Egyptian Economies
A look at the traditional economic systems and major industries of Egypt.
Trade and Commerce in Ancient Egypt
The dynasties of Ancient Egypt held almost exclusive control of its trade activity. Unlike later civilizations, Egypt did not possess an independent merchant class. Instead, commerce flowed along the Nile through the pharaoh’s officials and temples. These individuals worked to secure valuable resources and luxury goods for the royal family. They exported the abundant grains, papyrus, and flax for goods they lacked like stone, timber, iron, slaves, and precious stones. While Egypt possesses its own gold deposits, pharaohs also imported the metal in large quantities.
The kingdoms’ main partner in trade was Nubia to the south, which connected it to the wealth of Sub-Saharan Africa. The Phoenician city of Byblos was also a long-standing trade ally. Most ancient trade took place by boat. Caravans employed mainly donkeys, the camel being a later introduction to the region.
The common people of predynastic and dynastic Egypt had little need for foreign goods. The majority lived as farmers along the Nile Valley. Their lifestyles, while not extravagant, tended to be more wealthy and comfortable than those of neighboring civilizations. They paid taxes in grain, which was then distributed to the public as bread and beer. This practice allowed the state to maintain a large bureaucratic workforce, as well as supporting the construction of immense public monuments.
Ancient Egypt minted no coins and operated on a barter system. It did, however, have standard units of value known as the shat and deben. Both measured the value of an item against a certain weight of copper, silver, or gold.
The Greek and Roman Economies of Egypt
When Egypt’s native rulers fell, their self-contained economy also disappeared. Egypt’s wealth of grains and gold became a tool for other empires, particularly after its acquisition by Rome. The Ptolemaic dynasty, ruling from 305 to 30 BCE, introduced coinage to Egypt and more advanced foreign trade. The Ptolemies moved Egypt’s capital to Alexandria, one of the busiest cities of its time, and established its first mint in Memphis. Grain, notably durum wheat, remained the major commodity of the kingdom. While coins entered common usage, most rents were still paid through wheat. Instead of funneling almost all wealth to the pharaohs, a ruling Greek class now sat at the top of society. Trade expanded to include individuals, rather than the state alone.
Under the Roman Empire, the basic economic system of the Ptolemies persisted. Rome and Alexandria both relied on Egyptian grains to feed growing urban populations. The Roman policy of “bread and circuses” was in large part made possible by Egyptian exports. In addition, the Romans encouraged privatization of land and business. They imposed new taxes on their citizens, which proved generally unpopular, but also sponsored a growth in personal wealth.
Egyptian Trade in the Islamic and Ottoman Eras
Islamic dynasties came to control Egypt in the 7th century CE. The Fatimids, based in Cairo, built on the earlier trade and infrastructure of Egypt to become a major commercial power of the Mediterranean. Taxes on non-Muslim populations like Coptic Christians and Jews led to periodic revolts, but for the most part the agricultural economy of Egypt continued to generate reliable income for its rulers. Rulers of the Fatimids, Ayyubids, and Mamluks built elaborate mosques, palaces, and libraries as well as funding regular warfare in the region.
Under the Ottoman Empire, Egypt transformed from a mainly agrarian economy to a more industrial society. By the early 19th century, cotton had become a major cash crop through the reign of Muhammad Ali. Egypt experienced a boom during the United States’ Civil War, when cotton exports came to a halt. It enabled the construction of new urban centers and the Suez Canal, but it also led to a market crash when exports resumed. This period saw significant investment in Egypt by European powers, which would later lead to its occupation by the British until the mid-20th century.
Modern Economics of Egypt
By the time Egypt gained true independence in 1952, it was still an agricultural economy. President Gamal Abdel Nasser worked to modernize the nation through manufacturing and nationalization of various industries. Tourism driven by its sunny climate and ancient monuments has become another major source of revenue. The Suez Canal, a major shipping route linking the Red and Mediterranean Seas, is also a vital element of its economy. Nonetheless, has Egypt struggled to overcome the cost of multiple wars and a growing population. Recent social and political turmoil has dampened its tourism and deterred foreign investment. According to the CIA World Factbook, its primary industries are textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, and construction.
References
Asante, Molefi Kete. Culture and Customs of Egypt. Greenwood Publishing Group. 2002.
Brier, Bob and A. Hoyt Hobbs. Daily Life of the Ancient Egyptians. Greenwood Publishing Group. 2008.
Fischer-Bovet, Christelle. Army and Society in Ptolemaic Egypt. Cambridge University Press. 2014.
Lev, Yaacov. State and Society in Fatimid Egypt. Brill. 1911.
Najovits, Simon R. Egypt, Trunk of the Tree, Vol. I: A Modern Survey of and Ancient Land. Algora Publishing. 2003.
Petry, Carl F, ed. The Cambridge History of Egypt. Vols. 1-2. Cambridge University Press. 2008.
Riggs, Christina. The Oxford Handbook of Roman Egypt. Oxford University Press. 2012.
Romer, John. A History of Ancient Egypt: From the First Farmers to the Great Pyramid. Macmillan. 2013.
Silverman, David P. Ancient Egypt. Oxford University Press. 2003.
“The World Factbook: Egypt.” Central Intelligence Agency, Central Intelligence Agency, 30 Oct. 2018, https://www.cia.gov/the-world-factbook/countries/egypt/
Von Reden, Sitta. Money in Ptolemaic Egypt: From the Macedonian Conquest to the End of the Third Century BC. Cambridge University Press. 2007.
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