Business backs Sisi for president

Foreign and local investors are hoping for a victory for Egypt's former defence minister, Abdel Fattah el?Sisi, in the presidential election in May. A desire for a return to stability, rather than military rule, underpins the enthusiasm among the business elite for his candidacy. Investors feel comforted by Mr Sisi's perceived decisiveness in a time of crisis, but it remains to be seen whether the military strongman can live up to expectations in the business community that he will oversee an improvement in the Egyptian business environment.

Local business tycoons overwhelmingly cheered the downfall of the Muslim Brotherhood's Mohammed Morsi in July 2013. The EGX 30, the benchmark stockmarket index, has gained more than 70% since his removal, signalling a vote of confidence in the post?Morsi road map. While in power, the Brotherhood was felt to be settling scores with business giants, some of whom had close links with members of the ousted regime of Hosni Mubarak. For example, Orascom Construction Industries (OCI), Egypt's biggest listed company, became entangled in a US$1bn (E£7.1bn) tax settlement case with the government during Mr Morsi's one?year presidency. This eventually prompted Naguib Sawiris, a Coptic Christian and brother of the chief executive of OCI, Nassef Sawiris, to back the Tamarrod youth movement that mobilised mass support to bring down the Brotherhood.

Open for business

To send a message of reassurance to investors, the current cabinet under the prime minister, Ibrahim Mahlab, approved amendments to the existing investment law (No. 8 of 1997) in April, which in effect banned third?party challenges to contracts between the government and investors. This resonates with Mr Sisi's remarks to Al Seyassah, a Kuwaiti newspaper, in February, in which he stressed the importance of assuring investors that "contracts with the state will be respected". This has been among the key demands by local and foreign investors, especially Gulf Arab businessmen who were hit by a raft of legal challenges over contracts signed with the Mubarak regime. Since the February 2011 revolt, at least 11 rulings have been issued by Egyptian courts to reverse contracts signed by previous governments involving state property that was sold at deflated prices.