Britain's stated intention was to set Egyptian affairs in order and then withdraw, but its interests dictated a more active and permanent involvement. From 1883 to 1907, Egypt was controlled by the British Consul-General, Sir Evelyn Baring, later Lord Cromer , who coined the term "Veiled Protectorate" to describe the relationship between the two countries.

 

The emergence of the Mahdi in Sudan accelerated the trend towards direct British involvement in military and civil affairs. Sudan was nominally an Egyptian khedival possession - a status quo which the British, ostensibly, moved to protect. However, Britain was clearly pursuing its own interests, and dominating Egyptian government to the extent of replacing its key officials with British colonial personnel. Egyptian resentment at this usurpation of authority found expression both under Tewfiq's son, Abbas II , who came to power in 1892, and in a nationalist movement led by a young lawyer, Mustafa Kamil . To ameliorate the situation, the British made a series of reforms and allowed Orabi to return from exile in Ceylon.

Economically, however, Egypt was effectively a colony, with Britain supplying all the country's manufactured goods, and in turn encouraging Egyptian dependence on cotton exports. In order to grow cotton, the fellaheen had to take out loans; when prices fell, many were forced to sell up to large landowners.