Why the great escape from Egypt?

Businessmen, athletes, influencers on social media and others are the protagonists of a dramatic wave of departures from Egypt.

The stars of the “Great Escape” series, who are leaving Egypt in search of a safe haven for their investments and activities abroad, are raising many questions about the future of the Egyptian economy.

The Egyptian government remains tight-lipped about the rate of market exits, despite the increasing departures and the loss of many investors and celebrities to Gulf capitals that are actively attracting talent and rare expertise.

A major crisis

The Chairman of the National Bank of Egypt, a government institution, Mohamed El-Etreby, shocked everyone by announcing that 2,360 Egyptian companies fled to the UAE during the first half of 2024.

Egyptian companies have made a significant presence in Dubai, with 4,837 registered businesses, reflecting 63.2 per cent growth in 2023, ranking Egypt third among nationalities establishing companies in Dubai—after India and Pakistan.

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Saudi Arabia has also attracted a significant share of Egyptian investments. Over the past three years, Egyptian companies have obtained more than 25 per cent of total investment licenses in the Kingdom.

According to the Saudi Ministry of Investment, 1,895 licenses were issued to Egyptian companies in 2023, and 30 per cent of Saudi investment permits in the first quarter of 2024 went to Egyptian companies.

Beyond the exit of Egyptian companies from the local market, Ezz Steel, the largest steel producer in the Arab world and Africa, with a market capitalisation of $1.1 billion, opted for voluntary delisting from the Egyptian Stock Exchange.

Previously, several major corporations took the same step, including Cairo Investment and Real Estate Development (Sierra Education), Domty for food production, Pachin chemical paints industry, Ameco Medical pharmaceuticals, The National Cement Company, Integrated Diagnostics Holdings owner of Al Mokhtabar and Al Borg medical labs across Egypt.

A well-informed source at the Egyptian Exchange, who requested anonymity, confirmed that another giant company, Elsewedy Electric, is preparing to exit the stock market soon. This, he noted, is a negative indicator—as the company has substantial capital and a strong economic standing, making it attractive to foreign investors. Its departure could deter other companies from listing on the Egyptian Exchange.

Business Environment

During a meeting with Egyptian Prime Minister, Mostafa Madbouly, in December, El-Etreby attributed the fleeing crisis to the ease of doing business in the UAE compared to Egypt. He pointed out that Egyptian investors face an unattractive business environment, an interest rate of 27 per cent, high inflation rates, and government expansion into the economy at the expense of the private sector.

Traders and investors who spoke to Middle East Monitor complained about being forced to pay commissions to government officials, having to bribe authorities to facilitate business and dealing with high tax burdens, bureaucratic red tape, rampant corruption, shortage in dollar bills and lack of competition with military-owned companies—which benefit from direct contract allocations.

Last month, the Chairman of the Egyptian Exchange, Ahmed El-Sheikh, admitted in a press conference that major companies that exited the stock market—such as Vodafone, Ezz Dekheila, Pachin, and Mobinil—have not yet been replaced. Even government IPOs were insufficient to compensate for these exits.

The increasing number of companies’ delisting has put the Egyptian market under liquidity constraints and reduced foreign investment. This prompted the Financial Regulatory Authority to tighten procedures for delisting companies from the Egyptian Exchange. However, the overall situation has raised serious concerns about investors’ confidence in staying in Egypt.

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Economic expert, Abdel Hafez El-Sawy, attributes the ongoing escaping to military dominance over the economy, marginalisation of the private sector, lack of stable legislation, corruption and lack of exchange rate flexibility. He argues that this indicates an unfavourable investment climate in Egypt which drives capital away.

Egypt’s richest man, billionaire Nassef Sawiris, with a net worth of approximately $7.6 billion, recently moved his family office from London to Abu Dhabi—not to his homeland. This aligns with a broader trend of prominent investors setting up businesses in the UAE, according to Bloomberg.

Security climate

Rather than addressing the crisis and attracting more investment and hard currency, Egyptian authorities poured fuel on the fire by arresting one of the most famous content creators in Egypt and the Arab world, Ahmed Abou Zeid. He was a nominee for the Billion Followers Award in the UAE.

Abou Zeid was arrested in December for possessing US dollars from his digital education activities and he was accused of currency trading, according to the Egyptian Ministry of Interior.

His arrest has alarmed content creators in Egypt, especially as 18,400 Egyptians were active in live streaming on Facebook and YouTube in 2022, according to the National Telecommunications Regulatory Authority.

Famous Egyptian influencer, Wael Abbas, commented on Facebook, saying: “The arrest of Abou Zeid shook the whole country because no one wants to meet the same fate. Adding: “It’s sheer stupidity.”

Meanwhile, MP Abdel Moneim Imam warned in a statement that: “Arresting Abou Zeid for possessing dollar bills—when the source is well known—damages the economy, discourages young entrepreneurs and pushes them to create content abroad. The only loser here is the Egyptian economy.”

Republic of fear

The Great Escape from Egypt was not just by businessmen and investors—it also included athletes who fled due to neglect, marginalisation and lack of funding, choosing to compete for other nations. Among them are three freestyle wrestlers: Saif Shoukry, Ahmed Hassan Boucha and Tariq Abdel Salam, and two Greco-Roman wrestlers: Ahmed Fouad Baghdoda and Mohamed Essam.

The list of Egyptian athletes who have fled their national teams in recent years includes 42 players, with 25 going to Qatar, 9 to the US and the rest to Europe and Australia. This data was published in the Scientific Journal for Applied Research in Sports, a government publication.

The common factor among all these escapes, whether by investors, influencers, or athletes, is fear: fear for the future, fear of uncertainty and fear of the authorities.

According to the Human Rights Watch 2025 Global Report: “President Abdel Fattah Al-Sisi’s government has entered its second decade with escalating repression while systematically imprisoning and punishing critics and peaceful activists. The government acts as if it can solve the economic crisis by deepening fear instead of respecting people’s economic and social rights.”

Journalist, Salah El-Din Hassan, editor-in-chief of Zat Masr, an independent outlet, criticised the security-driven mentality that governs Egypt, saying: “If you could open the Egyptian regime’s mind, you’d find only security concerns. Its focus is on just a bit of money, a few bridges and some new cities, but no politics, no culture and no respect for either. That explains how they see things and explains their policies and decisions.”

Since the military coup of 3 July, 2013, fear has permeated Egyptian businessmen, celebrities and athletes alike, as the military and security apparatus expand their influence. For many, leaving Egypt is not a choice—it is the only escape.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.