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* Ex-Brotherhood candidate picks up Salafi vote

* Former Arab League has been frontrunner in polls

* Generals have led bumpy transition

* Change in Egypt has ripple effects across region

By Edmund Blair and Sherine El Madany

CAIRO, April 30 (Reuters) – Egypt enters the last stage of

its first democratic presidential race on Monday with its field

narrowing to a two-horse race between the urbane former head of

the Arab League and a charismatic Islamist medic jailed for

years under Hosni Mubarak.

A poll published in state-run al-Ahram daily on Monday

showed veteran diplomat Amr Moussa in the lead, followed by

Abdel Moneim Abol Fotouh, who has emerged in recent days as the

leading Islamist candidate after securing the support of the

ultra-conservative Salafist movement.

Both men are well ahead of 11 other candidates and, for now,

look the most likely to face each other in a second round. That

would give Egyptians a stark choice about the future of the Arab

world’s most populous state.

Moussa, 75, served for a decade as Mubarak’s foreign

minister before taking over the leadership of the Arab League,

and must win over voters sceptical of the old elite.

Abol Fotouh, 60, grew to prominence in the 1970s as a

student activist opposing Egypt’s military rulers and was jailed

in the 1990s as a member of the Muslim Brotherhood, which he

split from last year. He needs to maintain the support of

Islamists, while reassuring secular Egytians he will not impose

a radical transformation on society.

Monday marked the official start of campaigning for the

election, although candidates have been canvassing voters for

months. A first round will be held on May 23-24, followed by an

expected second round run-off in June.

Though they appear to be the clear leaders, it is still not

certain Moussa and Abol Fotouh will make it to the second round:

many voters are undecided and polls have no track record of

accuracy. The Muslim Brotherhood has a candidate challenging

Abol Fotouh for Islamist votes, and can never be written off.

“Nobody can talk about forecasts because in Egypt there are

no scientific opinion polls. They are all impressions,” senior

Brotherhood official Essam El-Erian told reporters.

The election could prove to be one of the most important

turning points in the Arab Spring of revolts that swept across

the region since last year, bringing down the leaders of

Tunisia, Libya and Yemen as well as Egypt’s Mubarak.

Egypt’s revolution has been an unfinished project. Since

Mubarak was swept out by popular protest, generals have ruled

uneasily, their tenure punctuated by bouts of violence,

political quarrels and spiralling economic decline.

In recent days, unrest has rattled ties with Saudi Arabia,

once a close ally. The West is closely watching the race in the

first Arab state to make peace with Israel.

UNPRECEDENTED SPECTACLE

Moussa has generally led in the polls till now, benefitting

from better name recognition than others. Abol Fotouh’s growing

appeal could make the race tighter. Some may yet be swayed by

the unprecedented spectacle of a televised debate between the

top candidates, the first of which is scheduled for Thursday.

Islamists have been on the rise since Mubarak fell. The

Muslim Brotherhood, banned under Mubarak, won parliamentary

elections four months ago, followed by the Salafists, who call

for an even stricter reading of Islamic law.

Abol Fotouh broke away from the Muslim Brotherhood last year

when it initially said it would not field a candidate.

He has solidified his position as the leading Islamist in

the race by securing the backing of the ultra-conservative

Salafists, but portrays himself as a moderate, keen to reassure

secular Egyptians and Christians they have nothing to fear. He

has played up issues of economic and social justice and promised

to increase health and education spending.

“It’s the Egyptian mainstream I am banking on, the ones I

have been working to win over since I started my campaign, who

make up more than 90 percent of Egyptians … who understand

sharia (Islamic law) correctly,” he said in an April 23

television interview. “Wherever we look out for people’s

interests, we serve them, we are implementing God’s law.”

Abol Fotouh long clashed with the Brotherhood’s leadership

by advocating a more open approach to Egyptians from different

social, political and religious backgrounds. Leading Salafis

have acknowledged ideological differences with him, but have

been drawn to a charismatic figure whose break with the

Brotherhood gave him credibility as an independent voice.

Some liberals and more secular-minded Egyptians have also

rallied behind him. Unlike Moussa, he has no links to Mubarak’s

era. But many Egyptians remain suspicious that he still holds

ties to the Brotherhood that could surface in his presidency.

The Brotherhood reversed its decision not to field a

candidate, but its first choice was barred from standing. Its

replacement candidate, Mohamed Mursi, has a low profile so far

and starts well behind in polls, but stands yet to gain from the

support of the Brotherhood’s unrivalled grassroots organisation.

Senior Brotherhood official Mahmoud Ghozlan said rank and

file Salafis could still back Mursi, even though their leaders

picked Abol Fotouh.

As the largest group in the new parliament, the Brotherhood

has clashed with the military rulers over who should appoint the

cabinet, and with other Islamists and liberals over the make-up

of a 100-member panel drafting a constitution, now stalled.

OLD GUARD, NEW GUARD

Moussa, who became popular with ordinary Egyptians as head

of the Cairo-based Arab League, has to fight accusations by

Islamists that he is a member of Mubarak’s old guard.

“The question is not old guard or new guard. The question is

either you were part of the corrupt people that have done a lot

of harm to the country or among the people who have worked and

done their duty according to the highest standard they could

do,” Moussa told Reuters last year early in campaigning.

Many Egyptians fondly remember how Moussa regularly

criticised Israeli policies and in 2003 warned against the

U.S-led invasion of Iraq, saying it would “open the gates of

hell.”

He benefits from fear of religious radicalism. Asked about

his Islamist rivals last week, Moussa said Egyptians should “not

get into an experiment that has not been tried before.”

While Egypt has limped through the political transition, the

economy has taken a nose-dive. Foreign reserves have plunged and

talks with the International Monetary Fund on a loan facility

seen as vital for restoring confidence have foundered.

Egypt’s economic prospects may have taken a further hit on

Saturday when Saudi Arabia, a long-time ally of Mubarak and

potential donor, recalled its ambassador over protests outside

its embassy against the Saudi arrest of an Egyptian lawyer.

“The current crisis between Egypt and Saudi Arabia will be

contained, given the solid relations between the two countries

which transcend any problem,” Planning and International

Cooperation Minister Faiza Abu el-Naga said on Sunday.

(Additional reporting by Tamim Elyan, Ali Abdelatti and Tom

Perry; Writing by Edmund Blair; Editing by Peter Graff)