During the Oriental Crisis of 1840 between Egypt and the Ottoman Empire, Friedrich fought in the campaign against Muhammad Ali after the Convention of London.

In that convention, the United Kingdom, Austria, Prussia, and Russia had offered Muhammad Ali hereditary rule of Egypt as part of the Ottoman Empire if he withdrew from the Syrian hinterland and the coast of Mount Lebanon.

On 24 September Admiral Stopford decided to occupy Saida and the Austrian ship "Guerriera", on which the Archduke Friedrich was, was added to this expedition.

As Commander-in-Chief, Friedrich introduced many modernising reforms, aiming to make his country's naval force less "Venetian" and more "Austrian".

When the Habsburgs received the city of Venice along with Istria and Dalmatia following the Treaty of Campo Formio in 1797, this situation was changed considerably.

Friedrich had a keen private interest in the fleet, and with him the Austrian naval force gained its first influential supporter from the ranks of the Imperial Family.

It was only able to draw significant public attention and funds during the three short periods of its history when it was actively supported by an imperial prince.

The Austrian Chancellor Prince Klemens von Metternich proposed that Friedrich be named Grand Master of the Sovereign Military Order of Malta, but this was rejected by Pope Gregory XVI.