while ibrahim was engaged in the second arabian campaign the pasha turned his attention to strengthening the egyptian economy. he created state monopolies over the chief products of the country. he set up a number of factories and began digging in 1819 a new canal to alexandria, called the mahmudiya (after the reigning sultan of turkey). the old canal had long fallen into decay, and the necessity of a safe channel between alexandria and the nile was much felt. the conclusion in 1838 of a commercial treaty with turkey, negotiated by sir henry bulwer (lord darling), struck a deathblow to the system of monopolies, though the application of the treaty to egypt was delayed for some years.