Business Corruption

Property rights are well-defined and protected under Egyptian law. However, according to the Bertelsmann Foundation 2010, the complexity of the legal code combined with a high level of corruption in government agencies and courts can give rise to violation of property rights. The US Department of State 2011 also reports that complex laws can make it difficult to establish and trace titles to land and other real property.

According to the World Bank & IFC Doing Business 2011, the cost involved in registering property is very low in Egypt, both in comparison to MENA regional and OECD averages. On the other hand, registering property is very time-consuming, taking twice as long as the regional average. In this regard, companies should note that a cumbersome bureaucracy often gives rise to demands for so-called 'speed payments'.

Political Corruption

In February 2010, the Public Funds Prosecution Office and the Administrative Control Authority started an investigation of the former Minister of Housing, Mohammad Ibrahim Suleiman, indicted on misappropriating public funds during his time in office from 1993 to 2005. According to Al-Ahram Weekly, the investigation covers a number of corruption charges, the most important being that the former minister illegally allocated land to family members and sold land to companies at prices less the value of the land in return for kickbacks. The investigation was opened shortly after Suleiman was forced to resign from parliament due to the State Council's decision that it was in conflict with the constitution when he was appointed chairman of the government-owned Maritime Petroleum Service Company while serving as an MP.

After toppling the old regime, several important figures in the political life were charged with allegations of corruption mainly connected with illegal land acquisition and appropriation. According to a July 2011 article by Reuters, former Prime Minister Atef Obeid was detained 15 days for investigation. He was not only charged with illegally selling land that was protected as nature reserve, but also with selling it far below market value. Along with the former deputy prime minister, the two members sold land worth EGP 208 million to a businessman for only EGP 8 million.

In September 2011, businessman and former Tourism Minister, Zouhair Garanah, was sentenced to 10 years in prison for corruption. According to a September 2011 news article by Egypt.com, during his service, Garanah had allowed businessmen to illegally acquire state land.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the protection of property rights in Egypt, including financial assets, a score of 4.1 on a 7-point scale (1 being 'very weak' and 7 'very strong').

The World Bank & IFC: Doing Business 2011:
- Registering property takes 7 procedures, can last an average of 72 days and amounts to 1% of the property value.