A crowded street in Khan El Khalili Bazaar in Cairo, the Egyptian capital, where about a fifth of the population live. Alamy
A crowded street in Khan El Khalili Bazaar in Cairo, the Egyptian capital, where about a fifth of the population live. Alamy
A crowded street in Khan El Khalili Bazaar in Cairo, the Egyptian capital, where about a fifth of the population live. Alamy
A crowded street in Khan El Khalili Bazaar in Cairo, the Egyptian capital, where about a fifth of the population live. Alamy

Booming birth rate is giving Egypt growing pains


Kamal Tabikha
  • English
  • Arabic

Egypt's population rose by one million to 104 million in just 221 days, officials announced on Saturday, underlining government warnings that the country's high birth rate is one of the most serious obstacles to progress.

On Tuesday, Housing Minister Asem El Gazzar said Egypt needs to build 600,000 homes every year to keep up with the population, after spending about 1.1 trillion Egyptian pounds (about $56 billion) on housing projects over the past 10 years.

Although the government has succeeded in reducing the birth rate from 3.5 per woman (which translates to 35 children for every 10 women) in 2014 to 2.8 in 2021, it says this is still far short of what is needed.

“The state has been facing some of its most serious challenges as it endeavours to put a cap on the population increase. When you have a country with a GDP like ours and such a large population, the state is inevitably going to struggle to develop no matter how hard it tries,” says Dr Hoda El Mallah, an economist at Egypt’s Urban Planning Authority.

While most experts agree that Egypt’s population growth is simply too high for a country of its resources and inhabitable area, some say part of the problem is a policy aimed at reducing the birth rate while neglecting to invest enough in education and job creation to boost the economy.

But President Abdel Fattah El Sisi, at a meeting of the National Family Development project earlier this year, said overpopulation was one of the main challenges the country faced in developing various sectors, particularly education, which he admitted was below par because of a lack of funds.

New school year begins in Egypt — in pictures

Dr El Mallah says Egypt’s population growth, the fourth-highest in the Mena region, is driven by a number of factors that are difficult to change.

Among the main reasons are strongly held traditional beliefs and practices, particularly in rural provinces, and chief among these is the tendency to marry young, which is often encouraged by parents.

“When couples marry so young at their parents' behest, they don’t really think their marriage through and what you end up with is young couples having several children pretty quickly before they realise that they might not be able to handle the financial pressures of having a large family,” she says.

Being a patriarchal society, families in Egypt often favour having sons over daughters, which causes them to keep trying for a boy even after they’ve had one or two girls, Dr El Mallah says.

Poverty is another driver of population growth, she says.

The provinces with the highest birth rates in 2021 were Assiut, Minya, Qena and Sohag, which are also some of the poorest and most rural.

“For many Egyptian families, having many children ensures a steady stream of income into the household and as things continue to get more expensive, families often find it difficult to make ends meet, which in turn makes them have more children to share the load.”

Nana Aboelseoud, a reproductive rights researcher, says another motivation for parents to have large families is to ensure they have support when they are too old to work or to take care of themselves.

She says the government's population control programmes, such as the China-inspired "Two Is Enough" scheme launched in 2018 that offered financial incentives to couples who had only two children, often lack the cultural sensitivity needed to communicate across the country's 27 provinces, whose social dynamics are often vastly different.

A lot of these [population control] programmes are devised by organisers in Cairo about areas that they don’t know much about
Nana Aboelseoud,
reproductive rights researcher

“A lot of these programmes are devised by organisers in Cairo about areas that they don’t know much about,” she says.

“Every province comes with its own unique set of challenges. In North Sinai, for instance, women might not be responsive to population control campaigns because there are few female gynaecologists available there to educate them and they are too modest to see a male doctor. In another area, women don’t have the necessary funds to cover their transportation costs to visit a doctor and receive birth control or consultations.”

Another problem is the reliance on foreign funding. A 2021 report by the Egyptian Initiative for Personal Rights, for whom Ms Aboelseoud has written reports, concluded that Egypt does not spend any of its budget on population control initiatives and that these are funded by EU and US-based aid programmes.

Ms Aboelseoud says that the donor's agenda plays a significant role in foreign-funded programmes, so they focus on accomplishing the vision of the countries or institutions that pay for them at the expense of the benefit to Egyptians.

"What you end up with are rigid programmes that expect participants to do a certain thing or behave in a certain way and any questions or problems they may have that are unrelated to the strict agenda of the programme are ignored. This results in many not benefiting from the programme at all," she says.

And because programme implementation is often hasty, they lack proper evaluation.

"Sometimes these programmes work really well, as was the case with Port Said, for instance, which brought its birth rate down significantly in the last 10 years," Ms Aboelseoud says.

"What is missing are efforts to outline what exactly worked in Port Said so that it can be reapplied somewhere else.

"The government does not do this, which has hindered its larger efforts to control the population greatly. There is a mismanagement of the available resources that needs to be corrected."

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Name: Infinite8

Based: Dubai

Launch year: 2017

Number of employees: 90

Sector: Online gaming industry

Funding: $1.2m from a UAE angel investor

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Started: January 2021 

Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani 

Based: UAE 

Number of employees: 140 

Sector: B2B Vertical SaaS(software as a service) 

Investment: $5.2 million 

Funding stage: Seed round 

Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office  

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If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Six large-scale objects on show
  • Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
  • The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
  • A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
  • Frank Lloyd Wright’s 1930s Kaufmann Office
  • A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
  • Torrijos Palace dome
The specs: 2019 Chevrolet Bolt EV

Price, base: Dh138,000 (estimate)
Engine: 60kWh battery
Transmission: Single-speed Electronic Precision Shift
Power: 204hp
Torque: 360Nm
​​​​​​​Range: 520km (claimed)

TOP 5 DRIVERS 2019

1 Lewis Hamilton, Mercedes, 10 wins 387 points

2 Valtteri Bottas, Mercedes, 4 wins, 314 points

3 Max Verstappen, Red Bull, 3 wins, 260 points

4 Charles Leclerc, Ferrari, 2 wins, 249 points

5 Sebastian Vettel, Ferrari, 1 win, 230 points

How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
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  • Only invest in crypto projects that you fully understand.
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The specs: 2018 Maserati Levante S

Price, base / as tested: Dh409,000 / Dh467,000

Engine: 3.0-litre V6

Transmission: Eight-speed automatic

Power: 430hp @ 5,750rpm

Torque: 580Nm @ 4,500rpm

Fuel economy, combined: 10.9L / 100km

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Updated: October 07, 2022, 6:00 PM