Military Industry of Egypt

The arms industry of Egypt constitutes one of the most extensive and diversified defence industrial bases in the Middle East and Africa. It serves the dual objectives of ensuring national military self-sufficiency and supporting Egypt’s strategic ambition to emerge as a regional exporter of defence equipment. Rooted in a long historical tradition of military manufacturing, Egypt’s defence sector today encompasses small arms, ammunition, armoured vehicles, artillery systems, missiles, naval vessels, aircraft components, electronics, and unmanned systems. Production is largely coordinated through state-owned institutions, complemented in recent years by a growing private defence sector.

Historical background

Egypt’s military-industrial tradition dates back to the early nineteenth century under Muhammad Ali of Egypt, who initiated the establishment of factories to support the creation of a modern standing army. These early efforts included the manufacture of muskets, cannons, and ammunition in Cairo, alongside the construction of shipyards in Alexandria to build warships for a domestic navy. By the late 1830s, Egypt was producing large numbers of firearms and had constructed several capital ships, reflecting an unusually advanced industrial base for the region at the time.
Following the Second World War, Egypt acquired vast stocks of surplus Axis weaponry, including German small arms and ammunition. This inheritance directly influenced domestic production, leading to the manufacture of the Hakim Rifle, derived from the Swedish Ag m/42 but adapted to fire 7.92×57 mm Mauser ammunition. Egypt also produced the Rasheed Carbine, chambered in 7.62×39 mm, before transitioning in the 1960s to licensed production of the AK-47. These programmes laid the technical foundations for modern Egyptian small-arms manufacturing.
The modern defence industry took shape during the presidency of Gamal Abdel Nasser in the 1950s and 1960s. Driven by geopolitical conflict and economic nationalism, Egypt pursued import-substituting industrialisation with the aim of achieving strategic autonomy in armaments. During this period, Egypt invested in missile research, established the Jabal Hamzah test facility, and developed early short-range ballistic missile projects such as Al Zafir and Al Kaher.

Institutional structure and governance

Egypt’s defence industrial ecosystem is primarily overseen by the Ministry of Military Production, which manages a large network of military factories and affiliated companies. These facilities are responsible for producing ammunition, artillery systems, armoured vehicles, and a wide range of support equipment. Key entities under the ministry include Abu Zaabal Specialized Industries, which focuses on small arms and ammunition, and Abu Zaabal Engineering Industries, which manufactures artillery shells and heavy weapon components.
A second pillar of the sector is the Arab Organization for Industrialization (AOI), a state-owned defence conglomerate established to consolidate Egypt’s military manufacturing capabilities. AOI supervises numerous subsidiaries operating across aerospace, electronics, armoured vehicles, and armaments, and has been instrumental in fostering international joint ventures.

Armoured vehicles and land systems

Armoured vehicle production represents a core strength of Egypt’s defence industry. The Armoured Production and Repair Factory plays a central role in assembling, maintaining, and upgrading main battle tanks and self-propelled artillery. Egypt locally assembles the M1A1 Abrams under licence and participates in the production and maintenance of systems such as the K9 Thunder self-propelled howitzer.
In parallel, Egypt has developed indigenous armoured platforms, including the RAAD 200 and SENA 200 armoured vehicles. The Kader Factory for Developed Industries, operating under AOI, designs and manufactures a range of wheeled armoured vehicles, including mine-resistant ambush-protected (MRAP) vehicles intended for counter-insurgency and internal security operations. These platforms reflect Egypt’s emphasis on adapting locally produced systems to regional operational environments.

Aerospace and missile development

Egypt’s ambitions in military aviation reached their peak during the 1960s with the Helwan HA-300 interceptor programme. Designed by Willy Messerschmitt, the HA-300 was a supersonic delta-wing aircraft intended to provide Egypt with an indigenous high-performance fighter. Although three prototypes were built and flight-tested, the programme was cancelled in 1969 due to cost, technical difficulties, and shifting strategic priorities. Despite its failure, the project remains a landmark in Egypt’s aerospace history.
Subsequently, Egypt focused on licensed production and assembly of trainer and light combat aircraft. Facilities in Helwan produced aircraft such as the Alpha Jet and the K-8E Karakorum, contributing to pilot training and light strike capabilities. In recent years, Egypt has explored replacing older platforms with more advanced trainers such as the KAI T-50 Golden Eagle.
Missile and rocket production has been spearheaded by Sakr for Developed Industries, another AOI subsidiary. Sakr produces rockets, missiles, and associated munitions, supporting both domestic requirements and export markets.

Naval construction and shipbuilding

Naval defence production is centred on the Alexandria Shipyard, which has evolved into one of the most capable shipbuilding facilities in the region. The shipyard constructs patrol boats, corvettes, and frigates for the Egyptian Navy. International partnerships have played a decisive role, particularly collaboration with France’s Naval Group for the local construction of Gowind-class corvettes and with Germany’s ThyssenKrupp Marine Systems for the manufacture of MEKO 200 frigates. These projects have enhanced Egypt’s technological transfer and shipbuilding expertise.

Electronics, optics, and communications

The electronics sector has expanded significantly, reflecting the growing importance of command, control, communications, and intelligence systems. Thales Benha Electronics SAE, a joint venture between France’s Thales Group and Benha Electronics, specialises in advanced communications, signalling, and defence electronics. The venture also contributes to research, development, and technical training, strengthening Egypt’s human capital in high-technology defence fields.
Arab International Optronics supports domestic production of optical systems, including sights and sensors, which are critical components for modern weapon platforms.

Role of the private sector and unmanned systems

In recent years, private Egyptian defence companies have emerged as important innovators. Robotics Engineering Systems focuses on unmanned aerial vehicles, surveillance platforms, and precision-guided munitions, including glide bombs and guided missiles with multimode guidance. Amstone specialises in fifth-generation defence technologies, particularly naval and aerial unmanned systems. These firms reflect a gradual diversification of Egypt’s defence industrial base beyond traditional state monopolies.

International cooperation and exports

Egypt’s arms industry is characterised by extensive international cooperation. The country maintains co-production agreements and technical partnerships with the United States, France, Germany, Russia, China, South Korea, the United Kingdom, Finland, and South Africa. These relationships have enabled technology transfer in areas such as tank guns, howitzers, anti-aircraft systems, communications equipment, and optics.
Egypt has also participated in international arms supply networks, notably during the Soviet–Afghan War, when it produced ammunition and weapons for covert operations. In the contemporary period, arms exports have become an explicit policy objective, supported by industrial modernisation programmes and showcased at events such as the Egypt Defence Expo (EDEX).