Relying largely on external rents, the Egyptian state became independent
of the domestic economy, apart from the internal rent-generating sectors.
This led to neglect of the domestic economy, so that little investment was
made for modernization of the old industries to render their products
competitive on the world market. This applies in particular to the textile
industry, in which Egypt possesses comparative advantages (high-quality
cotton, cheap skilled labour, a huge inland market). As a rentier state Egypt
follows a policy of import and consumption rather than of investment and
development, which requires greater effort.