Egypt’s economy struggles with rising refugee crisis

Palestinians, Sudanese and Syrians fleeing war have found a home in the country, Egyptians try to find a way to survive in the financial damage

According to the article in The New York Times, Egypt is grappling with a growing refugee crisis amid its ongoing economic challenges, with the government increasingly blaming foreign migrants for the country’s hardships.

Palestinians, Sudanese, and Syrians escaping conflict have sought refuge in the country. However, Cairo claims that the influx of newcomers is putting a strain on resources and is now seeking financial assistance from Western nations, reports Caliber.

In more favorable times for Egypt’s refugees, Azza Mostafa, a pro-government TV anchor, expressed nothing but warm support for the thousands of Syrians who had settled in Egypt after their country descended into civil war in 2011.

However, in June, she was on air denouncing the rising number of outsiders in Egypt, reflecting the shift in the country’s leadership, whose stance on refugees and migrants has become more rigid due to the ongoing economic crisis exacerbated by wars in Gaza, Sudan, and Libya.

For years, Egypt had been a welcoming haven for various foreign groups, allowing them to live and work with little interference, whether they were refugees, migrant workers, or even Westerners seeking refuge from COVID-19 lockdowns. Over the past 13 years, the country—often referred to as the «mother of the world» in the Arab world—has seen a steady influx of people fleeing conflict, including not only Syrians but also Sudanese, Yemenis, Eritreans, and, more recently, Palestinians from Gaza.

Egypt says it spends $10 billion each year on its nine million refugees, according to officials and government-controlled media (though experts say both numbers are greatly exaggerated), all while Egyptians endure soaring prices and subsidy cuts.

Years of government overspending, reliance on imports and policies that neglected private-sector growth left the country’s finances in precarious shape before the wars in Ukraine and Gaza sent them crashing. Egypt lost $7 billion in crucial revenue from the Suez Canal in 2024 as the conflict in Gaza has squeezed shipping in the Red Sea, according to government officials.

With Egypt deep in debt and hard-pressed to pay for imports such as wheat and energy, the currency has crashed, while some goods have become difficult to find.

Last month, Egypt passed a law that would hand responsibility for screening refugees and others to the government, instead of to the United Nations refugee agency.

Government officials said the measure would ensure a wide array of refugee rights. Critics of the move, however, said that it would become far harder for refugees to gain protection or access to health care and schools. The law also empowers the government to revoke refugee status on vague grounds such as breaches of national security, political activity or violations of Egyptian social customs.