News / Middle East

El-Sissi Reappoints PM to Fix Economy

From left, Coptic Pope Tawadros II, Egyptian interim Prime Minister Ibrahim Mahlab and Grand Sheik Ahmed al-Tayeb, the head of Al-Azhar, the Sunni Muslim world's premier Islamic institution, leave the inauguration ceremony for President Abdel-Fattah el-Sissi in Cairo, June 8, 2014.
From left, Coptic Pope Tawadros II, Egyptian interim Prime Minister Ibrahim Mahlab and Grand Sheik Ahmed al-Tayeb, the head of Al-Azhar, the Sunni Muslim world's premier Islamic institution, leave the inauguration ceremony for President Abdel-Fattah el-Sissi in Cairo, June 8, 2014.
Newly inaugurated President Abdel Fattah el-Sissi reappointed Egypt's prime minister on Monday, signaling continuity as he sets out to fix the economy and overcome political divisions after a long period of turmoil and bloodshed.
In comments carried by the state news agency, Prime Minister Ibrahim Mahlab said the current government would stay on in a caretaker role until he forms a new cabinet.

Consultations had not yet begun, he said, although officials have said many of the leading ministers such as finance are likely to be unchanged.
Sissi, who as armed forces chief toppled Islamist President Mohamed Morsi last July following mass protests, was sworn in on Sunday in a ceremony with low-key attendance by Western allies concerned by a crackdown on dissent.
While Sissi quit the military in March, a lower-than-expected turnout in last month's presidential elections fell short of giving him a strong mandate to take tough measures to repair an economy wounded by three years of instability and regular  violence which has scared away foreign investors and tourists.
Put reforms in place

Keeping the main ministers in place could allow Sissi to  implement quickly the kind of reforms that the United Arab Emirates - one of the Gulf Arab states that gave Egypt billions of dollars in aid after Morsi's fall - has been encouraging.
Fawaz Gerges, professor of Middle East Studies at the London School of Economics, said Sissi had to tackle the problems that are undermining Egyptians' living standards and state finances.
“He knows that he has a one year honeymoon and that's why he has to deliver in terms of jobs, in terms of lowering inflation, in terms of the debt,” he said. “That's why he's keeping Mahlab in place and that's why he's keeping the major portfolios."
One of the most important figures in Egypt's drive to resuscitate the economy is Finance Minister Hany Kadry Dimian, who is expected to stay on in the new administration.
Educated at Columbia University in the United States, he was described by a senior European diplomat as the only ministry expert able to deal professionally with the International Monetary Fund during a failed attempt under Morsi to secure a $4.8 billion loan.
Reuters reported on Friday that Western consultants were advising Egypt's government - apparently with Sisi's blessing - on an economic reform plan which could serve as a basis for restarting talks on a IMF loan deal.
The driving force behind the consulting project is the UAE, which along with Saudi Arabia and Kuwait has showered Egypt with aid totalling more than $12 billion in cash and petroleum products since Morsi's removal.
Muslim Brotherhood

As de facto ruler since last summer, Sisi has driven Morsi's Muslim Brotherhood underground with a crackdown in which hundreds of its supporters have been killed and thousands jailed, polarizing the most populous Arab nation.
However, Egypt's oldest and best organized Islamist movement has survived official repression for decades. Sisi also faces a violent threat from militants based in the Sinai peninsula who are believed to have access to weapons smuggled from chaotic Libya. These have stepped up attacks on police and soldiers since Sisi ousted Morsi.
Mahlab, 65, was appointed prime minister in February after  serving previously in housing portfolio. A civil engineer, he is a former chairman of Arab Contractors, one of the region's largest construction companies, and worked briefly in Saudi Arabia before joining the government following Morsi's overthrow.
The Egyptian pound strengthened slightly at a central bank sale on Monday to 7.1402 pounds to the dollar from 7.1403 at its last sale on Thursday, and it remained steady on the parallel market.
The gap between the pound's rates on the official and black markets has narrowed markedly since Sisi's election, with the currency appreciating markedly against the dollar at unofficial rates.
Egypt's benchmark stock index closed up 1.1 percent.

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