British exporters worry over Egyptian unrest

Businesses trading with Egypt were on red alert today, following violent scenes on the streets of the capital Cairo.

It is by far Britain's biggest trading partner in the region, according to the British Egyptian Chamber of Commerce, which estimates UK assets in the country total some $25 billion (£15.71 billion).

The two countries' imports and exports with each other amounted to about £2 billion in 2010, highlighting how Egypt is of far greater commercial importance to the UK than other flashpoints in the area.

Taher El Sherif, secretary general of the BECC, said: "Future business links are, I would say, stagnant.

"The decision maker is no longer there. The government has lost its credibility. For the moment, new business will be only done in the very short term."

He said UK trade with Egypt in areas such as textiles, oil and gas, banking, telecoms, insurance and shipping were currently unaffected.

Shares in travel companies operating in the region fell again, with TUI Travel off 3% and Thomas Cook down 2% this afternoon.

Shares on the Cairo stock market tumbled 10%, taking its fall for the year to almost 20%.

Credit rating agency Fitch cut its outlook on the country to negative from stable but did not take the step of downgrading it - a move which, if followed by other agencies, would make borrowing more expensive for the Egyptian government.