Egypt's economic news

Egypt's battered banks are starting to hold their own, at least as far as the non-performing loans are concerned. Leading banks have reported either an improvement or no deterioration in this situation. This might seem a rather strange measure to judge the success of banks but given the history and the fall in Egyptian GDP in the first few months of 2011, it is mildly encouraging.

Tourism is down by 7.8 per cent in the first half of 2011 but, so far, Suez Canal tolls were up in June 2011 compared with the previous year, and remittances from Egyptian expatriates were at US$9 billion, well up on the US$6 3 billion of 2010 despite what is happening in Libya. Inflation fell in June.

The government has continued to prepare industrial enterprises for the proposed cut in subsidies for the industrial sector to save around US$0.85 billion in the budget, pointing to the earlier increase in production and experts from this sector.

Palm Hills, the real estate developer known for its luxury compounds and associated with the father-in-law of Alaa Mubarak, has reported second quarter losses. The company and some of its senior executive are being investigated as a part of the probes being made into the sources of revenue of people associated with the Mubarak regime.

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

© 2011 Menas Associates

Egypt: Former interior minister Habib Al-Adly sentenced to 12 years in prison

Egypt's former interior minister Habib Al-Adly was sentenced to 12 years in jail on charges of money-laundering and profiteering on Thursday 5th May.

Al-Adly is the first senior official from the regime of ousted president Hosni Mubarak to be tried. He pleaded not guilty to charges of money-laundering and illicitly enriching himself while in office, but was convicted of both.

Al-Adly ran Mubarak's security services for more than a decade and was despised for abuses committed by his security agents, according to AFP. Under his rule, torture was routine and police officers were seldom tried for abuses of power.

Mubarak was forced to resign from power in February after 18 days of demonstrations. Al-Adly's police forces were a particular target for demonstrators during the first days of the protests, a sign of how they were perceived by the populace.

The charges that Al-Adly were convicted of related to the sale of land, which he owned, but tasked the police with finding a buyer for. He was given seven years for profiteering and five years for money-laundering. He was also fined 15 million Egyptian pounds (US$2 million).

He also faces a second trial on charges of ordering police to shoot protestors, and a third over a deal with a German firm to supply Egypt with licence plates at inflated prices.

Former president Mubarak is also under investigation for corruption and for involvement in the killing of anti-regime protestors. Both al-Adly and Mubarak could face the death penalty if convicted of the latter charge.

An official inquiry into deaths during the revolt of January and February found that at least 846 civilians were killed. Most of them were shot in the head and chest, indicating the use of snipers.

Much of the former regime's leadership are now behind bars, most of them on suspicion or charges of corruption. Mubarak's two sons Gamal and Alaa are currently in prison, while Mubarak is being detained in a hospital in Sharm el-Sheikh, after allegedly suffering a heart attack.

Sources: AFP, BBC News

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

Hosni Mubarak detained in hospital

Former Egyptian president Hosni Mubarak has been placed under detention in his hospital room. His two sons, Gamal and Alaa, have also been detained and will be questioned in due course.

The news has been greeted with cheers by the opposition leaders responsible for brining down Mubarak's administration in February. Egypt's prosecutor general has detained the former president and his two sons, ahead of the impending investigation. Mubarak is reportedly suffering with heart problems and is in an "unstable condition".

The protests in Egypt have continued with tens of thousans of protesters staging weekly Friday demonstration in Tahrir Square. The Egyptian people are demanding that Mubarak be put on trial for the deaths of their fellow protesters and alleged abuse of power during his three decade reign.

It is estimated that around 360 people have been killed during the protests and hundreds more injured. Opposition within Egypt, however, is primarily concerted with the Mubarak family's wealth and how it was obtained. Experts claim that most of it was acquired through corrupt business dealings; others suggest that Gamal and Alaa, used their political clout to pressured domestic companies into giving them shares without paying the market price.

Some opposition groups have expressed suspicions over the timing of Mubarak's heart problems as initial reports indicated he was well enough to undergo questioning. The former Egyptian leader has rarely been seen since his departure in February, and has reportedly been staying at his holiday villa in Sharm El-Sheikh.

Sources: BBC, The Guardian, Boston Globe

For more news and expert analysis about Egypt, please see Egypt Politics & Security.