Why is Egypt building a new capital? | Middle East

In Egypt, a huge “new administrative capital” is being built about 45 kilometers (28 miles) east of Cairo on a desert the size of Singapore.

If you walk or drive through Cairo, you might think that the Egyptian government initiated this multi-billion dollar project to meet urgent needs.

In fact, the current capital has little effect. The ministries and embassies around Cairo’s central Tahrir Square are blocking the arteries of the city. Since many streets are blocked to ensure the safety of these buildings and their occupants, it is sometimes impossible to get from A to B in a city. In addition, it is estimated that by 2050, the population of 22 million in the already overcrowded capital will double.

Therefore, it is easy to believe that the new administrative capital is necessary. After completion, it is expected to house the embassy, ​​government agencies, parliament, 30 ministries, a spiral-shaped presidential compound, and approximately 6.5 million people. It seems that it is not only necessary to move the administrative building out of Cairo, but also to build much-needed housing. In addition, the government promised to allocate 15 square meters of green space to each resident in the new development project. The new capital will have a central “green river”, combined with open waters and green plants, with an area twice the size of New York’s Central Park. Therefore, the project was also sold to solve the pollution problem and make Egypt “greener”.

But if you look at it from the surface, the most important thing is to follow the money, you will clearly see that this project is not just a selfless effort made by the government to alleviate the congestion in Cairo and improve the living conditions of city residents.

The army pays, the army benefits

The new administrative capital is expected to cost approximately US$40 billion. 51% of the Administrative Capital for Urban Development (ACUD), the company responsible for overseeing the project, is owned by the Egyptian military, and the remaining 49% is owned by the Ministry of Housing.

The huge role played by the military in funding the project further proves that in a country ruled by a former army general, civil and military are conflated—the current President Abdel Fattah el-Sisi is Mohammed Morsi, the first elected president of Egypt, came to power behind a “coup”.

The military not only “paid the bill” for the project. It will also reap huge economic benefits from this ambitious effort. ACUD, in which the military holds a majority stake, is responsible for selling houses in the new capital. In addition, the company is also responsible for the sale or operation of buildings in Cairo, which will be vacated after institutions, ministries and embassies are relocated to new locations. Some of these buildings are located in the center of Cairo, overlooking Tahrir Square and are of great value.

This means that once the new capital is built, the military will receive huge financial returns. In addition, these proceeds will not be inspected by the civilian authorities, because the government has little oversight of the military’s finances.

The construction work itself is a huge economic opportunity. Building a new city requires not only capital, but also cement, bricks, electrical appliances, carpentry, safety equipment, and most importantly, manpower. Therefore, the project is an opportunity to create much-needed employment opportunities and revitalize Egypt’s core industries (such as the construction industry).

But some people worry that the project will not only help the country’s pillar industries and troubled companies get back on their feet, but it will also allow the military to further extend its reach to the Egyptian economy. For example, the military has the ability to provide most of the steel and cement needed to complete the construction of new cities. In addition, it can obtain cheap manpower in the form of low-paid applicants. Therefore, the army may benefit most from this unprecedented construction activity.

A new city for a privileged minority

It is unclear who will be able to live after the completion of the new capital. The housing units there are sold at very high prices. A two-bedroom apartment in the new capital sells for about US$50,000—a huge amount that many people cannot afford in a country with a per capita gross domestic product (GDP) of about US$3,000.

Therefore, it seems that the new administrative capital will become another gated community for the rich, and it will do little to satisfy the housing needs of the poor and disadvantaged residents of Cairo.

If the government does not take emergency measures to ensure that the doors of this new city are also open to impoverished citizens, then this new project will have little effect in helping impoverished Egyptians. This is why the new administrative capital has been regarded by many as a huge waste of resources. Critics say that the funds used to build the new capital should have been used to improve living conditions in the impoverished area that will soon be called “Old Cairo.” In response to these criticisms, the government stated that the city will eventually include social housing, but did not provide detailed information on when these units will be built and made available to those in need.

All of this is reminiscent of the Hosni Mubarak regime and its downfall. The last decade of Mubarak’s rule was supported by the rise of wealthy capitalist groups that helped economic growth, but at the same time prevented the benefits of this growth from reaching the poorer sections of society. One of the most prominent slogans in the January 2011 protests against the overthrow of Mubarak’s regime was “social justice”. Through this project—which could make the country’s wealthy people richer, the army stronger, and lead to increased resource allocation—Sisi seems to be repeating the mistakes that led to the downfall of Mubarak.

But if the project cannot help the people or increase their support to the government, why did Sisi make such a huge effort?

Stability, legality and legacy

Egypt’s new administrative capital may not be of much help to ordinary Egyptians, but it will provide some key benefits to President Sisi.

First, this new project will help bring powerful Egyptian companies to el-Sisi. During Mubarak’s rule, the private sector had important economic and political influence in Egypt. But after Sisi came to power, most of them were squeezed out by the military and reduced to a secondary role.

In a neoliberal economy like Egypt, authoritarian governments need the support of the private sector to maintain stability. el-Sisi knows that huge construction efforts—such as building a new capital—are the best way to win a business.

Although the military may be the biggest beneficiary of the construction of the new administrative capital, the project is large and lucrative, and will also create opportunities for the private sector.

For example, Talat Mustafa Group, one of Egypt’s largest construction companies, laid the foundation for the “Smart City Project” “Nur City” of the new administrative city. Such projects incentivize the private sector to support the government and provide substantial tax revenue. For example, the city of Noor is expected to generate 7 billion U.S. dollars in taxes.

The new capital will also give el-Sisi much-needed legitimacy.

For a long time, the cult of personality has been an important aspect of Egyptian politics. Over the years, Egyptian rulers have repeatedly tried to prove the legitimacy of their authority by naming cities, buildings, roads and bridges after themselves. There is a city named after former Egyptian leader Anwar Sadat, and dozens of bridges and roads are named after former President Hosni Mubarak.

Although the new administrative capital is not named after el-Sisi, it is his flagship project and legacy. State-controlled media reported extensively on his regular visits to the city. It is impossible to think of new cities without considering el-Sisi. The main mosque in the new administrative capital is called “Al-Fatah al-Aleem” [the opener, knowledgeable], The two names of God, but some people think they are references to the connotation of the president, and the president’s name is Abdul Fatah.

Finally, and perhaps most importantly, the new project will help Sisi control any future resistance to his regime and consolidate his power.

As early as 2011, all of us in Egypt knew that Mubarak lost power the moment he lost control of the strategic Tahrir Square.

The protesters occupied the square on January 28, 2011 and established what they called the “Liberation Republic”. They appointed a symbolic cabinet minister, created their own security agency, and burned down the ruling National Democratic Party headquarters overlooking the square. Suddenly, the Mubarak regime lost its legitimacy.

And in June 2012, on the day of his election, Morsi went to Tahrir Square to greet the crowd and did not push his jacket-showing that he did not wear a bulletproof vest, and as their representative, not afraid of them. He controls Tahrir Square and therefore Egypt.

Just a few months later, Morsi’s opponents were packed with the same square, first calling for and celebrating his removal.

Through all this, Sisi is undoubtedly taking notes and realizing that Tahrir Square is the key to gaining and maintaining power in Egypt.

Therefore, he immediately began to work hard to deprive him of his position as the arena for determining the legitimacy of the Egyptian regime.

It is now impossible for the people to occupy Tahrir Square and challenge the legitimacy of the Sisi regime. His government dotted the space with pharaoh monuments and private security guards to ensure that it would not be filled by anti-government protesters.

Now, in order to further reduce the importance of the square, he is shifting the country’s center of gravity, its main institutions, and power seats to a fortified artificial desert oasis about 45 kilometers (28 miles) away.

On February 11, 2011, the Egyptian people walked from Tahrir Square to Mubarak Presidential Palace and forced him to step down. However, once the president moves to the new administrative capital, this expression of public will will no longer be possible. The country has confirmed that the new capital will be well protected by the most advanced electronic monitoring system. More importantly, it will be far from Tahrir Square and any other public places, where Egyptians can gather to express their dissatisfaction with those who rule them.

In short, the new administrative capital will help the military government consolidate power. It will help the private sector make money and strengthen relations with and loyalty to the government. This will allow el-Sisi to give legitimacy to its regime and establish a legacy. But the government’s response to these claims is justified-the project will bring tangible changes to the lives of ordinary Egyptians living in the country’s crowded capital, and major construction work will push the national economy forward. So how do you view the new administrative capital? Since the project will take several years to complete, it is still inconclusive.

The views expressed in this article are those of the author and do not necessarily reflect Al Jazeera’s editorial stance.