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They both also give free Empire rank which shouldnt be hard to reach tho considering Egypt needs admin 20 - unless you play without DLCs
If you dont have Empire rank yet form Arabia, otherwise its purely for the sake of the color
Egypt doesn't give free Empire rank, though. I checked and it is still just a kingdom if that switch gets made, unless that's out-dated info I found. Only forming Arabia boosts the government to Empire rank.
Egypt's main thing looks like the claims on Egypt's provinces and a temporary (20 year I think) monthly autonomy boost.
So, I'm still looking at it a bit. I do agree somewhat though that I think Egypt is looking like a slight downgrade so far, though.
Yes, that's what I am doing right now. It's 1699 currently, finally did form Arabia, and taking apart the Ottomans with the help of Hungry and Austria.
I did skip forming Egypt. I jumped to forming Arabia straight from the Mamluks, just to get the free Empire upgrade. Because yes, you're right in that Mamluks are better off than Egypt government-wise.
I am now trying to compare what Arabia actually gives. The empire upgrade I think I could have done anyways once I settled peace and got the last piece of the puzzle (Baghdad, from the Ottomans). I think I crossed the 1,000 dev threshold naturally at that same time for that upgrade.
The whole situation is just interesting because Mamluks didn't used to have their own government type. That's the main trade-off... the traditions/ideas I have, now that I am Arabia, are still the Mamluk ones, which is good. But trying to sort out now if even Arabia was that much of an upgrade (I formed them for the Arabian Coffee achievement, but aside from the achieve am still thinking Mamluks were maybe better).
That said, I just looked in-game, and it looks like I can take the Tier 1 government reform to go back to Mamluk Government... I haven't tried it yet because I assume that that will end being Arabia (or Egypt, if I had formed them as well). Not sure on that part, as it looks like I can still go back to the Mamluk Government type via the tier 1 reform.
But again, ultimately yes, it appears like Mamluks get a decent boost to admin MP, and that probably is the best buff available.