The article traces the evolution of Egypt’s defence-industrial policy after 2013, when the partial freeze of U.S. military aid pushed Cairo toward a multi-vector diversification strategy. Two distinct phases are identified: (1) 2014-2020, characterised by extensive imports of major platforms financed through concessional loans from Russia and EU countries; and (2) from 2021, marked by an intensive focus on localisation, offset agreements and partnerships with European and Asian suppliers. While diversification has enhanced Egypt’s bargaining flexibility, it has not eliminated dependence on critical foreign components and has heightened competition between defence spending and social obligations. The study demonstrates that political-strategic motives for reducing reliance on the United States intersect with patronage-based resource distribution and fiscal constraints, entrenching the military’s dominance in the economy, complicating access to advanced technologies and shrinking the funding base for civilian programmes. This configuration sustains a persistent trade-off between security priorities and socio-economic development.