Lawyers said some of the penal code amendments could lead to more abusive practices by Egyptian police. AFP
Lawyers said some of the penal code amendments could lead to more abusive practices by Egyptian police. AFP

Egypt's parliament approves sweeping changes to criminal procedure law



Egypt's parliament has approved legislative amendments to carry out what officials have described as the most extensive overhaul of the country's criminal procedure law since 1950.

More than 200 changes to the penal code's 560 articles, which still require the president's approval, include granting expanded surveillance powers to the Public Prosecution office, shortening pretrial detention periods, and modifying trial procedures.

The most contentious amendment allows prosecutors to surveil online communications and electronic devices in cases involving crimes punishable by more than three months in prison, after getting a court order. Prosecutors will be allowed to listen to and record private conversations – whether they are voice or video calls, inspect downloads, app store purchases and chat histories, and confiscate letters, parcels, newspapers and publications received by suspects. The courts can issue surveillance permission for a period not exceeding 30 days, although this can be renewed indefinitely.

The amended penal code will also reduce the maximum period of pretrial detention, a long-standing concern for rights activists who claim that prolonged detentions have been used to punish dissidents.

The issue of how long and under what conditions the state can hold citizens awaiting trial was also widely discussed at Egypt’s National Dialogue, a forum launched by President Abdel Fattah El Sisi to allow political parties to discuss points of discord with state policies.

The draft change lowers the limit on pretrial detention from six months to four in misdemeanour cases, and from 18 months to 12 for felony suspects. In cases involving crimes punishable by death or life imprisonment, the maximum period was set at 18 months.

While surveillance and pretrial attention have garnered the most public attention, lawyers and rights groups have raised issue with a number of provisions in the revised penal code, which parliament discussed for months before approving it in principle in December.

A coalition of human rights lawyers headed by Khaled Ali, who often acts as defence lawyer in political dissent cases, outlined 16 objections to provisions that they said would undermine rights to a fair trial and expand the powers of the Public Prosecution at the expense of judges and lawyers.

The lawyers said some of the new articles grant broad investigative powers to all police officers, regardless of rank or qualification, without ensuring sufficient oversight or accountability. These changes could lead to an increase in abusive practices by law enforcement officials, already considered a widespread problem in Egypt.

Human Rights Watch warned in an October review of the draft law that new articles grant the Public Prosecution sweeping powers to deny defendants and their lawyers access to case files, in addition to restricting defence arguments, which undermine the right to a fair trial. The new penal code also lacked a clear definition and punishment for enforced disappearances, despite the widespread use of this practice by Egyptian authorities, the international rights group said.

Human Rights Watch and the Egyptian Initiative for Personal Rights (EIPR) also raised concerns about articles which expand the use of hearings by video conference across all stages of criminal proceedings. They said the practice would violate rights to due process and hinder the ability of defendants to consult confidentially with their lawyers.

Ehab El Tamawy, a member of the majority pro-Sisi Mostaqbal Watan party in parliament who was involved in the revision of the penal code, hailed the amendments as a significant human rights achievement.

Mr El Tamawy said the new provisions were thorough and had been reached after lengthy debate involving all political groups in Egypt.

“The new law does respect the sanctity of the home and of people’s private conversations. That’s why there is a provision requiring a judge to approve exceptions to this and another requiring that the surveillance be carried out for a limited amount of time,” Mr El Tamawy said during a televised phone-in to a popular talk show on Tuesday. “The previous law was based on a constitution from 1923. The last time it was changed was in 1950. 75 years ago.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: January 15, 2025, 3:48 PM