Egyptian furniture production has declined around 50 per cent over the last four months due to timber theft and unrest in handicraft-producing areas like Darb Al-Ahmar, says Mohsen El-Tagouri, deputy head of the timber division in Cairo's Chamber of Commerce.

El-Tagouri told Ahram newspaper that the recession in the construction sector is having an effect on demand for materials. Timber imports have fallen around 30 per cent, influenced by the reluctance of banks to extend credit and the decline of the Egyptian pound against the dollar, he said.

El-Tagouri added that Egypt's building contractors are concerned about the state of the construction industry post-Mubarak.

Members of the ousted president's former regime had close links to the real estate sector and introduced a number of large-scale residential projects, some of which have been frozen.