Egypt Security Sector Report

This dispatch includes a roundup of news related to the Egyptian military and police over the past week.

Military Business

Sisi has been under pressure from international donors (like the IMF) and regional backers to privatize part of the military business empire and cut the advantages the army companies have that manipulate free market forces and “fair competition,” such as the exemptions from taxes and tariffs.

Until now, no concrete steps have been taken, since, naturally, the military is unhappy about having its privileges reduced. And Sisi, whose popularity has hit rock bottom, does not want to antagonize the military in any way, because the generals are his only remaining power base and pillar of support.

The likely scenario is the military selling parts of its corporations to investors or companies indirectly linked to, or partly owned by, the military. The case of Wataniya, which runs petrol stations, could be a model of what is to come. After repeatedly announcing for a couple of years that this company was to be privatized, now the state has asked four companies to submit bids. One of them is Taqa Arabia, in which the military has just bought a 20% stake last month.