Sisi's Reliance on Mubarak's Old Guard: What It Means for Egypt's Faltering Economy

On December 25, 2024, Egyptian Prime Minister Mostafa Madbouly held a meeting with a group of businessmen at the government headquarters in the New Administrative Capital. The meeting aimed to address the “challenges facing investment and the private sector in Egypt.”

Notably, the guest list included several prominent figures from the regime of former president Hosni Mubarak, who was ousted following the January 25 Revolution in 2011. Among them were Hisham Talaat Moustafa, Ahmed Ezz, and Hassan Heikal.

This raised questions about why the government is turning to Mubarak-era businessmen, many of whom were implicated in corruption and manipulation. What role can they play in resolving Egypt’s economic crisis?

Hisham Talaat Mostafa

One of the key figures present was Hisham Talaat Mostafa, a leading businessman during Mubarak’s rule. He serves as the CEO and managing director of the Talaat Mostafa Group and is known for his close ties to the UAE.

His relationship with the UAE dates back to a controversial 2008 case involving the murder of Lebanese singer Suzanne Tamim in Dubai. Talaat was convicted in connection to the case but was later pardoned by Abdel Fattah el-Sisi in 2015.

Economically, Talaat is a major partner with the UAE in large-scale real estate projects undertaken by Talaat Mostafa Group in collaboration with Emirati companies. Among these is the “Madinaty project,” one of Egypt’s largest residential developments, supported by substantial infrastructure and service investments from the UAE’s ADQ Holding Company.

The group is also heavily involved in developing parts of the New Administrative Capital, working alongside Emirati investors.

On January 12, 2024, ADQ Holding and ADNEC (Abu Dhabi National Exhibitions Company) announced final agreements to acquire a 40.5% stake in Icon Group, the hospitality arm of Talaat Mostafa Group.

Talaat’s links to the Mubarak regime extend beyond business dealings. In 2011, he admitted to a corruption case involving the sale of underpriced residential units to Mubarak’s sons, Gamal and Alaa, as a way to expand his business and leverage their influence to boost his investments.

These connections and his controversial history raise questions about the potential implications of his involvement in efforts to revitalize Egypt's economy.

Ahmed Ezz

The second name on Mostafa Madbouly's guest list was Ahmed Ezz, often referred to as the “Iron Emperor.” He was a prominent figure in Mubarak’s regime before the 2011 revolution.

When the January 25 Revolution erupted, bringing down Mubarak’s 30-year rule, many were astonished at how quickly the symbols of his power crumbled. Among the most visible was Ahmed Ezz, a member of the now-dissolved National Democratic Party’s Policies Committee and a close ally of Gamal Mubarak, who was positioning himself as his father’s successor.

Ezz wielded significant influence, particularly in two key areas: the economy and politics. He became a prime example of the intertwining of wealth and political power. On April 3, 2010, the “Citizens Against High Prices” movement labeled him as “Public Enemy No. 1” for consumers due to his manipulation of the market.

At the time, Ezz was also responsible for orchestrating the campaign for the 2010 parliamentary elections, which were marred by blatant vote-rigging and became one of the catalysts for Mubarak’s downfall.

In April 2011, Ezz was arrested after being banned from travel and having his assets frozen. By September 2011, he was sentenced to ten years in prison and fined 660 million Egyptian pounds. In March 2013, he received an additional 37-year sentence for embezzling funds from the al-Ezz Dekheila Steel Company.

However, following Abdel Fattah el-Sisi’s rise to power after the 2013 military coup, Mubarak-era figures began to regain their footing. On August 7, 2014, Ezz was released on bail of 250 million pounds despite his corruption cases.

By August 12, 2018, Ezz announced a reconciliation with the government, which lifted his travel ban.

On January 20, 2022, al-Ahram Center for Political and Strategic Studies (Ahwal Masrya) reported that Ezz had regained control over Egypt’s steel industry by acquiring an 18% stake in Ezz Steel, reestablishing his dominance in the sector.

Hassan Heikal

The third prominent figure at the meeting with Egypt’s Prime Minister Mostafa Madbouly was Hassan Heikal, founder of the Kazyon retail chain and former CEO of EFG Hermes. He is also the son of the late Egyptian journalist and writer Mohamed Hassanein Heikal.

Hassan Heikal faced corruption charges, accused of stock market manipulation during Mubarak's era. He was known to have close ties to Alaa Mubarak, the former president's son, who was active in economic circles.

In 2014, Egyptian opposition channels aired leaked recordings involving senior military officials, including Abdel Fattah el-Sisi and his then-chief of staff Abbas Kamel.

In the recordings, Mohamed Hassanein Heikal is heard asking the officials to intervene with the judiciary to resolve the financial corruption case against his son, Hassan. Kamel contacted the public prosecutor in the presence of General Mahmoud Hegazy, Sisi’s brother-in-law, to arrange for Hassan Heikal to be allowed to travel and to settle the charges against him.

The leaked audio suggested that the public prosecutor at the time, Hisham Barakat, did not object or question the nature of the charges. Instead, he reportedly assured Kamel that he would intervene and resolve the matter.

Other Attendees

Among the attendees at Prime Minister Mostafa Madbouly's meeting was businessman Sherif el-Kholy, a partner and regional director for Actis, covering North Africa and the Middle East.

Also present was Yassin Mansour, chairman of Palm Hills Developments. Mansour is the cousin of Ahmed el-Maghrabi, Mubarak's last housing minister, and was banned from traveling in 2011 by an order from the public prosecutor.

At the time, Assem el-Gohary, Assistant Minister of Justice for the Illicit Gains Authority, revealed that a judicial committee had uncovered evidence implicating Mansour, along with Alaa Mubarak and former tourism minister Zoheir Garana, in money laundering crimes.

However, on July 1, 2012, the charges against Mansour were dropped after the prosecutor general lifted his travel ban, following a settlement payment of 250 million Egyptian pounds.

Another attendee was businessman Ahmed El-Sewedy, CEO and managing director of el-Sewedy Electric. Ahmed is the brother of Hesham el-Sewedy, who was implicated in the 2011 stock manipulation case involving Gamal and Alaa Mubarak.

A Bad Omen

This list of attendees sparked reactions from politicians and activists. Among them was actor Abbas Aboelhassan, who wrote, “Yesterday's conference reminds me of a boss who, to cover up his incompetence, laziness, and lack of principles, rehires employees who were previously fired and jailed for stealing from the company under the excuse of the false proverb: ‘A clever thief is better than an honest fool.’”

“How far do you intend to crush people economically, morally, physically, and intellectually? A stolen revolution, a thousand dead, and years wasted to overthrow a corrupt octopus-like regime—only for you to bring back and polish the same tentacles of that octopus after 14 years? It's a surreal and miserable tragedy.”

“They’ve let Ahmed Ezz out of the bottle, and now other members of the Policies Committee are appearing on TV screens. It’s a search for alternatives—even if it means using Gamal Mubarak’s men without Gamal himself! These individuals were sources of tension, not stability. They are the ones who destroyed political life and paved the way for revolution,” Selim Azouz, another journalist, posted on X.

“Mubarak’s rule was stable until these figures emerged! A state of chaos and a bad omen.”

The Economic Situation

Prime Minister Mostafa Madbouly's meeting with businessmen from the Mubarak era comes at a time when Egypt continues to grapple with a worsening economic crisis that has persisted for years.

On December 4, 2024, the International Monetary Fund (IMF) announced that it had reached a staff-level agreement with Egypt regarding the fourth review of the Extended Fund Facility program. This agreement paves the way for Egypt to receive approximately $1.2 billion, contingent upon the IMF Executive Board's approval.

To date, Egypt has completed the first review, receiving $347 million, followed by the second and third tranches of $820 million each, bringing the total disbursed to $1.98 billion by the end of the third review.

In March 2024, the Central Bank of Egypt devalued the Egyptian pound for the fifth time since 2016, as part of IMF conditions for an $8 billion loan. Following this decision, the pound's value fell to 48 against the dollar and has since approached the 51 mark in recent days.

These measures are part of broader IMF stipulations, which include currency devaluation and the sale of state-owned and military-owned assets.

Egypt's external debt has surged to over $160 billion in recent years. Meanwhile, the government has withheld updated poverty statistics for several years. The last official figure, released by the Central Agency for Public Mobilization and Statistics in December 2020, estimated that 29.7% of the population lived in poverty. However, a World Bank report indicated that this figure had risen to 32.5% by the end of 2022.

A Model of Failure and Corruption

Commenting on the situation, economic researcher Ahmed Yousef described the reliance of the Sisi’s regime on Mubarak-era businessmen as “a model of administrative failure and systemic corruption in addressing a severe economic crisis.” 

“If this crisis persists, it could dismantle the very foundations of the Egyptian state, as seen previously in Sri Lanka and Argentina,” he told Al-Estiklal. 

“The current regime faces a major crisis with investors because it has built its economic policies on transforming the military and senior officers into a parallel economy that dominates the state's economic machinery. This monopolistic approach has further eroded an already fragile economic system.”

“The real problem emerged when Egypt, which needed a driving force to transition from a rent-based economy to one rooted in production, industry, and investment, instead entered a state of stagnation, failure, and conflict. Coupled with mounting loans and debts, this led to the current dire state,” the researcher added.

Addressing the return of Mubarak-era figures, Yousef said, “These individuals represent an ideal model for Sisi. First, they are products of the state and can be controlled and negotiated with. Second, they possess economic expertise and regional connections, particularly with Saudi Arabia and the UAE.”

“For the military establishment, these businessmen are preferable to figures like Sawiris or Mohamed Farid Khamis, as such independent players cannot be easily controlled. The military regime only engages with those it trusts completely.”

“Despite this, the reintroduction and empowerment of Mubarak-era businessmen are unlikely to yield any significant positive outcomes. At best, it may stir stagnant waters, but Egypt’s economy requires a rescue revolution akin to Turkiye's recovery following its 1990s recession. Egypt needs full economic liberation from military control, open investment opportunities, and political reform to propel the country forward,” he concluded.