A draft Egyptian law expanding the powers of the military-linked Future of Egypt Authority would further concentrate economic and political power around President Abdel Fattah al-Sisi while undermining Cairo's commitments to economic reform , a leading Egypt analyst has warned.
The proposed legislation would place the Future of Egypt Authority under direct presidential oversight while significantly expanding its powers over state assets, investment and development projects.
Speaking to The New Arab , Robert Springborg, an adjunct professor at Simon Fraser University, research fellow at the Italian Institute of International Affairs, and veteran scholar of Egyptian political economy, said the legislation represents a shift not simply in the balance between civilian and military institutions, but towards greater presidential control as well.
"The draft law transfers control of the Future of Egypt Authority from the military to the presidency, further consolidating and expanding his personal power at the expense of the state as a whole, of its civilian institutions including the Administrative Control Agency and parliament, and of the Ministry of Defense," Springborg said.
The Future of Egypt Authority has emerged as one of Egypt's most significant state development bodies in recent years, overseeing large-scale agricultural, land reclamation and infrastructure projects.
Under the draft law seen by Reuters , the authority would gain broader financial and administrative autonomy while reporting directly to the president.
The proposal comes as Egypt continues implementing reforms linked to its multibillion-dollar programme with the IMF, which has repeatedly stressed the need to reduce the state's footprint in the economy and encourage greater private-sector participation.
Springborg argued the legislation moved in precisely the opposite direction.
"It is yet another slap in the face of the IMF, which continues to provide standby loans despite the fact that no meaningful privatizations of state-owned enterprises have occurred despite innumerable promises for several years and that ostensibly being a condition for the loans," he said.
"This is yet a harder slap than the promised but not delivered privatizations in that it removes what in effect is the fastest growing enterprise in Egypt from any institutional oversight and converts it in essence into the personal property of the president."
Successive IMF reviews have highlighted the importance of expanding the private sector and reducing the dominant role of state-owned enterprises in the Egyptian economy, reforms that Cairo has repeatedly pledged to pursue.
Beyond its implications for Egypt 's economic reforms, Springborg said the legislation reflected a broader restructuring of power within the Egyptian state.
"It signals another and possibly the largest step yet toward the erosion of the civilian state in favor of the presidency as well as his further consolidation of control over the two institutions upon which his power rests — the military and the General Intelligence Agency," he said.
He warned that the measure could discourage both domestic and foreign investment, except from businesses seeking political favour or privileged access to state resources.
"By so doing it will deter both domestic private and foreign direct investment except for that intended primarily to curry favor with the president, to share rents with him, or to exploit on favorable terms Egypt's natural resources, especially its hydrocarbons, other minerals, and its attractive coastlines," he said.
Springborg also suggested the legislation indicated direct presidential backing for the authority's expanding land reclamation projects in Egypt's Western Desert, warning that these relied heavily on scarce groundwater resources and could contribute to environmental degradation and growing pressure on the Nile's water quality.
The draft legislation is currently under parliamentary consideration.