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Egypt has laws in place tocriminalize various forms of corruption, including extortion,embezzlement andbribery, but they are poorly enforced.[1][2]
Businesses with more informal connections within the government receive preferential treatment when navigating through Egypt's regulatory framework, providing a disincentive for competition. An inefficient and sporadically enforced legal system and a widespread culture of corruption leave businesses reliant on the use ofmiddlemen known as "wasta" to operate, and well-connected businesses enjoy privileged treatment.[3]
Facilitation payments are an established part of 'getting things done', despite irregular payments and gifts being criminalized. Facilitation payments are regarded as bribery in many countries, which prevents many foreign entities from financial involvement with Egypt, since they are a required part of doing business. Corruption makes the costs of both local goods and imports higher, decreasing the purchasing power of individuals, which magnifies poverty.[3]
However, with the new 2016 Investment Law[1] signed in March 2016 under the Minister of Investment and International Cooperation Sahar Nasr (government ofSherif Ismail) under the presidency ofAbdel Fattah el-Sisi, the business scene has seen more flexibility. The law aims to reduce stifling bureaucracy in order to attract more investors, which has seen growth in investment in Egypt.[2]
OnTransparency International's 2024Corruption Perceptions Index, Egypt scored 30 on a scale from 0 ("highly corrupt") to 100 ("very clean"). When ranked by score, Egypt ranked 130th among the 180 countries in the Index, where the country ranked first is perceived to have the most honest public sector.[4] For comparison with regional scores, the average score among Middle Eastern and North African countries[Note 1] was 39. The best score among Middle Eastern and North African countries was 68 and the worst score was 12.[5] For comparison with worldwide scores, the average score was 43, the best score was 90 (ranked 1), and the worst score was 8 (ranked 180).[6]
Historically, the gap between legislation and enforcement has hampered the government's efforts to fight corruption.
Prior to the 2011 revolution, critics agreed that corruption in Egypt was widespread and that anti-corruption measures were perceived to be mere cosmetic changes serving Mubarak's political agenda. However, in the last year of PresidentMubarak's 30-year presidency, in 2010, the "National coordination committee for combatting Corruption"[7] was created but was amended by a Prime Minister decree (No 493) signed by PMIbrahim Mahlab in 2014 to provide justice, equality, and equal opportunities.
The uprisings spurred a whirlwind of official corruption cases as well as the trials of several ministers and businessmen with ties to the former regime. The government under theMorsi administration claimed to focus its efforts on the fight against corruption and included several anti-corruption initiatives in the new 2012 constitution. But soon after the constitutional amendment in 2012,[8] initiatives started to develop slowly, resulting in complete neglect before the2013 revolution erupted on June 30.[9]
TheConstitution stipulated, among other provisions, the public's right to information, data, and documents. It also required an annual financial disclosure from Parliament members. Furthermore, the government created an anti-corruption commission designed to deal with standards of integrity and transparency in government and address conflicts of interest.[10]
In terms of enforcement, more happened under the Sisi regime, with one highly publicized case of a judge who was accused of corruption and arrested the moment he resigned from his position. The judge committed suicide very soon thereafter.[11] Under the presidency ofAbdel Fattah el-Sisi, many attempts to arrest public figures accused of different forms of corruption have erupted, including ones against the maingovernorates' governors, as well as hospital directors.[12] In 2014, as the first move for the president, a council for combating corruption was created and headed by thePrime Minister, during which high-profile officials get to review developments in the area of reducing corrupt practices.[citation needed]
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