The American University in Cairo: Alternatives for U.S. Government Support

The University Educational Endowment Fund of the American University in Cairo, Egypt, was established in 1976 by the Agency for International Development (AID) with a local currency grant equivalent to $36 million. The Endowment Fund was intended to earn income to support the University by investing in Egyptian enterprises and business ventures. An audit by AID in July 1976 revealed serious management, financial, and operational deficiencies in the Fund's administration and questioned whether such investment was feasible given the uncertain economic climate in Egypt.