Middle-class Egyptians are swapping new cars for cheaper models, cutting back on pricey supermarket shopping and giving up holidays abroad to cope with soaring living costs after currency reform a year ago.
Egypt floated its pound in November 2016 as part of a US$12 billion (Dh44bn) International Monetary Fund loan package and the currency lost half its value, eroding spending power and pushing inflation to record highs of more than 30 per cent this summer.
President Abdel Fattah El Sisi's government has been praised by IMF and World Bank economists for reform progress and for measures to shield the poorest from the fallout. But middle-income Egyptians say it has been a year of cutbacks, cost saving and crisis management.
Presidential elections are due early next year and Mr El Sisi is expected to seek another term. But some Egyptians are finding that their new economic reality is crowding out politics as they struggle to maintain standards.
Others are digging deep and insist that despite the pain of austerity, the former army chief remains the only candidate to provide stability after the years of turmoil that followed the 2011 uprising that ousted Hosni Mubarak.
"The rise in prices changed things," said Ayman, a Cairo bookstore owner. "We hoped for good things from President Sisi ... He is a good man and I voted for him, but we are not feeling the progress, all I care about is giving my son a good life, a good home."
Economic reforms have come at a fast pace.
The IMF deal called for broad adjustments to Egypt's state subsidies to slash deficits as part of Mr El Sisi's promise to revive an economy hit hard by unrest, protests and militant attacks in the last six years.
Backed by the IMF and the World Bank, Mr El Sisi's government says the overhaul will lead to long-term growth and the return of foreign investment. Officials have adopted programmes to provide the poor and vulnerable with cash and other protections.
Still, the cost of subsided fuel has doubled, electricity prices are up and a new tax helped push inflation to more than 30 per cent in July. That has now eased to 25 per cent and is expected to fall to around 14 per cent by August next year. But it has already been a crushing struggle for some.
Hisham Azz Al Arab, chairman of Egypt's largest private bank CIB, said those on middle and upper incomes were the most affected by the economic reforms, but it would take time for their impact to balance out for those families.
"We saw that clearly in their behaviour of spending, it started to change," he told CNBC. "For the middle and upper class it is a matter of time before income and productivity start to catch up to pre-reform levels."
A 2016 World Bank survey found the middle class represented around 10 per cent of the country's population of about 90 million just before the Arab Spring protests. Middle-class activists were among the leaders of the 2011 uprising.
For professionals like Karim, a Cairo small business owner, it was a stark adjustment. Monthly food bills went from 1,200 pounds (Dh247) to 3,200 pounds. That meant for the first time bargain-hunting for food, giving up luxury goods and using the car less to cut back on fuel spending.
It also meant paying employees more to keep them, while at the same time making sacrifices to keep his children in school.
"The middle class has only two options, fall into the lower class, which is hard for them to do, or get more enterprising," he said. "Everyone is trying to show they are still in the middle class, people want to tell themselves that."
For others, maintaining a middle-class lifestyle has meant dipping into savings or even turning to relatives for help with the cost of family holidays.
"It's extinct," said Islam Askar, a contracting company owner, of the country's middle class. "There isn't a household in Egypt that hasn't been hit by the decrease in the pound and the rise in the prices."
Economists say middle-class erosion had been reflected in figures for car sales, the weakness in some consumer stocks and in outbound tourism.
For some, like Mahmoud Al Abadaly, hunting for bargains among the crash-damaged vehicles at a second-hand car shop, politics comes second to cash considerations. A car normally worth 300,000 pounds can be fixed up and had for half that price, he said.
"When a car has been in an accident, its price drops," he said. "Everyone is trying to do this now because they need to save."
What impact a year of austerity will have on Mr El Sisi's popularity is unclear. He has yet to announce his intentions, though supporters have already started a petition campaign for him to run for a second term. For his hardcore backers, it is time to rally behind him despite hard times.
"I will be for Sisi again for the presidency even with inflation, rising prices and the poor state of the economy," said Ali Abou Al Saoud, a sales representative.
But some of the president's high-profile backers have turned against him, partly over the economy.
Turnout may be key for credibility, analysts say, as the government rebrands Egypt as a more stable bet for foreign investment after years of unrest. In 2014, turnout was about 47 per cent, less than Mr El Sisi had called for.
At the time, Mr El Sisi was idolised by many, although his support base has since slipped, critics say. However, protests are now restricted by law and secular activists have been rounded up. Other Egyptians say political fatigue has set in.
"There is still a strong sense of wanting to maintain and enjoy the relative security," said Ziad Bahaa Eldin, a deputy former prime minister who now works as an economist. "People are suffering from inflation but they want stability."
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
THE SPECS – Honda CR-V Touring AWD
Engine: 2.4-litre 4-cylinder
Power: 184hp at 6,400rpm
Torque: 244Nm at 3,900rpm
Transmission: Continuously Variable Transmission (CVT)
0-100kmh in 9.4 seconds
Top speed: 202kmh
Fuel consumption: 6.8L/100km
Price: From Dh122,900
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Revival
Eminem
Interscope
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
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MEYDAN RESULTS
6.30pm Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
Winner ES Ajeeb, Sam Hitchcock (jockey), Ibrahim Aseel (trainer).
7.05pm Maiden (TB) Dh165,000 (D) 1,200m
Winner Galaxy Road, Antonio Fresu, Musabah Al Muhairi.
7.40pm Maiden (TB) Dh165,000 (D) 1,400m
Winner Al Modayar, Fernando Jara, Ali Rashid Al Raihe.
8.15pm Handicap (TB) Dh170,000 (D) 1,900m
Winner Gundogdu, Xavier Ziani, Salem bin Ghadayer.
8.50pm Rated Conditions (TB) Dh240,000 (D) 1,600m
Winner George Villiers, Tadhg O’Shea, Satish Seemar.
9.25pm Handicap (TB) Dh175,000 (D)1,200m
Winner Lady Parma, Connor Beasley, Satish Seemar
10pm Handicap (TB) Dh165,000 (D) 1,400m
Winner Zaajer, Fernando Jara, Ali Rashid Al Raihe
Scores
Day 2
New Zealand 153 & 56-1
Pakistan 227
New Zealand trail by 18 runs with nine wickets remaining
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
