How did nationalization expand Egypt’s public sector under Gamal Abdel Nasser?

Under the leadership of Gamal Abdel Nasser, Egypt significantly expanded its public sector through a series of nationalization measures aimed at reducing foreign influence and asserting state control over the economy.123

Key aspects of this expansion included:

• Financial Institutions: In 1957, all British and French banks and insurance companies were nationalized and placed under the management of Egyptian joint-stock companies. By 1960, the National Bank of Egypt and Banque Misr were nationalized, and by 1961, all remaining financial institutions were brought under state control, with operations concentrated into a few state-run commercial banks and the Central Bank of Egypt.4
• Infrastructure: In 1956, Nasser nationalized the Suez Canal, transferring it from a foreign-owned enterprise to the Suez Canal Authority to ensure that revenues would benefit Egypt, specifically to fund the Aswan High Dam.35
• Manufacturing: Beginning in the 1950s, the government nationalized most large-scale manufacturing establishments, shifting the focus toward heavy industry and state-led development.6