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Military and Political Power in Face of COVID-19

acy of Armed Forces’ involvement in political and economic activities, without upsetting the quality of the civil government work in public sectoThe infinite number of local crises instigated by the COVID-19 pandemic renewed the old debate on the political and economic role of the armed forces, within the civil state. This ongoing debate has been exploring the sweet spot of balance between the two political principles of “the democratic control of armed forces” versus “the untraditional roles of armed forces.” That is the question on the legitimr, and without hurting market economy and competitiveness among private sector businesses.
The current dynamics of the unique relationship between the military institution and civil government in Egypt is an excellent arena to explore this debate. The vast scope of political power and economic autonomy enjoyed by the military institution did not delay state’s quest to democratic development, as much as it contributed to enhancing the mission of the civil government to provide citizens with basic goods and services, while crushing threats to state’s security and welfare. Armed forces’ state of autonomy, at least in Egypt’s case, has proven to be a safety valve in the times of crises and a parallel vein for economic growth in the times of affluence.
Since the beginning of the Coronavirus crisis, in Egypt, in late February, the government has spared no endeavor to contain the biological crisis and reduce its economic and political consequences on the lives of ordinary citizens. In contrast, the private sector businesses failed to aid the government in managing the crisis. They deliberately abused the state of panic among the people to increase their profits by practicing monopoly over basic medical and food commodities. Even worse, some famous businesspersons blamed the government for forcing a lockdown to preserve peoples’ lives. One Egyptian business tycoon said in a recent press interview that he would rather “see some people die than seeing the country going through bankruptcy as a result of the economic paralysis.”
It did not take long for the armed forces to intervene to settle this clash between public and private sectors and reassure the panicked citizens. On the first week of April, President El-Sisi met with senior leaders of the armed forces, and the meeting was broadcast live on national television. The purpose of the meeting was to showcase the measures taken by the Armed Forces’ National Service Projects Organization (NSPO) to assist the civil government throughout this crisis, while halting private sector monopoly over food and medical commodities. At the end of the meeting, President El-Sisi, addressing his speech to the public citizens, stated that the purpose of this review is to “explore the readiness of the armed forces to assist the civil government in this crisis, and to assure the Egyptians that there is a ‘parallel arrangement’ ready to satisfy people’s needs.”
This is not the first time for the armed forces to intervene to save Egyptians in times of economic or political crises. Some examples, to list a few, are the military bias to people’s political will in 2013 revolution against the Muslim Brotherhood regime, and in 2011 revolution against Mubarak regime. Even before that, under the long decades of Mubarak’s rule, the military played a tremendous role in keeping strong ties with international allies outside the diplomacy of the dictator regime, and in providing economic relief for the people, in compensation to the failure of the corrupt government; as for example, in the 1992 crisis of a rare earthquake and the 2008 crisis of the lack of bread.
Also, this is not the first time for the private sector businesses to abuse national crises in manipulating the market for their profit. In the early days of applying the economic reform plan, in 2016, the private sector doubled and tripled the prices of commodities for no clear reason. As a result, a large number of middle class families were threatened to lose their purchase power and fall into poverty. However, the armed forces’ NSPO intervened, just on the right time, to provide basic commodities to the public for fair prices, saving the majority of citizens from an ill fate caused by private sector greediness.
Rather than appreciating the role of the military institution in enhancing Egypt’s economy, the private sector tycoons and some academic experts indulge into blaming the military institution for the incompetency of the private sector. They claim that military’s NSPO providing products to the market is putting private businesses’ products in a situation of unfair competition. That is due to the cheaper prices that give NSPO’s commodities a competitive advantage over the private sector’s over-priced commodities. In response, President El-Sisi announced, in November, that the armed forces’ NSPO is willing to offer shares of its affiliated companies, through the Egyptian Exchange Market, for interested investors from the private sector. Instead of seizing the opportunity to refresh their businesses and boost the market, many business-owners marked the president’s initiative as an attempt to shed the military umbrella over the private sector.
This ongoing academic, and mostly-theoretical, debate on the feasibility and legitimacy of armed forces’ political and economic autonomy does not appear to come to a clear conclusion soon. Likewise, Egypt’s economic conflict of interests between the military institution and civil government, on one side, versus the private sector businesses, on the other side, does not seem to be settled in the near future. However, most of the citizens, in most countries, highly appreciate, through practical experience, the significance of the untraditional roles of the armed forces, alongside the civil government, in times of crises as much as in times of abundance.
by : Dalia Ziada
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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