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Egypt’s Prime Minister Warns of a Shift to “War Economy” If Regional Conflict Erupts

Egypt’s Prime Minister, Mostafa Madbouly, has issued a stark warning that the country may be forced to adopt a “war economy” if a regional conflict were to break out. Speaking during a high-level government briefing, Madbouly highlighted the volatile geopolitical landscape in the Middle East and North Africa, noting the potential impacts on Egypt’s economy and national security.

The Prime Minister emphasized that while Egypt remains committed to peace and regional stability, ongoing tensions in neighboring countries could quickly escalate into a broader conflict. In such a scenario, Egypt would need to prioritize national defense and security, redirecting significant resources away from civilian projects to military expenditures.

Madbouly outlined how this shift to a war economy would involve reallocating the national budget to strengthen the country’s defense capabilities, increase military production, and ensure the sustainability of essential services in times of crisis. This would likely impact ongoing development projects, social programs, and infrastructure investments that have been central to Egypt’s economic growth strategy in recent years.

He also stressed the importance of international cooperation in preventing regional conflicts, urging diplomatic solutions and collective security efforts. Egypt’s strategic position as a gateway between Africa and the Middle East makes it vulnerable to disruptions in trade routes and energy supplies, further complicating the economic outlook in the event of war.

The Prime Minister’s remarks come amid growing concerns over tensions in the region, particularly in Sudan, Libya, and ongoing conflicts in the broader Middle East. Egyptian authorities continue to monitor the situation closely, balancing between bolstering defense preparedness and maintaining the country’s developmental goals.

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