The prime minister has held informal talks with the president of Egypt.

During a two-hour private dinner, Tony Blair and Hosni Mubarak are understood to have discussed issues including the threat of global terrorism, the ongoing situation in Iraq and the Middle East peace process.

The meeting, held at the Red Sea resort of Sharm el-Sheikh where the Blairs are currently holidaying, follows the prime minister's downbeat New Year message, in which he cited Iraq, al Qaeda, the Middle East and North Korea as key concerns for world security.

"I cannot recall a time when Britain was confronted, simultaneously, by such a range of difficult and, in some cases, dangerous problems," he said, naming the world economy and global security as his "twin concerns."

"Whether we survive and prosper or decline in the face of this insecurity depends crucially on the political decisions Britain now takes."

However, politicians from all sides criticised his message.

"I do get a faint feeling that he is trying to divert attention away on to the international side...from all the problems that are going to be domestically for him," said Conservative deputy leader Michael Ancram.

Liberal Democrat leader Charles Kennedy urged Blair to "pay more attention to what is happening here at home", but to ensure that UN inspectors were given adequate time in Iraq before any military action is taken.

Former Labour chancellor, Lord Healey, warned the prime minister not to repeat the mistakes of Conservative prime minister Sir Anthony Eden, who declared war in the Middle East over the Suez crisis in 1956.