A recently released book, A Daring Enterprise: A US-Egyptian Partnership and the Case for Soft Power, chronicles the establishment of the Egyptian-American Enterprise Fund (EAEF) following Egypt’s 2011 Revolution and makes the case for investment-led development as an instrument of foreign policy.
A central message running through the book, which is co-authored by James Harmon, chairman of the EAEF, and Cornelius Queen, its senior vice president, is that private investment, rather than traditional aid, offers a stronger foundation for deepening Egyptian-US economic cooperation.
Another central message of the book is that economic opportunity is a prerequisite for political stability. Expanding access to jobs, finance, and entrepreneurship provides a more sustainable response to instability and extremism than military or security-based approaches, Harmon told Al-Ahram Weekly.
The book offers an insider’s account of Egypt’s turbulent political transition between 2011 and 2013. Harmon recounts meetings with Muslim Brotherhood leaders, senior Egyptian officials, and prominent business figures while navigating widespread political unrest, institutional uncertainty, and growing anti-American sentiment.
He describes how political instability, weak investor confidence, declining foreign-exchange reserves, falling tourism revenues, rising unemployment, and debates over subsidy reform created an exceptionally challenging environment for investment.
While political instability constrained the pace of progress in post-revolution Egypt, the authors argue that targeted investment, effective governance, and partnerships with credible domestic investors remain among the most effective tools for fostering sustainable economic growth in emerging markets.
According to Harmon, partnering with Egyptian investors has been the cornerstone of the EAEF’s success. Rather than deploying American investment teams on the ground, it relied on Egyptian fund managers to source and manage investments, a strategy that he said has consistently delivered results.
Since its establishment, the EAEF has invested in more than 150 companies across Egypt. Today, its investment portfolio supports more than 67,000 Egyptian jobs, while the estimated market value of its assets exceeds $500 million, almost double its original $300 million congressional allocation.
According to the book’s authors, these returns were achieved despite the Egyptian pound losing more than 80 per cent of its value since 2016.
“Egypt’s private sector has significant potential. But it requires long-term capital and strong relationships,” Harmon said, arguing that US development assistance and development finance institutions should continue supporting private-sector growth in Egypt.
Harmon said that Egypt’s large working-age population, strategic geographic location, and position as the Arab world’s most populous country are factors that have created a deep pool of talented entrepreneurs, investment professionals, and young skilled workers.
Egypt has demonstrated notable resilience despite multiple macroeconomic shocks, Harmon said. He commended the government’s move towards a more flexible exchange-rate regime, tighter monetary policy, and renewed commitments to reduce the state’s role in the economy and expand space for private investment.
Despite ongoing challenges, Harmon argued that Egypt’s investment case is underpinned by a population of more than 100 million people, its strategic location linking Africa, the Middle East, and Europe, improved infrastructure, deep entrepreneurial talent, and demonstrated capacity to undertake difficult macroeconomic reforms when necessary.
Looking ahead, Harmon identifies the consumer and retail industries, export-oriented businesses, import-substitution industries, and technology and digital infrastructure as the sectors offering the strongest potential for American investors.
Consumer businesses stand to benefit from Egypt’s expanding middle class, while export-oriented industries can leverage the country’s strategic location and trade agreements to serve regional and international markets. Import-substitution industries can reduce dependence on foreign currency-intensive imports, while technology and digital infrastructure can improve efficiency, connectivity, and productivity across the economy.
Beyond its economic message, the authors say the book also seeks to reshape perceptions of the US-Egypt partnership by highlighting investment and private-sector development alongside traditional security cooperation.
According to Harmon, the EAEF demonstrates that economic diplomacy can advance the interests of both countries by creating jobs, attracting investment, and contributing to the long-term stability of one of America’s key regional partners.
He noted that it has operated without additional congressional appropriations since 2018, financing its operations through interest income, dividends, and investment proceeds. In the author’s view, a self-sustaining model that advances US strategic interests while generating returns on taxpayer capital deserves greater attention from policymakers.
The US remains one of Egypt’s largest foreign investors. The US was Egypt’s second-largest source of foreign direct investment (FDI) in fiscal year 2024-2025 after the UAE, contributing $3.2 billion, or 13.8 per cent of total FDI inflows, according to the American Chamber of Commerce.
American investment spans nearly all sectors of the Egyptian economy, led by oil and gas, while non-petroleum investments had reached $2.5 billion across more than 2,100 companies by January 2026.
Harmon believe the EAEF provides a broader model for American economic engagement in emerging markets. The authors of the book argue that if the investment model promoted by the EAEF can succeed in Egypt despite political instability and repeated currency devaluations, it can succeed elsewhere.
At a time when the limits of US military power are becoming increasingly evident, they contend that enterprise funds offer an alternative form of American engagement rooted in investment, shared economic interests, and long-term partnerships.
By supporting locally led private-sector development, they argue, such funds can strengthen long-term stability while creating more durable relationships between the US and partner countries.
* A version of this article appears in print in the 25 June, 2026 edition of Al-Ahram Weekly.
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