continue to operate hospitals, schools and other charities, and currently hold 88 seats in Egypt’s 454-seat parliament. 

Around the same time that Hasan Al-Banna was recruiting the first affiliates of the Brotherhood, Egyptian women participated in a rebellion against the veil, and by the 1960s, the veil had vanished from daily life in the country. Today, however, an increasing number of well-educated and professional women are voluntarily donning the veil, although it is not quite the stark black shroud that was worn by previous generations. This re-embracing of the veil is the most noticeable sign of the Islamic resurgence that is sweeping across Egypt, but not the only one. A conservative revival of Islam has been discreetly adapting the nation’s society and culture for the past 30 years, causing it to gradually become less secular. Egyptians are discontented with years of unchecked corruption and inadequate leadership, and see a return to Islam as a way to re-instate the importance of strong morals and family values, and to bring hope and peace back into their lives.

Peace is also on the mind of President Mubarak, as he recently convened with Israeli Prime Minister Binyamin Netanyahu in Egypt, and they are both due to meet President Obama in Washington, to discuss the current instability in the Middle East. Shi’ite Iran’s influence in the region and its nuclear capabilities are likely to be top concerns for the three leaders when they come together.

Bringing an ancient civilisation into the future

In order to cope with the recession, the Egyptian government has vowed to take measures to boost the rate of economic growth. For the third year running, Egypt has been rated one of the top ten reformers of its business environment, according to the World Bank’s ‘Doing Business’ report, and is still considered an important emerging market. It even boasts a town with zero unemployment in the form of Damietta, a thriving port in the Nile Delta. Considering unemployment in the nation rose to 9.4 percent in the first quarter of 2009 (according to the Central Agency for Public Mobilisation and Statistics), this is a remarkable success in these troubled times.

It is difficult to predict what will ensue in Egypt’s future, but change is certainly on the agenda. President Mubarak is now 81 years old, and the rising visibility of his son Gamal on the political scene has provoked rumours that he is being groomed for the presidency; something which many Egyptians believe ­could lead to a family dictatorship in the country. As for the rise of Islamic fundamentalism, it could be that the Muslim Brotherhood has experienced a temporary setback in its plans: “When we are not advancing, we are retreating. And right now, we are not spreading, we are not achieving our goals,” the Brotherhood’s second-in-command, Mohamed Habib, said in an interview. If a strong, ethical and assertive leader succeeds Mubarak as President, one who can moderate and discourage political and religious extremism, there is every chance that he will be able to carve out a place for this ancient country in the modern world.