Separating government policy from that of a state-owned company is difficult: pointless in Egypt.

Just wondering - why do you believe it is a foolish policy?

Absence of alcohol on board is a USP attractive to many.

You might find it unattractive, but others care less if they miss out on an inflight drink, while many in the airline's home market and elsewhere in its network are relieved to be able to secure a place in an an alcohol-free environment.