Economic development in the Egyptian desert

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Date: 18 - 08 - 2024

Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

The Egyptian desert constitutes a large part of the country’s area, covering about 96% of the land. This vast area is a treasure trove of natural resources and diverse investment opportunities that can contribute to achieving enormous economic benefits, if they are exploited in innovative and sustainable ways in areas such as renewable energy. , tourism, mining, agriculture, industry, in addition to scientific research, transportation and logistics.

In the field of renewable energy, Egypt is one of the countries most exposed to sunlight, making it an ideal location for establishing solar power plants. These major projects can feed energy into the national grid, while smaller projects provide electricity to homes, commercial and industrial facilities. According to a report by the International Renewable Energy Agency, Egypt can produce about 20 gigawatts of solar energy by 2030; This production will be enough to operate more than 17 million homes annually or more than 38 million electric cars annually.

In addition to solar energy, some areas of the Egyptian desert have strong winds that make them ideal for establishing wind power plants. These stations can play a major role in supplying the national grid with electrical energy, as well as supplying remote areas with electricity, and contributing to improving the quality of life in those areas. The Ministry of Electricity and Renewable Energy estimates that Egypt can generate about 7 gigawatts of wind energy by 2030.

Desert tourism represents a promising field for investment, as the Egyptian desert is characterized by stunning natural landscapes and a rich history, which makes it a distinctive tourist destination. Investment in this sector can include establishing tourist resorts, providing accommodation and entertainment facilities, and organizing trips to explore the unique natural and cultural landscapes of the desert. These activities can provide employment opportunities for local communities and support the local economy and sustainable development in these areas.

Mining is another field that holds great potential in the Egyptian desert, which contains enormous mineral resources such as gold, copper, iron, and manganese. Developing this sector could provide many job opportunities for local communities and support Egypt’s role as a major exporter of minerals in the region, especially if projects include mines for mineral extraction and processing plants. According to a report by the Mineral Resources Authority, Egypt has reserves estimated at about 1.7 million tons of gold, in addition to large reserves of other raw minerals in the eastern and western deserts and the Sinai region.

In agriculture, modern irrigation techniques such as drip irrigation can be used to transform parts of the desert into productive agricultural areas. Growing high-value crops such as fruits and vegetables can help achieve food security and provide essential food sources. Studies indicate that using modern irrigation techniques can increase crop productivity by up to 50%. This level of productivity will support food security and reduce dependence on importing wheat, which in turn will provide hard currency and support the country’s trade balance.

Industry in the Egyptian desert can take advantage of available resources such as sand, gypsum, and clay. These materials can be used in the manufacture of building materials such as bricks, cement, and glass, which supports the industrial sector and provides local products at competitive prices. Studies show that using local materials can reduce construction costs by up to 30%. This percentage, which reaches at least $18 billion annually, would support more investment in the construction sector, improve the purchasing power of investors, and support local industries.

Transport and logistics represent a great opportunity in the Egyptian desert, as this region is considered an important corridor for trade between Arab and African countries. Establishing transportation and logistics projects can facilitate the movement of goods across the Sahara, and enhance regional and international trade. These projects can contribute to reducing transportation costs by up to 25%, or about $6 billion annually. This saving will contribute to increasing operational efficiency, stimulating investment in infrastructure, and providing new job opportunities.

We come to another important part, which is that the Egyptian desert provides an ideal environment for scientific research in the fields of renewable energy and the environment. This research can help in developing new technologies to exploit natural resources in sustainable ways, and contribute to improving Egypt’s capabilities and position in environmental and technological innovation. According to global estimates, the rate of return on investment in research and development reaches 25%. Currently, Egypt invests about 0.71% of its GDP in research and development, which makes this type of investment very feasible.

However, it is important for policy makers to encourage such investments, provide incentives such as land access facilities and tax reductions, and work with a strategic vision to improve basic infrastructure such as roads, electricity, and water, to facilitate the establishment and operation of new projects. These investments constitute a necessary strategic step to redefine Egypt’s environmental, social and economic future, and achieve comprehensive transformation on the foundations of sustainability and innovation.