Rewritten - June 2010

Map of Egypt

Over the past decade, Egypt has received an annual US Foreign Military Assistance (FMA) allowance of US$1.3B; something that will probably continue for the foreseeable future. Egypt has used these funds to finance its military equipment modernization programs in an effort to gradually replace their aging Russian and Chinese-built equipment with US and Western-made systems. The Egyptian Navy (EN) and Coast Guard (ECG) rank behind the Army and Air Force in terms of resource allocation, thus slowing the progress of its modernization efforts. Nonetheless, the EN and ECG have improved their capabilities (past 15 years) by acquiring surplus US Navy frigates and mine countermeasures vessels (MCMVs) and German fast attack craft (FAC) in conjunction with a limited number of new construction MCMVs and patrol vessels.

For most of the past decade, the EN has attempted to acquire two new construction diesel-electric submarines and four FAC, which the Egyptians refer to as Fast Missile Craft (FMC). The FMC program originally started as a Direct Commercial Sale (DCS) with Halter Marine Inc. (a subsidiary of Friede Goldman Halter) in 1999. The DCS became a Foreign Military Sale (FMS) in early 2004 with the US Government. The DCS program with Halter Marine failed due to Friede Goldman Halter's bankruptcy in May 2001. The new owners of Halter Marine (VT Halter Marine) renegotiated a deal with the EN which culminated in a construction contract in September 2008 for three units and then a fourth in March 2010.

The Future Submarine Program will more than likely be satisfied through the acquisition of used submarines from the international market. The EN originally favored the RDM Submarines (RDMS) Moray 1400 design, however, approval for construction in a US shipyard never materialized. Other options, such as linking to the Taiwanese and Israeli submarine programs (if built in the US) seem to be slipping away as Israel decided to procure additional submarines from Germany and the Taiwanese program remains stalled. The only other real option for Egypt appears to be used vessels and recent press reporting indicates that the EN is in fact investigating its options on the used market.

The sea service also has additional requirements for LSTs and a Roll-on/Roll-off (RO/RO) ship and these programs could be satisfied in this decade (2010-2019). Due to limited funding under the US FMS program and National Fund, the EN may also fulfill these requirements from the used international market (as witnessed by US and German transfer programs).

In regards to the ECG, the sea service continues to modernize its force with the delivery of the Swiftships Protector class patrol craft in 2006, as well as its latest program (2008) for a second class of 28-Meter patrol boats. Also in 2008, the ECG began a 21-Meter patrol craft program with a total of 65 units expected. All ECG programs are funded under US FMS Programs.

Geographical Information:

Coastline: 2,450 km (1,519 miles)

Maritime Claims:

Contiguous Zone: 24nm

Continental Shelf: 200m depth or to the depth of exploitation

Exclusive Economic Zone (EEZ): 200nm

Territorial Sea: 12nm

National Capital and Defense Headquarters: Cairo

Language: Arabic (official), English and French widely understood by educated classes

Population: 80,471,869 (July 2009 Est)

Country's legal name: Arab Republic of Egypt

Type of Government: Republic

Branches of Government:

Executive Branch: Chief of State: President Mohammed Hosni Mubarak (since 14 October 1981). Head of Government: Prime Minister Ahmed Mohamed Nazif (since 09 July 2004). Cabinet: Appointed by the President.

Legislative Branch: Bicameral system consisting of the People's Assembly (Majlis al-Sha'b) (454 seats; 444 elected by popular vote and ten appointed by the President; members serve five-year terms), and the Advisory Council (Majlis al-Shura), which functions only in a consultative role (264 seats; 176 elected by popular vote and 88 appointed by the President).

Judicial Branch: Supreme Constitutional Court.

Egypt's economy was hit by a sharp downturn in tourism - a key foreign exchange and job-producing sector - following the 17 November 1997 massacre of foreign tourists at Luxor. Egypt did recover from the economic downturn of 1997 with over 6% growth in 1999 and 5% in 2000. Just when the economy was beginning to stabilize, the Egyptian economy took another hit following the terrorist attacks in the US and the subsequent War on Terrorism in 2001.

GDP growth slowed in 2002 to 3% however has reversed itself since 2003 and continues to grow at a moderate pace primarily due to the return of tourism and increased oil production (and prices). The Egyptian government expects that the GDP will continue to improve throughout the rest of the decade due to the increase in oil production and Egypt's involvement in the natural gas market.

Fiscal Year: 01 July - 30 June

The official EAF defense budget has grown from around US$4B in 2005 and will continue to grow to a projected level of US$7.1B in 2012. Considering the size of the EAF and its commitments for maintenance, operations, personnel, and procurement issues, it must be assumed that there is a stream of unofficial funding that is being used for military purposes. A lack of transparency within the EAF and the procurement system will continue to promote unofficial funding outside of the public's purview.

Since the 1979 Egyptian-Israeli peace treaty, Israel and Egypt (in that order) have been the largest recipients of Foreign Military Assistance (FMA) from the US. Throughout the 1990s and into 2008, US FMA to Egypt has averaged US$1.3B annually, and will probably continue for the foreseeable future.

Within the EAF, the EN and ECG clearly rank last in terms of resource priorities, and receive approximately only 20% of defense funding, which includes both US FMA and Egyptian National Funds.

The Egyptian Government maintains a two-track policy with regard to military procurements. Recent procurement laws increase transparency to provide openness and competition for government purchases. However, defense procurements are kept secret because of potential political ramifications, as well as national security issues.

In 1998, the government passed a new procurement law (Law 89 of 1998) in an effort to increase transparency, assure equal opportunity among bidders, and protect contractor rights. The law mandates that a bid may not be transformed into a tender (a main defect of a prior law dating from 1983); that decisions on bids are to be explained in writing; and more weight will be accorded to technical considerations in awarding contracts. The law also required the immediate return of bid bonds and other guarantees once the tender is awarded. Egypt is not a signatory to the World Trade Organization (WTO) Government Procurement Agreement. Analysis of Law 89 indicates that it violates the "national treatment" clause of the general principles of the WTO.

Defense procurements will, in effect, remain secret for the foreseeable future. Since 1972, the Egyptian President has been allowed to make defense and security-related decisions without parliamentary review. These decisions include the right to make arms purchases and to keep the defense budget classified. Elements within the Egyptian Parliament have called for greater openness in defense procurements, but the government has maintained that arms deals must be kept secret because of political ramifications.

Most of Egypt's defense procurements are made using the US$1.3B received annually in FMA from the US. As a result, since the US Government has told Egypt that it will not approve the use of its FMA funds to finance non-American content in weapon systems, Egypt has been driven to acquire US systems. Non-US acquisitions require funding from the general defense budget (National Funds), which is primarily committed to funding personnel, operations and maintenance, and other non-procurement expenses. As a result of the closed character of the Egyptian defense procurement process, a local representative is needed to assist in gaining access to potential procurements.

From the 1950s through the 1970s, Egypt received most of its military equipment from the Soviet Union, and large amounts of ex-Soviet equipment remains in the Egyptian inventory, as well as several units of Chinese origin. However, as part of the 1979 peace treaty between Egypt and Israel, the US agreed to help shift Egypt from Soviet to Western (mostly US) arms. Egypt has retained some military ties with Russia, if for no other reason than to maintain a logistic and repair source for its Soviet-made equipment.

Egypt is a member of the Arab League and is a leading voice among moderate Islamic states. Egypt is also a member of the Non-Aligned Movement (NAM), the United Nations (UN), and many of its affiliate organizations.

Since signing the Camp David Peace Accords with Israel in 1979, Egypt has developed and maintained close relations with the US. Currently, US Foreign Military Assistance (FMA) funding support for Egypt totals US$1.3B annually, and as a result, much of the Egyptian military is now armed with US-made equipment. The US and Egypt conduct frequent military exercises and consult regularly at the highest government levels.

Since the mid-1980s, Egypt has continued to expand its relations with Western European, African, and Middle Eastern nations. Egypt views itself as a stabilizing force in the Middle East, and maintains government and military relations with many nations in the Middle East and North Africa. As a moderate Arab nation, Egypt is at odds with fundamentalist states such as Iran and the Sudan due to their support of terrorist and other extremist groups.

Egypt increasingly sees itself as a major player in maintaining regional stability. As a strategic partner with the US, Egypt also maintains military relationships with the UK, France, Italy, China, and most African and Middle Eastern nations. It supported the international response to Iraq's invasion of Kuwait in August of 1990; and continues to support UN peacekeeping efforts as well as limited support on the International War on Terror that began in 2001.

Egyptian defense policy seeks to develop and maintain a military force capable of deterring regional aggression and terrorism and better able to participate in regional collective security and peacekeeping operations. The Egyptian Armed Forces (EAF) are an important element in Egypt's national security policy and have the following roles:

• Prevent war and contribute to the stability and peaceful development in the region.
• Protect the sovereignty of all territories and territorial boundaries within its international borders.
• Maintain the integrity, security, and stability of the country.
• Defend itself against any act of aggression.

Mohammed Hosni Mubarak serves as both the President of the Arab Republic of Egypt and the Supreme Commander of the Armed Forces. As Supreme Commander, President Mubarak presides over the National Defense Council, which is the chief policy-making body within the armed forces. Reporting to the President is the Minister of Defense and Military Production, who is also double-hatted as Commander-in-Chief of the Armed Forces. The Minister of Defense/Commander-in-Chief of the Armed Forces is responsible for the national security of Egypt. Subordinate to the Minister of Defense is the Chief of Staff of the Armed Forces, who also serves as the Commander of the Army. The Chief of

Staff exercises operational and administrative control of the Army, Air Force, Air Defense Force, and Navy (includes Coast Guard).

The Egyptian Armed Forces (EAF) consists of approximately 421,000 active duty personnel, including:

• 300,000 in the Army.
• 16,000 in the Navy (including 2,000 in the Coast Guard).
• 25,000 in the Air Force.
• 80,000 in the Air Defense Command.

Approximately 360,000 reserve personnel support the active duty forces, including:

• 320,000 in the Army.
• 20,000 in the Navy.
• 20,000 in the Air Force.

Approximately 300,000 paramilitary personnel serve in the National Guard, Security Forces, and Frontier Corps.

The Egyptian Navy (EN) is commanded by the Commander in Chief of the Naval Forces, and is organized into two command authorities:

• Chief of Naval Staff
• Chief of Operations

The fleet is commanded by the Chief of Operations, and is divided between the Mediterranean and the Red Sea. Forces operating in the Mediterranean are headquartered in Alexandria, and those in the Red Sea at Hurghada. The Egyptian fleet consists of one hundred two ships and craft, and ten naval helicopters. The fleet operates from installations in Alexandria, Port Said, Mers Matru, Abu Qir, Suez, Safaqa, and Hurghada. The EN also maintains two artillery brigades consisting of 100, 130 and 152mm guns as well as three Otomat truck-mounted surface-to-surface missile (SSM) batteries.

The Coast Guard is a paramilitary force and is directly subordinated to the EN. It consists of one hundred six ships and craft.

Since World War II, Israel has been Egypt's primary threat; however, since peace was reached with Israel in 1979, Egypt has viewed its primary threat as that posed by militant Islamic fundamentalist regimes - primarily Iran and the Sudan. As a result, the EN views Iran's acquisition of three Russian-built Kilo class submarines as a significant threat to maritime commerce transiting to/from the Suez Canal. Similarly, although now at peace with Israel, Egypt is also concerned with Israel's acquisition of modern submarines and large surface combatants.

The EN and ECG are responsible for executing the following missions:

• Defend the territorial integrity of the nation by:

- Ensuring maritime sovereignty.

- Maintaining control of the 1,519 miles (2,450km) of coastline.

- Defending Egypt's sea lines of communications (SLOCs).

- Maritime defense of the Suez Canal and its approaches.

• Naval power projection to:

- Operate against militant regimes in the Red Sea and Arabian Gulf.

- Operate in the Mediterranean and Red Sea to preserve regional security.

• Support for ground operations by:

- Protecting the Army's seaward flank from hostile naval and amphibious operations.

- Naval gunfire support.

- Tactical amphibious assaults.

- Maritime military transport.

• Deter economic threats through:

- Fisheries protection.

- Smuggling prevention.

The Egyptian Navy currently consists of one hundred six ships and craft:

• Four Improved Romeo (Type 33) class submarines.
• Six frigates:

Four Mubarak (Oliver Hazard Perry) class.

Two Knox class.

• Four corvettes:

Two Descubierta class.

Two Jianghu I class.

• Twenty-six missile-equipped Fast Attack Craft (FAC) (Plus four Ambassador Class Authorized):

Five Osa I (Type 205) class.

Six Ramadan class.

Six October class.

Four Hegu class.

Five Tiger (Type 148) class.

• Seventeen gun-equipped FAC:

Five Shershen class.

Four Shanghai II class.

Eight Hainan class.

• Three Polnochny A class landing ships, medium (LSMs).
• Nine Vydra class landing craft, utility (LCU).
• Six Seafox class landing craft, assault (LCA).
• Twelve mine countermeasures vessels (MCMVs):

Three T-43 class fleet minesweepers (MSFs).

Four Yurka class fleet minesweepers (MSFs).

Three Swiftships coastal mine hunters (MHCs).

Two Swiftships route survey vessels (MSIs).

• Nineteen miscellaneous auxiliary ships.

The Egyptian Coast Guard (ECG) currently consists of one hundred six ships and craft.

• Thirty-five patrol boats:

Twenty-one Timsah class.

Nine Swiftships 93ft class.

Five Nisr class.

• Seventy-one patrol craft:

Nine Type 83 class.

Six Crestitalia 70ft class.

Twelve Spectre class.

Twelve Petersen class.

Twenty-nine DC class.

Three Swift Protector class.

The majority of Egypt's future military equipment will derive from the US under FMS, direct commercial sales (DCS), and excess defense article (EDA) programs. A secondary source will be from Western Europe, primarily the UK, France, and Germany. In regards to indigenous construction, Egypt has several shipyards that are capable of constructing large surface combatants. However, they will require modification and training to construct these types of vessels. In regards to smaller patrol vessels, Egypt is building several classes at several of its shipyards with assistance.

Major shipyards are listed as follows:

• Alexandria Shipyard: Located in Alexandria, facilities include two building berths 180m (590.4ft) x 28m (91.6ft), with a maximum capacity of 38,500dwt. The shipyard builds commercial multi-purpose vessels, Roll-on/Roll-off (RO/RO) vessels, bulk carriers, and has the capability for construction of glass reinforced plastic (GRP) vessels up to 20m (65.6ft); has four slipways for vessels up to 1,000dwt (repairs), two graving docks for vessels up to 85,000dwt, and one-repair quay 1,200m (3936.9ft) in length. Alexandria Shipyard can be reached as follows:

Alexandria Shipyard

Gate No.36, Kabbary

Alexandria 21553

Egypt

Tel: + 20 03 440 3090

Fax: + 20 03 440 4672

• Canal Naval Constructions Company: Located in Alexandria, facilities include three building berths; one 75m (246ft) in length, and two 25m (82ft) in length with a capacity of 2,000dwt; one ship-lift with a 750 ton capacity, and repair quays totaling 75m (246ft) in length, with a maximum draught of 3m (9.8ft). The company builds and repairs commercial vessels, including tugs, barges, floating hotels, service boats, tankers, floating cranes, and dredgers. Canal Naval Constructions Company can be reached as follows:

Canal Naval Constructions Company

Port Fouad Custom Gate No. 57

Port Said, Egypt

Tel: + 20 66 400 598

Fax: + 20 66 400 601

• Egyptian Shipbuilding & Repair Co: Facilities include: eight building berths (maximum 102m [334.6ft] x 66m [216.5 ft]), one floating dock (152m [498.6ft] x 23m [75.4ft] with a lifting capacity of 6,000 tons), and repair quays totaling 480m (1574.7ft) in length for a maximum draught of 5m (16.4ft). The company constructs service vessels, tugs, ferries, and fishing vessels. Egyptian Shipbuilding & Repair Co can be reached as follows:

Egyptian Shipbuilding & Repair Co

Customs Area, Ras El-Tin

Alexandria, Egypt

Tel: + 20 3 803 588

Fax: + 20 3 802 808

• Port Said Engineering Works Co: Located in Ras El-Tin, facilities include one 1,500-ton slipway and seven 500-ton slipways. Currently, the company is constructing tugs; research, fishing, and anti-pollution vessels; barges; dredgers, and GRP hull vessels. Port Said Engineering Works Co can be reached as follows:

Port Said Engineering Works Co.

PO Box 170 Palestine and El Shohada Streets

Port Said, Egypt

Tel: + 20 66 240 387, + 20 66 240 845

• Port Said Shipyard: Located in Port Fouad, facilities include one building berth, 150m (492.1ft) in length and a maximum capacity of 12,000dwt; four floating docks, one 230m (754.5ft) x 35m (114.8ft) x 9.7m (31.8ft) maximum capacity 25,000dwt, one 185m (606.9ft) x 28m (91.8ft) x 8.3m (27.2ft) maximum capacity 10,000dwt, one 120m (393.6ft) x 21.5m (70.5ft) x 6m (19.6ft) maximum capacity 5,000dwt, and one 182m (597.1ft) x 78m (255.9ft) x 7.9m (25.9ft) maximum capacity 17,000dwt; and repair quays totaling 1,200m (3936.9ft) in length with a maximum draught of 6m (19.6ft). The shipyard builds general cargo vessels, RO/RO vessels, dredgers, and tugs. Port Said Shipyard can be reached as follows:

Port Said Shipyard

Port Fouad, Port Said

Egypt

Tel: + 20 66 400 339

Fax: + 20 66 400 324

• Timsah Shipbuilding Co: Located in Timsah, facilities include two building berths 200m (656.1ft) in length. Currently, the company builds harbor tugs, barges, floating pontoons, and dredgers. Timsha Shipbuilding Co can be reached as follows:

Timsah Shipbuilding Co

1 El Warsha Street, PO Box 126

Ismailia, Egypt

Tel: + 20 64 320 290

Fax: + 20 64 327 353

• Egyptian Navy Shipyard: Located in Ras El-Tin, facilities include eight repair piers with a length of 150m (492.12 ft) and maximum depth of 8.5m (27.8ft), and a ship-lift with a 5000 ton capacity. The EN and ECG can repair and maintain up to 90% of their units at this shipyard.

Over the past decade, the EN has made modest progress in its replacement of obsolete Russian and Chinese-made ships and systems with Western equivalents. To acquire modern surface vessels and submarines, the EN has pursued both surplus (second hand ships) and new construction options. Since the 1990s, the EN has taken delivery of six ex-US Navy frigates (two Knox and four Perry class), five ex-German Navy Tiger class FAC, seven coastal mine hunters (MHCs), two route survey vessels (MSIs) and additional new construction Dolphin class swimmer delivery vehicles (SDV-Xs). The following projects are underway, planned or projected by the EN:

• Ambassador III Class Fast Attack Craft (FAC): Planning for the Ambassador III class FAC began in the mid-1990s. By the early 2000s, VT Halter Marine was selected for the design and construction of three vessels under this class. Phase I of development was completed in 2006 while Phase II was started in September 2008 which included the construction of three vessels. In March 2010, a fourth unit was authorized and contracted for. The vessels are expected to enter the EN by 2014. In May 2010, AMI's source indicated that two additional units were being discussed by the EN.

• Dolphin Class Swimmer Delivery Vehicle - X (SDV-X): The EN began planning for a new class of SDV in the 1990s. It is AMI's assessment that the US based Columbia Research Corporation was selected for the design and construction of 36 vessels. Due to the secretive nature of the project it is estimated that all vessels have been delivered to the EN as of 2009. This will be the final report for this project.

• Future Tank Landing Ship (LST): The EN's three Polnochny class medium landing ships (LSMs) are at the end of their effective service lives, and need replacement. Additionally, the EN would like to procure a larger longer-range amphibious vessel for increased amphibious lift. It seems likely that the EN will delay this procurement until sometime after 2011. If US Foreign Military Assistance (FMA) funding is still available at that time, Egypt could go with a US supplier (possibly Northrop Grumman Ingalls with a variant of its Multi-purpose Amphibian [MPA] design). Alternatively, Egypt could use national funds and procure new construction amphibious vessels from other foreign sources (e.g. Singapore Technologies Marine with its Endurance class design or Elefsis Shipyards with its Jason class design). The most likely course of action is probably a new class procured under a US FMS program, with planning starting around 2011, and a construction contract award around 2015.

• Future Roll-on/Roll-off (RO/RO) Ship: The EN has a long-term requirement for a multi-purpose vessel; however, other naval programs have taken priority. It is most likely that this program will not begin conceptualization until after 2013.

* FOC RfP is the First of Class Request for Proposal.

* Please be advised that the Key Defense Organization Personalities may have been changed since this report was published.

Field Marshal Mohammed Hussein Tantawi Sulayman

Minister of Defense & Military Production/Commander-in-Chief of the Armed Forces

Ministry of Defense

23^rd July Street

Kobri Al-Kobba

Cairo, Egypt

Tel: + 20 2 839 933, + 20 2 837 133

Lieutenant General Sami Hafez Anan

Chief of Staff of the Armed Forces/Commander-in-Chief of the Army

Ministry of Defense

23^rd July Street

Kobri Al-Kobba

Cairo, Egypt

Tel: + 20 2 839 933, + 20 2 837 133

Lt. Gen. Mohab Mamish

Commander in Chief of the Egyptian Navy

Egyptian Naval Headquarters

Ras El-Tin Naval Base

Alexandria, Egypt

Rear Admiral Mostafa Mohamed Ezz Eldin Wahba

Chief of Naval Staff

Egyptian Naval Headquarters

Ras El-Tin Naval Base

Alexandria, Egypt

Mr. Sayed Meshal

Minister of State for Military Production

Ministry of Defense

23^rd July Street

Kobri Al-Kobba

Cairo, Egypt

Tel: + 20 2 605 460, + 20 2 835 716