First Published: 2014-02-25

New Egypt PM begins with promise to revive tourism sector
Analysts say formation of new government is likely to work in favour of army chief Field Marshal Abdel Fattah al-Sisi.
Middle East Online

By Jay Deshmukh - CAIRO

New government ‘in three to four days’

Egypt's military-installed authorities named a former member of ousted strongman Hosni Mubarak's ruling party as prime minister Tuesday ahead of a presidential election expected to bring the army chief to power.

Ibrahim Mahlab, a former state-sector construction boss, vowed to fight "terrorism" and bring back tourists as he began work on forming a new cabinet after the surprise resignation on Monday of Prime Minister Hazem al-Beblawi.

Beblawi's government had been installed in July after the military ousted Islamist Mohamed Morsi, Egypt's first freely elected president and its first civilian one.

But it resigned in the face of mounting criticism of its failure to get to grips with a floundering economy and worsening industrial unrest.

Mahlab said that interim president Adly Mansour had tasked him with forming a new government "in three to four days" and promised to work hard to improve services for Egyptians and fight "terrorism."

"This will create the conditions for investment and the return of tourism," he said.

Since Morsi's overthrow, Islamist militants have killed several foreign tourists as well as scores of security personnel in attacks that have severely dented the economically vital tourism sector.

A limited reshuffle had been expected to allow army chief Field Marshal Abdel Fattah al-Sisi to step down as defence minister and run for president.

But Sisi, who is expected to win the election this spring, will retain his post in Mahlab's cabinet for around two weeks until an electoral law has been passed, a senior official said.

Mahlab, a former chairman of Egypt's state-owned Arab Contractors Company, one of the Middle East's leading construction conglomerates, was named to the upper house of parliament in 2010, the year before Mubarak's overthrow in the Arab Spring uprising.

Mahlab, who is now in his 60s, resigned from the company in September 2012 after heading it for 11 years, the state-owned daily Al-Ahram said.

Beblawi's government had become increasingly unpopular despite announcing two economic stimulus packages aimed at kickstarting the foundering economy with funds provided by friendly Gulf Arab states.

But his government's resignation took even Washington by surprise.

"Obviously we're watching it closely," said State Department spokeswoman Jen Psaki.

Sisi, who emerged as the country's most popular political figure after ending Morsi's divisive one-year rule, has not yet announced his candidacy for the president, but aides say he has already decided to stand.

The field marshal, who was also first deputy prime minister in Beblawi's cabinet, has to resign from the government and the army before he can officially announce his candidacy.

Analysts say the formation of a new government is likely to work in Sisi's favour.

"If Field Marshal Sisi decides to run, he would like to run with a government that has a good reputation and can help him by resolving some of the urgent problems faced by the people," said Mustapha Kamel al-Sayyid, a political science professor at Cairo University.

Since July, Egypt has been battling deadly street violence and militant attacks that have scared off foreign investors and tourists alike.

A bloody crackdown on Morsi's Muslim Brotherhood and other Islamists supporters has left more than 1,400 people dead.

Many Egyptians, weary of the three years of turmoil since Mubarak's ouster, view Sisi as a strong hand who can restore stability.

 

Horse-trading begins as Tunisia awaits formation of new government

Israel closes al-Aqsa mosque to worshipers in rare move

UK court says Libyan Abdul-Hakim Belhaj can sue over rendition

Syria accuses Turkey of ‘flagrant violation of sovereignty’

Global campaign to end female genital mutilation kicks off

US to examine troops exposed to chemicals in Iraq

African Union hits back at Somalia rape claims

New scare in Turkey as ‘suspect packages’ found

‘Insults against Netanyahu’ cause embarrassment to US

Kuwait online activist gets four years in jail for insulting judges

Heavy fighting in South Sudan sparks fears of humanitarian catastrophe

Sweden officially recognises State of Palestine

Egypt jails retired general for damaging national security

Gaza civil servants receive delayed salaries

After US criticism, Israel vows no concessions to Palestinians

Libya internationally recognised PM opens doors of dialogue with rivals

Huthi rebels seize stronghold of Muslim Brotherhood in central Yemen

Will Nidaa Tounes shun Islamists in Tunisia government formation?

Egypt starts work on buffer zone along border with Gaza

Turkey Sultan unveils new palace: Another break with symbols of secular state

Heavy toll as ‘Islamic State’ fights for control of Syria oil field

Iran President suffers fresh setback with rejection of Science Minister

Nuclear deal or no deal: ‘Red lines’ lay bare internal divisions in Iran

Heavy security in Mogadishu as UN chief meets Somalia president

Fighters from Free Syrian Army leave Turkey to join Kobane battle

Israel denies banning Palestinians sharing buses

Kurd fighters leave northern Iraq base for Syria deployment

Jordan requests UN emergency meeting over Israel settler expansion

Jerusalem Mayor visits Al-Aqsa mosque prompting anger

Tunisia reinforces commitment to democracy with ‘transparent’ elections

Turkey ‘decides’ for Kobane future: No Kurds, no Assad... Only Free Syrian Army!

Bahrain suspends Al-Wefaq weeks before parliamentary elections

Huge game changer in Tunisia: ‘In-credible’ failure of Islamist Ennahda Party

Libya PM in Khartoum for talks with Bashir

PKK hijack truck seizing explosive substance

Saudi lawyers get jail time for offensive tweets

Ennahda concedes defeat in Tunisia parliamentary elections

Syria rebels launch assault on regime-held city of Idlib

Iraq peshmerga wait for Turkey stance to depart for Syria

Sisi enacts military trials decree to cover ‘existential threat’

US calls for online war against ‘Islamic State’

Donors pledge $8 billion for Horn of Africa

Acid attacks in Iran: Deputy of Judiciary Chief to lead investigation

Lebanon army enters Islamist stronghold in Tripoli

Israel approves plans for 1,000 settler homes in East Jerusalem