FGM doesn’t really have any economic or health benefits. Al-Maligi is just making excuses. The real reason why he favors it is because it is Islamic:
“Circumcision is obligatory (for every male and female) (by cutting off the piece of skin on the glans of the penis of the male, but circumcision of the female is by cutting out the bazr ‘clitoris’ [this is called khufaadh ‘female circumcision’]).” — ‘Umdat al-Salik e4.3, translated by Mark Durie, The Third Choice, p. 64
Why is it obligatory? Because Muhammad is held to have said so: “Abu al- Malih ibn Usama’s father relates that the Prophet said: ‘Circumcision is a law for men and a preservation of honour for women.’” — Ahmad Ibn Hanbal 5:75
“Narrated Umm Atiyyah al-Ansariyyah: A woman used to perform circumcision in Medina. The Prophet (peace be upon him) said to her: ‘Do not cut severely as that is better for a woman and more desirable for a husband.’” — Abu Dawud 41:5251
He thinks that if there is no female genital mutilation, there will be a “collapse of morals” because the whole idea of it is to destroy a woman’s sexual pleasure so that she can be easily controlled. It’s quintessentially barbaric.
“Egyptian Cleric: Female Circumcision Has Economic Benefits; Jews Fight It in Keeping with Protocols of the Elders of Zion,” MEMRI, March 27, 2017:
Egyptian cleric Abd Al-Wahhab Al-Maligi maintained that there were economic and health benefits to female circumcision. Speaking on the Egyptian Al-Seha Wal-Jamal TV channel on March 27, he said that the Jews were the first to talk about it because “they do not want Islam or the Muslims to be pure, developed, and civilized,” and cited “The Protocols of the Elders of Zion” in support of his argument.
Abd Al-Wahhab Al-Maligi: ”I will talk to you about female circumcision, from the medical, religious, economic, and historical perspectives. So lend me your hearts and ears.
”The discussion about female circumcision goes back to the past century. The first time that this subject was debated extensively was in the past century. Who were the first to talk about it? The Jews. They do not want Islam or the Muslims to be pure, developed, and civilized, so they started talking about it.
”In The Protocols of the Elders of Zion it is written: ‘We must strive for the collapse of morals, so that it will be easier for us to dominate the world.’
”They tell you that female circumcision causes infertility. Says who? How can female circumcision cause infertility?! Egyptian women are circumcised, yet they give birth more than all the other mothers in the world. Allah be praised! So how can this cause infertility? It is the uncircumcised women of Europe who are infertile. Allah be praised!
”Are there any economic benefits to female circumcision? Yes! What are the economic benefits of female circumcision? Female circumcision is a preventive medical measure. Someone who is uncircumcised will be afflicted with many serious diseases, which we will discuss later, Allah willing. Someone who contracts one of these diseases must spend money, and the state must spend money on his treatment, and so on. But we can save all this money and direct it elsewhere. So this constitutes preventive medicine.”