Egypt Parliament Authorizes Military Support for Saudi Arabia Amid Economic Pressures

Egypt's parliament voted to give President Abdel-Fattah el-Sisi authority to take "necessary measures" to help defend Saudi Arabia against Houthi missile and drone attacks, after two postponements of the vote. A small number of lawmakers abstained, citing a lack of detail on the mission's scope, cost and troop commitments.

The move follows Saudi Arabia's deposits of roughly $10.3 billion in Egypt's central bank, which together with funds from Kuwait and Qatar total about $18 billion, close to one-third of Egypt's foreign-currency reserves. Egypt relies on these reserves to finance imports of wheat and fuel and to service debt that consumes about 64 % of the current budget.

Historically, Egypt has avoided involvement in Yemen, but recent Gulf expectations of loyalty have prompted limited military assistance, such as the deployment of Rafale fighters to the United Arab Emirates after Iranian missile strikes.

Saudi Crown Prince Mohammad bin Salman visited Cairo in September and discussed the Houthi threat. Egypt's response framed Saudi security as part of its national security, while also calling for a political settlement in Yemen. The parliament's recent authorization emphasizes a defensive role and excludes offensive actions in Yemen, a stance echoed by foreign minister Badr Abdelatty, who said "all opportunities for reaching political solutions must be explored."

The Red Sea and Suez Canal, which generated $10.2 billion in 2023, have seen reduced traffic due to Houthi attacks, lowering canal revenues to about $4 billion in 2024. The Houthis' control of the Bab al-Mandeb Strait threatens further disruptions. Egypt has opened diplomatic channels with the Houthis to urge restraint and keep the strait open, though its leverage remains limited.

Egypt is also monitoring broader regional tensions, maintaining contacts with Iran, the United States and other states to avoid escalation. The country faces direct security risks, including a July drone strike on a gas terminal at Damietta port, and remains concerned about potential impacts on its energy imports, budget and remittance flows from the 1.25 million Egyptians working in Saudi Arabia.