Cotton, Finance and Business Networks in a globalised World: The Case of Egypt during the First Half of the Twentieth Century Thesis submitted for the degree of Doctor of Philosophy International Business & Strategy, Henley Business School Akram Beniamin November 2019 Declaration I confirm that this is my own work and the use of all material from other sources has been properly and fully acknowledged. Akram Beniamin i Abstract Firms and entrepreneurs were key drivers of the globalisation of the late nineteenth and early twentieth centuries. This thesis investigates commodity networks, foreign banking and business networks, as three manifestations of the first global economy, in Egypt. The country was integrated into the world economy by exporting cotton, importing foreign capital, and hosting a large foreign community. The thesis shows that the Egyptian cotton network was sophisticated as market participants were spatially dispersed. The network was instrumentally coordinated by foreign banks that provided the crucial functions of intermediating the flows of cotton, finance, and information. Departing from the literature that portrays foreign banks in developing countries as manifestations of imperialism and exploitation of host countries, the thesis demonstrates that the history of these banks in Egypt does not conform to this rhetoric. The case of the Ionian Bank reveals that foreign banks in Egypt were businesses that sought profits and faced many risks and challenges. Some risks were uncontrollable and negatively affected banks’ performance, which was shaped by trade-off between opportunity and risk appetite. The analysis of the interlocking directorates of the Egyptian corporate and elite networks demonstrates that these networks, predominantly controlled by local foreigners, served as a basis for coordinating and maintaining collective interests. The structure of the elite network presumably fostered entrepreneurial activities that were funded by foreign capital. The analysis documents the gradual rise of indigenous entrepreneurs at the expense of local foreigners. The study demonstrates how Egypt’s integration into the first modern globalisation was facilitated by foreign firms and entrepreneurs. It points out the need to revise the historiography of foreign capital and foreigners in Egypt during this period. In addition, the thesis contributes to the limited business history scholarship on the Middle East and furthers our understanding of the complex nature of globalisation. ii Acknowledgements Debts have accumulated over the course of researching and writing this thesis. Above all, I acknowledge God’s goodness in providing me the opportunity, strength and physical resources to pursue a PhD. My greatest debt of gratitude goes to my supervisors, Professor Mark Casson and Professor Lucy Newton who taught me what historical research really is. Their support, generosity, and kindness have gone far beyond their call of duty. Mark Casson has guided me in thinking about where my research fits within the larger picture of history, and he has pointed me towards critical questions that have intellectually challenged me. He has been a role model for me; his knowledge, sharp mind and dedication to the new generation of researchers are extremely remarkable. Lucy Newton has shaped my research skills in many ways and has always been available and willing to discuss and comment on my work. She has been a steady source of critical insights, guidance and encouragement all the way through. I was really lucky to have them as my supervisors, and there is no way I can thank them enough. I can only hope to emulate their qualities, and it has been an honour and a privilege to be their student. I would also like to thank my examiners, Professor Andrew Godley and Professor Youssef Cassis for their very constructive comments and suggestions that have improved the revised version of the thesis. In the course of this research, I have visited many archives and libraries. Some of them are not mentioned in the thesis but provided a very good background to my research. I am indebted to the following archivists for their valuable assistance: Anna Towlson and the staff of the LSE Library Archives and Special Collections; Dr Mike Anson and the staff of the Bank of England Archive; Karen Sampson (Lloyds Banking Group Archive); Maria Sienkiewicz and Nicholas Webb (Barclays Group Archives); Debbie Usher (The Middle East Centre Archive at St Antony's College, University of Oxford); and Nada Yassen and Stephen Urgola (The Rare Books & Special Collections Library at the American University in Cairo). I would also like to thank the staff of the British National Archives; London Metropolitan Archives; the British Library; the British Library of Political and Economic Science; the Bodleian Library at the University of Oxford; the Middle East Centre Library at St Antony's College, University of Oxford; and the New York Public Library. My PhD research has been made possible by a three-year scholarship from Henley Business School. Without this generous funding, I would not have been able to embark on my PhD. I iii am indebted to Professor James Walker, Head of International Business and Strategy, for offering me paid teaching in my fourth year. At Henley Business School, the faculty and students of the department of International Business and Strategy and of the Centre for International Business History have been excellent colleagues, offering support and friendship. I am grateful to Professor Peter Scott for reading and commenting on earlier draft chapters of the thesis. I would also like to thank Daria Radwan for outstanding administrative support. Daria is extraordinarily efficient and has made my life at Henley Business School easier. My colleague and dear friend Khaled El-Shamandi has been a source of support throughout these years. Early versions of this research were presented at several conferences: the Business History Conference (Cartagena, March 2019); Reading-UNCTAD International Business Conference (Reading, April 2019); the Association of Business Historians Conference (Sheffield, July 2019); and the Middle East Studies Association Annual Meeting (New Orleans, November 2019). I would like to thank all those who provided comments and constructive criticisms. Professor Robert Tignor at Princeton University, the late Professor Roger Owen at Harvard University, and Professor AbdelAziz EzzelArab at the American University in Cairo provided me with expert advice on sources that might be available to study the business history of modern Egypt. I am truly grateful to my family. My mother and four brothers have been unfailingly supportive. Shery, my wife, has shared in every up and down over the last years, and her tolerance of my frustrations at tough times has not been easy. She has offered me a shoulder to lean on and without her constant encouragement, support, and sacrifice this would not have happened. To Shery, my love, I am so blessed to have you in my life. Our first kid, Steve, was born less than two months before starting my PhD. The second kid, Danny, came to the world while I was in my third year into the PhD. To Shery, Steve, Danny and the soul of my father, I dedicate this thesis. Akram Beniamin Reading, November 2019 iv Table of Contents Declaration .............................................................................................................................. i Abstract .................................................................................................................................. ii Acknowledgements ............................................................................................................... iii Table of Contents ................................................................................................................... v List of Tables ...................................................................................................................... viii List of Figures ....................................................................................................................... ix List of Abbreviations & Measures ......................................................................................... x Note on Sources, Citations and Transliterations ................................................................... xi Chapter 1 Introduction ........................................................................................................... 1 1.1 Scope of the study ........................................................................................................ 1 1.2 Contributions & limitations ......................................................................................... 3 1.3 General background ..................................................................................................... 5 1.3.1 Cotton commodity networks ................................................................................. 9 1.3.2 Foreign banking .................................................................................................. 11 1.3.3 Foreigners & business networks ......................................................................... 12 1.4 Business history in Africa & the Middle East ........................................................... 13 1.5 Thesis structure .......................................................................................................... 16 1.6 Sources ......................................................................................................................