Abstract:
On June 23rd, 2016, the United Kingdom decided to leave the European Union (EU), although it has to continue to abide by the laws and treaties of the latter until its official exit in 2018. In the meantime, the global economy is expected to undergo great changes due to the uncertainties that can result from such a decision. In turn, this may have a great effect on many parts of the world including Egypt. This study attempts to investigate the implications of Brexit on Egypt, especially from the political and economic perspectives. Before the American dollar crisis Egypt is currently witnessing, some scholars believed that Brexit could be for Egypt’s benefit. Predictions were made that in addition to cheaper imports, the departure of the UK from the EU could result in a positive effect on Egypt’s external debt as it could help the balance of payments. It might still be too early to predict the direct implications of Brexit on Egypt; especially because of the uncertainties the later is witnessing. The researcher believes, however, that Brexit can have positive consequences on Egypt, particularly if certain obstacles are overcome. Such obstacles include the shortage of the U.S. dollar and other foreign currencies in Egypt, the collapse in the industry of tourism and the shaken confidence of investors to invest. In the meantime, the major hypothesis of this paper is that the long and strong relations as well as security concerns between Egypt and the UK can ensure a stable relationship between both countries, along with the EU in the coming period. That is, more cooperation and burden sharing is required in many areas, but with special emphasis on security measures to combat terrorism, protect the Mediterranean Sea and solve the refugee crisis. Thus, it is to the vital interests of Egypt, UK and the EU that more cooperation is enhanced and consolidated in the coming period, regardless of whether the UK chooses to stay in, or exit from the EU.
