Canals.—The irrigation canals, which are also navigable by small craft, are of especial importance in a country where the rainfall is very slight. The Delta is intersected by numerous canals which derive their supply from four main channels. The Rayya Behera, known in its lower courses first as the Khatatba and afterwards as the Rosetta canal, follows the west bank of the Rosetta branch of the Nile and has numerous offshoots. The most important is the Mahmudia (50 m. long), which connects Alexandria with the Rosetta branch, taking a similar direction to that of the ancient canal which it succeeded. This canal supplies Alexandria with fresh water.

The Rayya Menufia, or Menuf canal, connects the two branches of the Nile and supplies water to the large number of canals in the central part of the Delta. Following the right (eastern) bank of the Damietta branch is the Rayya Tewfiki, known below Benha as the Mansuria, and below Mansura as the Fareskur, canal. This canal has many branches. Farther east are other canals, of which the most remarkable occupy in part the beds of the Tanitic and Pelusiac branches. That following the old Tanitic channel is called the canal of Al-Mo’izz, the first Fatimite caliph who ruled in Egypt, having been dug by his orders, and the latter bears the name of the canal of Abu-l-Muneggi, a Jew who executed this work, under the caliph Al-Amir, in order to water the province called the Sharkia. From this circumstance this canal is also known as the Sharkawia. From a town on its bank it is called in its lower course the Shibini canal. The superfluous water from all the Delta canals is drained off by bahrs (rivers) into the coast lakes. The Ismailia or Fresh-water canal branches from the Nile at Cairo and follows, in the main, the course of the canal which anciently joined the Nile and the Red Sea. It dates from Pharaonic times, having been begun by “Sesostris,” continued by Necho II. and by Darius Hystaspes, and at length finished by Ptolemy Philadelphus. This canal, having fallen into disrepair, was restored in the 7th century a.d. by the Arabs who conquered Egypt, but appears not long afterwards to have again become unserviceable. The existing canal was dug in 1863 to supply fresh water to the towns on the Suez Canal. Although designed for irrigation purposes, the Delta canals are also used for the transport of passengers and goods.

In Upper Egypt the most important canals are the Ibrahimia and the Bahr Yusuf (the River of Joseph). They are both on the west side of the Nile. The Ibrahimia takes its water from the Nile at Assiut, and runs south to below Beni Suef. It now supplies the Bahr Yusuf, which runs parallel with and west of the Ibrahimia, until it diverges to supply the Fayum—a distance of some 350 m. It leaves the Ibrahimia at Derut near its original point of departure from the Nile. Although the Joseph whence it takes its name is the celebrated Saladin, it is related that he merely repaired it, and it is not doubted to be of a much earlier period. Most probably it was executed under the Pharaohs. By some authorities it is believed to be a natural channel canalized. Besides supplying the canals of the Fayum with summer water, it fills many of the “basins” of Upper Egypt with water in flood time.

Manufactures and Native Industries.—Although essentially an agricultural country, Egypt possesses several manufactures. In connexion with the cotton industry there are a few mills where calico is made or oil crushed, and ginning-mills are numerous. In Upper Egypt there are a number of factories for sugar-crushing and refining, and one or two towns of the Delta possess rice mills. Flour mills are found in every part of the country, the maize and other grains being ground for home consumption. Soap-making and leather-tanning are carried on, and there are breweries at Alexandria and Cairo. The manufacture of tobacco into cigarettes, carried on largely at Alexandria and Cairo, is another important industry. Native industries include the weaving of silk, woollen, linen and cotton goods, the hand-woven silk shawls and draperies being often rich and elegant. The silk looms are chiefly at Mehallet el-Kubra, Cairo and Damietta. The Egyptians are noted for the making of pottery of the commoner kinds, especially water-jars. There is at Cairo and in other towns a considerable industry in ornamental wood and metal work, inlaying with ivory and pearl, brass trays, copper vessels, gold and silver ornaments, &c. At Cairo and in the Fayum, attar of roses and other perfumes are manufactured. Boat-building is an important trade.

Commerce.—The trade of Egypt has developed enormously since the British occupation in 1882 ensured to all classes of the community the enjoyment of the profit of their labour. The total value of the exterior trade increased in the 20 years 1882 to 1902 from £19,000,000 to £32,400,000. The wealth of Egypt lying in the cultivation of its soil, almost all the exports are agricultural produce, while the imports are mostly manufactured goods, minerals and hardware. The chief exports in order of importance are: raw cotton, cotton seed, sugar, beans, cigarettes, onions, rice and gum-arabic. The gum is not of native produce, being in transit from the Sudan. Of less importance are the exports of hides and skins, eggs, wheat and other grains, wool, quails, lentils, dates and Sudan produce in transit. The principal articles imported are: cotton goods and other textiles, coal, iron and steel, timber, tobacco, machinery, flour, alcoholic liquors, petroleum, fruits, coffee and live animals. There is an ad valorem duty of 8% on imports and of about 1% on exports. Tobacco and precious stones and metals pay heavier duties. The tobacco is imported chiefly from Turkey and Greece, is made into cigarettes in Egypt, and in this form exported to the value of about £500,000 yearly.

In comparison with cotton, all other exports are of minor account. The cotton exported, of which Great Britain takes more than half, is worth over three-fourths of the total value of goods sent abroad. Next to cotton, sugar is the most important article exported. A large proportion of the sugar manufactured is, however, consumed in the country and does not figure in the trade returns. Of the imports the largest single item is cotton goods, nearly all being sent from England. Woollen goods come chiefly from England, Austria and Germany, silk goods from France. Large quantities of ready-made clothes and fezes are imported from Austria. Iron and steel goods, machinery, locomotives, &c., come chiefly from England, Belgium and Germany, coal from England, live stock from Turkey and the Red Sea ports, coffee from Brazil, timber from Russia, Turkey and Sweden.

A British consular report (No. 3121, annual series), issued in 1904, shows that in the period 1887-1902 the import trade of Egypt nearly doubled. In the same period the proportion of imports from the United Kingdom fell from 39.63 to 36.76%. Though the percentage decreased, the value of imports from Great Britain increased in the same period from £2,500,000 to £4,500,000. In addition to imports from the United Kingdom, British possessions took 6.0% of the import trade. Next to Great Britain, Turkey had the largest share of the import trade, but it had declined in the sixteen years from 19 to 15%. France about 10%, and Austria 6.72%, came next, but their import trade was declining, while that of Germany had risen from less than 1 to over 3%, and Belgium imports from 1.74 to 4.27%.

In the same period (1887-1902) Egyptian exports to Great Britain decreased from 63.25 to 52.30%, Germany and the United States showing each an increase of over 6.0%. Exports to Germany had increased from 0.13 to 6.75%, to the United States from 0.26 to 6.70%. Exports to France had remained practically stationary at 8.0%; those to Austria had dropped from 6.3% to 4.0%, to Russia from 9.11 to 8.43%.

For the quinquennial period 1901-1905, the average annual value of the exterior trade was:—imports £17,787,296; exports £18,811,588; total £36,598,884. In 1907 the total value of the merchandise imported and exported, exclusive of transit, re-exportation and specie, was £E.54,134,000—constituting a record trade return. The value of the imports was £E.26,121,000, of the exports £E.28,013,000.

Shipping.—More than 90% of the external trade passes through the port of Alexandria. Port Said, which in consequence of its position at the northern entrance of the Suez Canal has more frequent and regular communication with Europe, is increasing in importance and is the port where mails and passengers are landed. Over 3000 ships enter and clear harbour at Alexandria every year. The total tonnage entering the port increased in the five years 1901-1905 from 2,555,259 to 3,591,281. In the same period the percentage of British shipping, which before 1900 was nearly 50, varied from 40 to 45. No other nation had more than 12% of the tonnage, Italy, France, Austria and Turkey each having 9 to 12%. The tonnage of German ships increased in the five years mentioned from 3 to 7%. In number of steamships entering the harbour Great Britain is first, with some 800 yearly, or about 50% of all steamers entering. The sailing boats entering the harbour are almost entirely Turkish. They are vessels of small tonnage.