CAIRO–A close associate and business partner of deposed Egyptian President Hosni Mubarak was arrested Thursday in Spain where he had fled during Egypt's recent uprising, according to MENA, the official Egyptian state news agency.

Hussein Salem, co-owner of the East Mediterranean Gas Company (EMG), an Israeli-Egyptian consortium, faces charges of corruption by Egypt's public prosecutor. Spanish authorities arrested him at his vacation home in Mallorca, Spain, on an international arrest warrant issued by Interpol, according...