The Egyptian revolution carries a challenging transition phase, starting out with
problems such as low foreign direct investments (FDI), a high budget deficit, a high debt
rate, a high unemployment rate, a high poverty rate, and a low standard of living. In
addition, the budget deficit is expected to rise from 8.1% in 2009/10 close to 10% in
2010/11, as the interim government boosts spending to offset the impact of the political
unrest. The temporary supply shortages that followed the upheaval, coupled with rising
international prices of food and fuel have been adding to the pressure on the domestic
price level since early 2011. Thus the inflation rate is expected to increase from 11.7% in
2009/10 to 13.4% in 2010/11. This paper tries to answer the following questions: How
long will the transition period last? What are the drastic impacts on the political/economic
conditions (after revolution), and also the social/sociological environment in Egypt? And
what about these impacts within the governance framework? What effect does all that
have on neighbourhood countries? At last, what are the solutions and remedies that can
be suggested to overcome this period and start a new flourishing era? We are aiming to
tackle these important topics and examine them through theoretical and descriptive study,
hoping to come up with adequate answers and solutions.