Islamist businessmen challenge Egypt's old money

A business association founded by a financier for Egypt's new Islamist rulers says it can democratise an economy long dominated by associates of ousted leader Hosni Mubarak, but sceptics fear the emergence of just another clique.

The Muslim Brotherhood dominates post-Mubarak politics. It has less traction in an economy long dominated by an inner circle of businessmen around Mubarak's now jailed son Gamal.

Opponents say the Brotherhood wants to replicate in business its firm grip on politics, with a view to rewarding those who supported the movement financially through the long years it was banned. That dismays liberals who saw in Mubarak's overthrow last year an opportunity for a more meritocratic economy.

Hassan Malek, a tycoon and Brotherhood member, insists his goal has been promoting equal opportunity since he founded the Egyptian Business Development Association in March, three months before the Brotherhood's Mohamed Mursi won Egypt's presidency.

He has modelled EBDA, whose acronym means start in Arabic, on Turkey's MUSIAD, an association of religiously oriented small businesses which share information and contracts to challenge the traditional dominance of larger groups.

We welcome everyone who wants to work with us, said Malek, who has a family background in business and made his money in software, textiles and furniture. Unequal distribution of opportunity is what we seek to change in the new Egypt.

Businesses, many of them smaller enterprises struggling in an anaemic economy, have rushed to join EBDA, which now has over 400 members. It says 1,000 companies are waiting to join.

Some members represent leading businesses such as cable maker El Sewedy Electric, food producer Juhayna  and Egyptian Steel. These flourished during Mubarak's three-decade rule but were not caught up in the corruption lawsuits that emerged after his overthrow in February 2011.

In a mark of its ambitions - and good contacts in powerful new places - EBDA sent a delegation of 80 businesspeople, many of them young entrepreneurs without personal ties to the Brotherhood, to accompany Mursi on a trip to China in August.

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