As for egypt, the best way to represent their state during that time would probably making them an puppet of the UK just as the british raj. While they were independant on paper they were still heaviely influenced by the UK. Basicly just as the Philipeans ingame, which are an US puppet.
It should also be mentioned why those states are under direct controll in the first place. It goes all back to HoI 1 i think, where the AI had massive problems with them being puppets or independant. Thats why they were under direct controll in the first place.
If they really made them as puppets it would be very important to have some way of actually building in their territory. Say you want to extend the airbases and naval bases on the philipeans or egypt for example as the US/UK, you probably should be able to do so with your own industrial capacity of course. Then it would actually make sense gameplay wise to make egypt an puppet state.