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It has been heralded as a humanitarian gesture and a sign of Arab leadership, but Qatar’s decision last week to double its $2.5 billion aid package to Egypt is also a telling indicator of the true economic state of affairs in post-revolutionary Egypt.

The prognosis is exceedingly grim. Two years after the ouster of long-serving strongman Hosni Mubarak, Egypt is in the throes of a full-blown economic crisis. Government reserves have dropped by more than half, plummeting from $36 billion in 2011 to just $15 billion today. That’s enough to cover just three months of imports of vital commodities such as food and petroleum. GDP growth has slowed to under 2 percent, and the country’s national currency, the Egyptian Pound, is in freefall. At the same time,...