Egypt

People

Human trafficking is a pervasive criminal market in Egypt, affecting men, women, and children who are often subjected to forced labour or sex trafficking. Victims are frequently employed in domestic service, cleaning, or delivery work, with child-buying schemes also prevalent. Unaccompanied minors among African smuggled individuals as well as Syrian refugees are particularly vulnerable to trafficking. Moreover, many migrant workers and refugees from Sub-Saharan Africa and the Middle East who reside in Egypt may find themselves susceptible to forced labour as well as abusive practices that resemble human trafficking. The use of social media platforms and such has been reported as a means of facilitating labour-trafficking networks between Egypt and the Middle East. Organ trafficking is also a persistent issue in Egypt, with illegal kidney transplants leading to the arrest of those involved, including doctors and members of organized crime groups.

Egypt is a source and transit country for people smuggling, especially for people from Eastern Africa. Although government controls and COVID-19 border restrictions have at times reduced smuggling, it has broadly increased since 2020. Economic hardship caused by increasing inflation and poverty rates has resulted in a notable increase in human smuggling out of Egypt. There has been a resurrection of the migration route extending to Italy through the Libyan coast, the use of which had declined due to violence in Libya and the Egyptian shuttering of the border. In this line, a significant increase in the number of Egyptian irregular migrants arriving in Italy has been observed in recent years. Refugees in Egypt are at risk of exploitation, unlawful detention, and deportation. Extortion and protection racketeering are also reported, though they are not very recurrent and generally not strictly connected to organized crime.

Trade

Arms trafficking continues to pose a significant challenge in Egypt, with the country being among the world's top arms importers. Ongoing conflict in Sinai and instability in neighbouring Libya have contributed to the illicit trade of weapons. Egypt has also been identified as a risky country for exporting arms, with concerns raised about the country's disproportionate use of weapons. The Egyptian Border Guards have seized large quantities of weapons and ammunition in recent years, indicating efforts to combat the problem.

Counterfeit goods are a widespread issue in Egypt, with locally produced fake products and infringed items being traded online through various platforms. The country is particularly known for being a source of counterfeit footwear, jewellery, leather goods, and handbags imported into the EU. Illicit trade of excise goods, such as illegal tobacco products as well as alcoholic beverages, is another issue in Egypt. Almost one-tenth of cigarettes in circulation are illegal, but the country has taken measures to address this, including implementing a track-and-trace system on cigarettes, controlling the country's borders, and conducting periodic and sudden inspections of manufacturers' and traders' warehouses. The e-cigarette sector has also been heavily affected by counterfeits, although the government lifted the ban on vaping products to promote the legal e-cigarette business.

Environment

While there is no evidence of an illegal flora trafficking market in Egypt, the illegal trade of fauna is a problem. Protected species, such as Egyptian tortoises, falcons, and fennecs, are trafficked for the illegal pet market or traditional medicine. Birds are hunted for food and trade, with songbirds being the most commonly traded. Poachers take advantage of the relative lawlessness of desert areas, primarily the Sinai, to hunt protected animals such as the ibex, wild donkeys, oryx, and Dorcas gazelles, sometimes using motorized vehicles and war weapons. The Egyptian black market is reportedly full of imported exotic animals, including apes, felines, and crocodiles from Libya and West Africa. In addition, there have been ivory seizures and illegal fishing has worsened.

Gold mining operations in Egypt have increased, leading to a rise in the number of actors involved in smuggling gold. Although historically Egypt has not been a significant exporter of this metal, the UAE has reported imports from Egypt have grown substantially, suggesting that the country is being used as a transit point for Sudanese gold being moved to the Middle East. Fuel smuggling between Libya and Egypt is also increasing as a result of the price differences between the two countries. Underground tunnels have been used to smuggle various goods, including fuel, between Egypt and the Gaza Strip across the Rafah border for several years. Despite Egypt’s efforts to dismantle the tunnels, smugglers are restoring some of them to resume their activities, which would raise concerns in Egypt and Israel, fearing the infiltration of extremists and the smuggling of materials likely to be used to manufacture weapons.

Drugs

The trade of heroin persists in Egypt, despite efforts by security forces to eliminate it. Egypt's strategic location makes it a significant destination and transit point for heroin moving from Asia to Europe, Africa, and the US. Poppy cultivation takes place in north Sinai using new technologies such as solar panel water pumps, which enable off-grid farming. While there have been substantial seizures of heroin and other drugs in the country, the trade thrives. In contrast, Egypt is not a primary destination for cocaine, but its geographic location could serve as a critical crossroad between major cocaine-producing areas and large consumer countries. Inbound seizures of cocaine in Egypt are usually small and rarely exceed a few kilograms. Cocaine consumption is mostly limited to the middle and upper classes in metropolises and holiday destinations.

Despite strict laws prohibiting cannabis consumption, the drug is widely used in Egypt, which serves as both a destination and source country. Cannabis is prevalent, and there are reports that illegal growers of the drug in Sinai are improving their production quality using new technology, seeds, and methods to meet local market demands. Synthetic drugs, too, are a growing concern, with Tramadol being one of the most commonly used and trafficked drugs. Tramadol is smuggled into Egypt from Libya or arrives via maritime routes and is popular among Egyptian youth. Additionally, the trafficking and domestic consumption of Captagon is increasing, primarily from Lebanon and Syria and en route to other Arab countries. Increased production of methamphetamine in Afghanistan also raises concern as Egypt is being targeted as a source for new markets and transit routes.

Cyber Crimes

Cybercrime is becoming a serious threat. With communications and technology being the fastest-growing economic sectors, Egypt has become more vulnerable to cyber-attacks than ever before. Every year, millions of email threats, fake URLs, and malware attacks are detected within the country.

Financial Crimes

The thriving informal sector in Egypt is under serious threat from various financial crimes, including fraud and corruption. In the North African country, financial crimes are prevalent and diverse, with organized crime groups, tax evaders, and illicit gamblers all playing a part. Terrorist groups also receive funding through donations from the public and legitimate sources of income provided by businesspeople who support these groups. Financial crimes have infiltrated Egypt's legitimate economy, revealing connections between powerful families, businesspeople, and ruling elites. With the military controlling roughly half of the economy, there is a lack of transparency in their finances, leading to embezzlement and misuse of vast sums of money by regime members, adversely affecting Egypt’s economy and development.

Criminal Actors

Mafia-style groups in Egypt continue to engage in trafficking activities with Sudan and Israel, with little change in their operations. Meanwhile, criminal networks with transnational connections are also present, particularly in human trafficking and people smuggling, which involve moderate levels of violence and other activities such as drug trafficking, robbery, and car hijacking. Some tribes in Egypt are also involved in black or grey market activity. They are usually located in Sinai and the western desert.

Corruption remains a big issue in Egypt, with frequent cases of bribery and embezzlement. Criminal actors with connections to the government have been implicated in trafficking and sexual assault. Due to the military's strict control over the country, the state dominates society and the economy, including some of the criminal activity. Foreign criminal actors in Egypt include expats from Sudan, Libya, the Middle East, and Asia, as well as criminal groups involved in smuggling of people, human trafficking, drugs, and contraband. Efforts to combat human trafficking and smuggling have resulted in a slight reduction in foreign actors' involvement. Private sector actors in Egypt, such as entrepreneurs, have been found to engage in various types of crimes, particularly financial crimes, such as tax evasion, embezzlement of funds, fraudulent activities and corruption, which pervaded the economy in the country. There are also reports indicating terrorist financing provided by businessmen who are loyal to certain terrorist groups.

Leadership and governance

Political leadership and governance in Egypt have been stable in recent years, with a greater focus on public declarations than practical improvements. While the government has shown commitment to combating terrorism and organized crime on a regional and international level, this fight has also been used to justify arbitrary deprivation of liberty. Political dissent against the regime is harshly punished, with political opponents and activists facing persecution, arbitrary arrests, extrajudicial violence, and other forms of pressure. The government is committed to implementing cybersecurity strategies, but these policies are believed to be also used to control political dissent on some occasions. Corruption is still widespread at all levels of government and is a growing problem in the country. The lack of transparency and accountability is reflected in the weakness and ineffectiveness of official mechanisms for investigating and punishing corruption. The government's commitment to fighting corruption is also called into question due to its lack of transparency about spending and the military's budget and economic activities.

Egypt's international cooperation on law enforcement and criminal investigations is limited, with more focus on terrorism than organized crime. Nevertheless, the country has good bilateral cooperation with several countries. Moreover, Egypt has committed to intensifying bilateral and regional efforts to fight terrorist organizations and organized crime groups in the Sahel region. There have been recent efforts to strengthen counterterrorism strategies and military cooperation with Sudan, although this also has an ‘anti-Ethiopian’ element as a result of disputes over the Grand Ethiopian Renaissance Dam. Domestically, Egypt exhibits significant gaps in its crime legislation and legal framework, with no clear national strategy against organized crime. The government ratified laws criminalizing child marriage in 2022, but the law on cybercrime is largely used to suppress freedom of expression and criticism against the regime. Overall, international agreements and laws tend to have limited impact in practice in Egypt as the country is ruled by a military regime.

Criminal justice and security

Egypt's judicial system remains heavily influenced by the government, with the current president as the veto-wielding head of the Supreme Council for Judicial Bodies and Authorities. Unfair trials, arbitrary detentions, and convictions are used to suppress government critics, political opponents, and human rights activists. Charges of terrorism and death penalties are frequently employed to clamp down on the opposition, with extensive use of ‘rotation’ detentions. Refugees, asylum-seekers, and smuggled individuals are at higher risk of arbitrary detention and forced deportation in Egypt. Prisoners endure grave human rights violations, such as torture, ill-treatment, and illegal reprisals, with some groups more likely to be targeted by prison authorities. Prison officials regularly fail to provide adequate healthcare to prisoners, even after the COVID-19 outbreak. Despite calls to release political prisoners, Egypt is building a new prison complex in the Sinai region.

There are still critical issues related to law enforcement in Egypt, especially regarding the excessive use of force and arbitrary detentions. Egypt has been increasing its security efforts to maintain territorial integrity, such as building a second wall on the border with the Gaza Strip and boosting its military presence near the Rafah border crossing, in agreement with Israel. Nevertheless, the Sinai Islamist insurgency remains a big threat to Egyptian territorial integrity, as it continues to be a hot war zone with intermittent aircraft bombings and rebel attacks.

Economic and financial environment

The risk of money laundering in Egypt is moderate. Although competent authorities have overall access to financial and intelligence information, the types of money laundering activities investigated and prosecuted are not entirely consistent with the country's risk profile. Egypt is vulnerable to money laundering generated from drugs, arms, and human trafficking, with banking and real estate sectors being among the most affected. The low number of convictions shows that the penal system is not achieving its intended objective of deterring money laundering. Alternative measures for criminal justice are not implemented when possible to prosecute money laundering crimes and issue a conviction.

While Egypt has implemented recent reforms to improve tax and customs regulations, its economy has been affected by the war in Ukraine, resulting in a surge in prices and a ‘wheat crisis’. To address this, the government is implementing a new law that requires local growers to sell more than half of their annual harvest to the government, and many producers and intermediaries have already been arrested for allegedly smuggling grain to avoid this measure. Additionally, Egypt is working on building its first gold refinery to attract extra investments in mining following amended legislation.

Civil society and social protection

Egypt has tried to improve victim and witness support, particularly in addressing drug addiction in the country. The Fund for Drug Control and Treatment of Addiction is expanding its network of drug treatment centres, and the country has shown heightened efforts in identifying and protecting victims of human trafficking. However, there are still challenges, such as unidentified victims being penalized for crimes their traffickers force them to commit and inadequate services for male and foreign victims. Additionally, whistle-blowers are still being automatically arrested. While prevention efforts include awareness campaigns about drug addiction and the adoption of a national anti-human trafficking strategy, they have had limited impact due to a broader failed strategy.

The Egyptian government's targeting of NGOs and the media has resulted in a decline in press freedom and an increase in crackdowns and detentions of journalists. Egypt is considered to be lacking media freedom and is one of the largest jailers of journalists in the world. Prominent political and human rights activists are incarcerated as prisoners of conscience, and NGOs face restrictions under a stringent NGO law that became even more restrictive in 2021.