Egypt struggles with rising refugee crisis amid economic crisis

According to its article, The New York Times features that 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.

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’s relaxed immigration policies allowed many refugees to live in the country without formal registration or long-term residency permits. Despite this, they managed to integrate into Egyptian society, supporting themselves and even starting businesses. However, following the surge of refugees fleeing Sudan's civil war in 2023, the financially strained Egyptian government began to increasingly vocalize concerns about the strain caused by foreign nationals. In response, Cairo tightened its policies, aiming, analysts and diplomats suggest, to gain more backing from international donors who are keen to curb migration to their own countries.

According to Egyptian officials and state-controlled media, the government spends $10 billion annually on the country's nine million refugees (though experts argue these figures are exaggerated). At the same time, Egyptians face rising prices and cuts to subsidies. Years of overspending, dependence on imports, and a lack of policies to foster private sector growth left Egypt’s finances in a vulnerable state, which worsened with the wars in Ukraine and Gaza. In 2024, Egypt lost $7 billion in revenue from the Suez Canal as the Gaza conflict disrupted shipping through the Red Sea, government officials report.

With Egypt deep in debt and struggling to afford vital imports like wheat and energy, its currency has plummeted, making some goods increasingly difficult to find.

Ahmed Abu Al-Yazid, head of the state-owned Delta Sugar Company, blamed refugees for the sugar shortage, which experts attribute to the ongoing economic crisis. The president also accused refugees of depleting Egypt’s vital water resources. 

By Naila Huseynova