Today around one out of fifty Swedes has a recent background from the Middle East and North Africa. Since Sweden entered the European Union in 1995 Sweden participates in the ongoing efforts towards closer co-operation between the EU and its Mediterranean neighbours as expressed in the Barcelona Declaration on the Euro-Mediterranean partnership. Sweden also has a long record of active engagement in issues of North-South relations, and of development co-operation with countries of the South.It was in this light that the Swedish government in 1997 initiated a study on the establishment of a Swedish Institute in Alexandria. The motive was to develop a means to increase broad contacts and co-operation with the countries of the Middle East and North Africa, to facilitate dialogues on issues of common concern, and to contribute to the Euro-Mediterranean partnership.