You hear the word Egypt, and you're wont to think of ancient history and civilizations-pharaohs and hieroglyphics, and the majestic Cleopatra floating on her caravan down the Nile. Those who have not traveled to this part of Northern Africa may not realize how much the country has changed over the centuries. While one can still see preserved remnants of this former global power, many of the country's larger cities like Cairo are well developed and, as indicated by Egypt's position in the "Next Eleven" grouping of global trade, working to improve the nation's economy.

The Economy of Egypt

Egypt relies largely on shipping to keep their economy running smoothly. Where the Nile served as the country's most important waterway in ancient times, Egypt is also dependant upon the Lake Nassar and the Suez Canal for improving domestic ecology and agriculture, with the latter used for expedited travel to Asia.

Egypt's primary source of domestic revenue comes from tourism. Thousands of visitors annually visit the great pyramids, the Sphinx, and other points of interest that serve to remind us of past civilizations and where the roots of governmental practices, literature, and religion originated. As a developing nation, Egypt is also the recipient of foreign aid and one of the United States' largest beneficiaries. In recent years, Egypt enjoys a market-oriented economy with growing prospects in the realm of exports.

Egypt trades most often with the United States, Italy, Spain, and Saudi Arabia, exporting a number of natural resources:

Crude Oil/Petroleum: With nearly twenty oil fields in the country, Egypt has yielded close to four billion barrels of crude reserves for trade with hundreds of multi-national oil companies.

Cotton: You've probably seen bed sheets in your favorite department store, made from Egyptian cotton. This is a popular commodity for trade with international textile manufacturers.

Textiles: Egypt, of course, is known for their own refined textiles and exotic apparel which are available in stores around the world.

Chemicals/Pharmaceuticals: Some will associate the ancient Egyptian look with a high standard of beauty. While women no longer to aspire to Cleopatra heavy kohl-lined look, the pharmaceuticals and chemicals produced in Egypt are used today in cosmetics and beauty aids.

Agriculture/Food: Corn, wheat, rice, and select citrus fruits are among the foodstuffs traded throughout Europe and Asia.

In exchange, Egypt relies on trade partners for the following:

Refined Fuels: What Egypt ships out in crude, they import as refined fuel to keep the economy working steadily.

Wood: With much of the country claimed by desert, there are no large forests for wood production. Egypt imports on average nearly a billion dollars worth of wood products for furniture construction and other needs.

Machinery: Drilling equipment is especially needed in this country to keep up with the world's demands for oil. What Egypt cannot manufacture, they trade.

Food: Food accounts for nearly a fifth of the nation's overall imports. While Egypt's agriculture is growing, processed foods are often brought in through other countries.

Telecommunications: The need for communication has Egypt negotiating with countries who offer mobile service, phone, and computer technology.

Once the seat of civilization and now an emerging modern economy, Egypt has withstood centuries of strife and triumphs. With a firm hand in the oil economy, it's a safe bet the nation will continue to grow and influence trade partners.

Kathryn Lively
image courtesy of Wikipedia