Natural Resources & Economic Status
Today, Egypt has many natural resources, and some of them include petroleum, natural gas, and phosphates. Crude oil can be located in the Gulf of Suez and the Western Desert. Also, “natural gas is found mainly in the Nile Delta, off the Mediterranean seashore, and in the Western Desert” (Global Security, 2011). Phosphates are mined along the Gulf of Suez (Global Security, 2011). In ancient Egypt, the ultimate natural resource was the Nile River. It provided the people with fish, transportation, and, above all, fertile silt brought to the shore by an annual flood. Additionally, copper was the most common metal they used (historylink101, 2016). In order to purify copper they had to separate it from the other minerals within its original ore form. They did this by performing a process called smelting (historylink101, 2016).
Egypt’s economy conditions have been harsh even before Hosni Mubarak was taken from power in 2011. However, after 2011 many of Egypt’s foreign investors dropped out leaving companies and businesses broke (Bloomberg Markets, 2016). More importantly, “food shortages are widespread and prices are soaring” (The Washington Post, 2016). An excessive amount of people, nearly one-fourth, are living in poverty and the unemployment rates continue rising. All social classes are affected by this economic crash. Inflation rates have risen to the point where Egypt can not produce enough currency to support the high prices (The Washington Post, 2016). This terrible situation caused Egypt’s government to contact the International Monetary Fund (IMF) for a three-year, twelve million dollar loan to help reform the economy and rebalance the currency markets. This plan is considered awful according to the people, but President el-Sisi believes a country has to make tough decisions in order to see change for the better (The Washington Post, 2016).
Everyday this economic inflation continues, Egypt’s tension tightens. Tourism revenue has dropped significantly since 2011. There have been several ISIS-claimed attacks (DW, 2016). Security forces have been fighting ISIS militants in the Sinai Peninsula since July of 2016. Egyptian forces have also destroyed “thousands of homes in their effort to close smuggling tunnels” for ISIS members. There has been discussion of the building of a new capital and creating another branch of the Suez Canal (DW, 2016). They are planning this even though the government does not have enough money to fund this massive undertaking (DW, 2016).
Today, Egypt has many natural resources, and some of them include petroleum, natural gas, and phosphates. Crude oil can be located in the Gulf of Suez and the Western Desert. Also, “natural gas is found mainly in the Nile Delta, off the Mediterranean seashore, and in the Western Desert” (Global Security, 2011). Phosphates are mined along the Gulf of Suez (Global Security, 2011). In ancient Egypt, the ultimate natural resource was the Nile River. It provided the people with fish, transportation, and, above all, fertile silt brought to the shore by an annual flood. Additionally, copper was the most common metal they used (historylink101, 2016). In order to purify copper they had to separate it from the other minerals within its original ore form. They did this by performing a process called smelting (historylink101, 2016).
Egypt’s economy conditions have been harsh even before Hosni Mubarak was taken from power in 2011. However, after 2011 many of Egypt’s foreign investors dropped out leaving companies and businesses broke (Bloomberg Markets, 2016). More importantly, “food shortages are widespread and prices are soaring” (The Washington Post, 2016). An excessive amount of people, nearly one-fourth, are living in poverty and the unemployment rates continue rising. All social classes are affected by this economic crash. Inflation rates have risen to the point where Egypt can not produce enough currency to support the high prices (The Washington Post, 2016). This terrible situation caused Egypt’s government to contact the International Monetary Fund (IMF) for a three-year, twelve million dollar loan to help reform the economy and rebalance the currency markets. This plan is considered awful according to the people, but President el-Sisi believes a country has to make tough decisions in order to see change for the better (The Washington Post, 2016).
Everyday this economic inflation continues, Egypt’s tension tightens. Tourism revenue has dropped significantly since 2011. There have been several ISIS-claimed attacks (DW, 2016). Security forces have been fighting ISIS militants in the Sinai Peninsula since July of 2016. Egyptian forces have also destroyed “thousands of homes in their effort to close smuggling tunnels” for ISIS members. There has been discussion of the building of a new capital and creating another branch of the Suez Canal (DW, 2016). They are planning this even though the government does not have enough money to fund this massive undertaking (DW, 2016).