Russian President Vladimir Putin and Egyptian President Abdel Fattah El Sisi. Reuters.
Russian President Vladimir Putin and Egyptian President Abdel Fattah El Sisi. Reuters.
Russian President Vladimir Putin and Egyptian President Abdel Fattah El Sisi. Reuters.
Russian President Vladimir Putin and Egyptian President Abdel Fattah El Sisi. Reuters.

After UN Ukraine war vote, Egypt strives to protect vital interests with Russia


Hamza Hendawi
  • English
  • Arabic

Live updates: follow the latest news on Russia-Ukraine

Egypt faces a complex task of protecting its economic and military interests with Moscow, after voting for a UN resolution condemning Russia’s invasion of Ukraine, analysts tell The National.

The effort, say analysts, will likely be hampered by continuing Western pressure on Egypt to be an active contributor to a US-led drive to damage Russia’s economic interests.

A country of 100 million people in the middle of an ambitious programme to modernise its economy and large military, Egypt can ill-afford to sacrifice its interests with Moscow and will strive to benefit from both camps, said the analysts.

“Egypt is having to deal with fallout on a number of fronts, including worries about crucial wheat imports, further blows to an already hard-hit tourism sector, foreign exchange reserve depletions, and an uncomfortable juggling of relations between Russia and the West,” wrote Mirette Mabrouk of the Middle East Institute on Friday.

  • Cars are left abandoned on a road as residents flee the town of Irpin, Ukraine after days of heavy shelling. Reuters
    Cars are left abandoned on a road as residents flee the town of Irpin, Ukraine after days of heavy shelling. Reuters
  • A Ukrainian soldier helps a family fleeing from Irpin. Reuters
    A Ukrainian soldier helps a family fleeing from Irpin. Reuters
  • A bus passes the Duke of Wellington statue, which has a traffic cone in the colours of the flag of Ukraine placed on top of it, in Glasgow, Scotland. AP
    A bus passes the Duke of Wellington statue, which has a traffic cone in the colours of the flag of Ukraine placed on top of it, in Glasgow, Scotland. AP
  • Ukrainian children sleep at the reception point at the train station in Przemysl, Poland. Reuters
    Ukrainian children sleep at the reception point at the train station in Przemysl, Poland. Reuters
  • Smoke rises as a Ukrainian soldier stands by the only escape route used by locals to flee from the town of Irpin. Reuters
    Smoke rises as a Ukrainian soldier stands by the only escape route used by locals to flee from the town of Irpin. Reuters
  • A man flees from Irpin. Reuters
    A man flees from Irpin. Reuters
  • A screengrab from footage released by the Russian Defence Ministry shows a purported Russian tank unit advancement in the Kyiv region. AFP
    A screengrab from footage released by the Russian Defence Ministry shows a purported Russian tank unit advancement in the Kyiv region. AFP
  • People walk on debris of residential buildings damaged by shelling in the Zhytomyr region. Reuters
    People walk on debris of residential buildings damaged by shelling in the Zhytomyr region. Reuters
  • A damaged residential building after Russian multiple rocket launchers shelled the area in the southern city of Mykolaiv. AFP
    A damaged residential building after Russian multiple rocket launchers shelled the area in the southern city of Mykolaiv. AFP
  • Ukrainian soldiers sit in their armoured vehicle after fighting against Russian troops and Russia-backed separatists near Zolote village, Luhansk region. AFP
    Ukrainian soldiers sit in their armoured vehicle after fighting against Russian troops and Russia-backed separatists near Zolote village, Luhansk region. AFP
  • A woman offers accommodation for people fleeing Ukraine at the main railway station in Berlin, Germany. Getty Images
    A woman offers accommodation for people fleeing Ukraine at the main railway station in Berlin, Germany. Getty Images
  • A soldier holds a helmet as a wedding crown during the ceremony for members of the Ukrainian Territorial Defence Forces Lesia Ivashchenko and Valerii Fylymonov, at a checkpoint in Kyiv. AP
    A soldier holds a helmet as a wedding crown during the ceremony for members of the Ukrainian Territorial Defence Forces Lesia Ivashchenko and Valerii Fylymonov, at a checkpoint in Kyiv. AP
  • Ukrainian soldiers carry a woman fleeing the town of Irpin. AP
    Ukrainian soldiers carry a woman fleeing the town of Irpin. AP
  • A factory and warehouse burn after being bombarded in Irpin. AP
    A factory and warehouse burn after being bombarded in Irpin. AP
  • Ukrainian soldiers near Zolote. AFP
    Ukrainian soldiers near Zolote. AFP
  • A Ukrainian refugee boy, wearing a blanket on his shoulders, warms his hands with a gas heater shortly after crossing the Siret border into northern Romania. EPA
    A Ukrainian refugee boy, wearing a blanket on his shoulders, warms his hands with a gas heater shortly after crossing the Siret border into northern Romania. EPA
  • People demonstrate against the Russian military operation in Ukraine in Buenos Aires, Argentina. EPA
    People demonstrate against the Russian military operation in Ukraine in Buenos Aires, Argentina. EPA
  • First responders work at the scene after a missile hit a building at Havryshivka Vinnytsia International Airport in Vinnytsia, Ukraine. Reuters
    First responders work at the scene after a missile hit a building at Havryshivka Vinnytsia International Airport in Vinnytsia, Ukraine. Reuters
  • A woman at a checkpoint on the road to Kyiv after her evacuation from a nearby town. AFP
    A woman at a checkpoint on the road to Kyiv after her evacuation from a nearby town. AFP
  • A placard in the Ukrainian colours is held up at an anti-war demonstration the Bebelplatz square in Berlin, Germany. Reuters
    A placard in the Ukrainian colours is held up at an anti-war demonstration the Bebelplatz square in Berlin, Germany. Reuters
  • A Ukrainian serviceman helps an elderly woman in Irpin, 20 kilometres north-west of the capital Kyiv. AP Photo
    A Ukrainian serviceman helps an elderly woman in Irpin, 20 kilometres north-west of the capital Kyiv. AP Photo
  • Protesters cry during a demonstration in support of Ukraine at the Plaza Catalunya square in Barcelona. AFP
    Protesters cry during a demonstration in support of Ukraine at the Plaza Catalunya square in Barcelona. AFP
  • A man walks past a machine gun at a checkpoint next to the last bridge on the road that connects the town of Stoyanka to the outskirts of Ukraine's capital Kyiv. AFP
    A man walks past a machine gun at a checkpoint next to the last bridge on the road that connects the town of Stoyanka to the outskirts of Ukraine's capital Kyiv. AFP
  • Ukrainian servicemen put a wounded man on a stretcher in Irpin. AP Photo
    Ukrainian servicemen put a wounded man on a stretcher in Irpin. AP Photo
  • People board a train to return to Ukraine after getting supplies in Zahony, Hungary. AP Photo
    People board a train to return to Ukraine after getting supplies in Zahony, Hungary. AP Photo
  • Balloons in the colors of Ukraine during a demonstration against the Russian attack on Ukraine, in Mainz, Germany. AP
    Balloons in the colors of Ukraine during a demonstration against the Russian attack on Ukraine, in Mainz, Germany. AP
  • A Ukrainian girl helps to weave a camouflage net for the Ukrainian army, in Odesa. EPA
    A Ukrainian girl helps to weave a camouflage net for the Ukrainian army, in Odesa. EPA
  • Molotov cocktails prepared by a group of volunteers in Odesa. Hundreds are made every day. EPA
    Molotov cocktails prepared by a group of volunteers in Odesa. Hundreds are made every day. EPA
  • Ukrainian servicemen assist people fleeing the town of Irpin after crossing the Irpin River on an improvised path under a bridge that was destroyed by a Russian air strike. AP Photo
    Ukrainian servicemen assist people fleeing the town of Irpin after crossing the Irpin River on an improvised path under a bridge that was destroyed by a Russian air strike. AP Photo
  • A woman holds a dog while crossing the Irpin River on an improvised path under a bridge that was destroyed by a Russian airstrike, while assisting people fleeing the town of Irpin, Ukraine. AP Photo
    A woman holds a dog while crossing the Irpin River on an improvised path under a bridge that was destroyed by a Russian airstrike, while assisting people fleeing the town of Irpin, Ukraine. AP Photo
  • Marina Yatsko and her boyfriend Fedor comfort each other at a hospital in Mariupol after her 18-month-old son Kirill was killed by shelling. AP Photo
    Marina Yatsko and her boyfriend Fedor comfort each other at a hospital in Mariupol after her 18-month-old son Kirill was killed by shelling. AP Photo
  • Ukrainian civilians receive weapons training in a cinema in Lviv, western Ukraine. AP Photo
    Ukrainian civilians receive weapons training in a cinema in Lviv, western Ukraine. AP Photo
  • Residents flee the town of Irpin, near Kyiv, Ukraine. AP Photo
    Residents flee the town of Irpin, near Kyiv, Ukraine. AP Photo
  • Ukrainian soldiers carry a sick woman as civilians flee Irpin, on the outskirts of Kyiv, after Russian attacks. AP Photo
    Ukrainian soldiers carry a sick woman as civilians flee Irpin, on the outskirts of Kyiv, after Russian attacks. AP Photo
  • Captured Russian soldiers at a press conference in the Interfax news agency in Kyiv, Ukraine. AP Photo
    Captured Russian soldiers at a press conference in the Interfax news agency in Kyiv, Ukraine. AP Photo
  • Ukrainians beneath a destroyed bridge in Irpin. AP Photo
    Ukrainians beneath a destroyed bridge in Irpin. AP Photo
  • A woman fleeing Ukraine on a bus near the border crossing in Korczowa, Poland. AP Photo
    A woman fleeing Ukraine on a bus near the border crossing in Korczowa, Poland. AP Photo
  • A Ukrainian soldier and a militia man help a fleeing family on the outskirts of Kyiv, Ukraine, on March 5, 2022. AP Photo
    A Ukrainian soldier and a militia man help a fleeing family on the outskirts of Kyiv, Ukraine, on March 5, 2022. AP Photo
  • Smoke rises after shelling by Russian forces in Mariupol. AP Photo
    Smoke rises after shelling by Russian forces in Mariupol. AP Photo
  • People at a hospital during shelling by Russian forces in Mariupol. AP Photo
    People at a hospital during shelling by Russian forces in Mariupol. AP Photo
  • Displaced Ukrainians at the Resurrection New Athos Monastery in the western Ukrainian city of Lviv. AFP
    Displaced Ukrainians at the Resurrection New Athos Monastery in the western Ukrainian city of Lviv. AFP

“Egypt has extensive and convoluted ties with both Russia and the West and it would be counter-productive to step to one side or another.”

Egypt is no stranger to being caught in the middle of Russian-American rivalry, having spent most of the second half of the last century seeking, albeit with limited success, to walk a middle course between East and West during the Cold War.

But the task may prove to be much more difficult this time round, say the analysts.

A US ally since the 1970s, Egypt has in recent years inched closer to Russia, which has sold Cairo cutting-edge weapons and agreed to build its first nuclear power station.

Modern-day relations date back to the 1950s, when the Soviet Union sold Egypt its first shipment of weapons after army officers seized power in 1952 and replaced the monarchy with a left-leaning regime.

The two countries remained close allies until 1972, when then president Anwar Sadat threw out thousands of Russian military advisers and later took Egypt to the US camp, cutting off virtually all ties with the Kremlin. Relations with the Kremlin shifted between being fraught with tension and lukewarm for years, until President Abdel Fattah El Sisi took office in 2014.

Bread is a staple for the majority of Egypt's 100 million people. Egypt is the world's largest wheat importer, with 50 per cent of what it buys on world markets coming from Russia. EPA
Bread is a staple for the majority of Egypt's 100 million people. Egypt is the world's largest wheat importer, with 50 per cent of what it buys on world markets coming from Russia. EPA

The world’s largest wheat importer, Egypt, relies on Russia for 50 per cent of its imports of the grain, which last year stood at about 13 million tonnes.

The two countries have also been co-ordinating policy on Libya, Egypt’s war-torn neighbour.

They are also bound by the 2018 comprehensive partnership and strategic co-operation agreement which, among other things, entails regular talks between the two countries’ defence and foreign ministers.

Egypt is also a popular destination for Russian tourists. Hundreds of thousands of Russians visited each year, before a plane flying to St Petersburg crashed in the Sinai Peninsula in 2015, killing all 224 people on board in a suspected terror attack.

“These interactions [with Russia] will likely continue, albeit there may be some regression of tourism, which is still recovering from the impact of the coronavirus pandemic,” said Mohamed Anis Salem, a retired career diplomat who sits on the Egyptian Council for Foreign Affairs.

“There may be some difficulties resulting from the Western sanctions on Russia but we can assume that there will be solutions that ensure continuity.”

Sanctions controversy

On account of the potential risk to these interests, Egypt followed its UN General Assembly vote on Wednesday with a statement designed to reassure the Russians.

Read at the General Assembly by its permanent representative, the statement emphasised the need to find a political solution to the Ukraine conflict and admonished the West for adopting economic sanctions against Moscow outside the umbrella of the UN.

“Egypt opposes the method of employment of economic sanctions outside international mechanisms… past experiences [of sanctions] have had extremely negative effects” on ordinary people, said the statement.

The vote followed days of deliberations at the highest level in Cairo, said officials who closely monitored the process, with Egypt initially inclined to abstain. Cairo shifted to vote in favour when it became clear that the resolution would be overwhelmingly supported, they said.

Moreover, Egypt’s foreign policy, they explained, has a long and proven track record of firmly siding with international law and against military actions not sanctioned by the UN. There was also intense pressure from the US and its European allies on Egypt in the days leading to the vote.

“Egypt was very exposed because it did not want to simply follow the US line. It likes to have this diversified approach to policy and the US has been willing to tolerate that,” said Michael Hanna, the New York-based US programme director in the International Crisis Group.

“For Egypt to abstain would have been taken as effectively siding with Russia; and as much as Egypt wanted to hedge it, that would have proven problematic for Cairo. It would have raised fundamental questions about our relationship,” he said.

“But Egypt can find a safe haven from possible admonishment or reproach by Russia in the sheer large number of nations [141] that voted in favour of the resolution.”

The Egyptians have long complained that Washington has consistently denied them some of the cutting-edge weapons they need, prompting them to shop elsewhere, including deals to buy Russia’s SU-35 fighter jets, despite Washington’s opposition. Egypt’s large imports of Russian wheat have also been justified on account of their low prices compared to what's on offer from the US.

Egypt, meanwhile, receives $1.3 billion annually in US military aid and the two countries maintain a high level of security co-operation and intelligence-sharing, since they drew closer after Egypt signed a peace treaty with Israel in 1979.

However, Cairo’s relations with Washington have frequently been bumpy, mostly over US criticism of Cairo’s human rights record.

Significantly, President El Sisi has yet to be invited to Presidsent Joe Biden’s White House, although relations between the two leaders have thawed after Egypt helped mediate a cease-fire between Hamas and Israel last May.

The US recently suspended $130 million in military aid to Egypt, again citing Cairo’s rights record. It marked the second time the US has taken such action in less than a decade.

“It took some time and a lot of work to get past the relationship’s fraught stage. It is not an easy relationship and it took a lot of work to get it where it is now,” said Mr Hanna, adding that considerable tension would have been placed on relations had Egypt abstained on Wednesday.

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Series info

Test series schedule 1st Test, Abu Dhabi: Sri Lanka won by 21 runs; 2nd Test, Dubai: Play starts at 2pm, Friday-Tuesday

ODI series schedule 1st ODI, Dubai: October 13; 2nd ODI, Abu Dhabi: October 16; 3rd ODI, Abu Dhabi: October 18; 4th ODI, Sharjah: October 20; 5th ODI, Sharjah: October 23

T20 series schedule 1st T20, Abu Dhabi: October 26; 2nd T20, Abu Dhabi: October 27; 3rd T20, Lahore: October 29

Tickets Available at www.q-tickets.com

Stat Fourteen Fourteen of the past 15 Test matches in the UAE have been decided on the final day. Both of the previous two Tests at Dubai International Stadium have been settled in the last session. Pakistan won with less than an hour to go against West Indies last year. Against England in 2015, there were just three balls left.

Key battle - Azhar Ali v Rangana Herath Herath may not quite be as flash as Muttiah Muralitharan, his former spin-twin who ended his career by taking his 800th wicket with his final delivery in Tests. He still has a decent sense of an ending, though. He won the Abu Dhabi match for his side with 11 wickets, the last of which was his 400th in Tests. It was not the first time he has owned Pakistan, either. A quarter of all his Test victims have been Pakistani. If Pakistan are going to avoid a first ever series defeat in the UAE, Azhar, their senior batsman, needs to stand up and show the way to blunt Herath.

England's Ashes squad

Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes. 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

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UAE currency: the story behind the money in your pockets
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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'Gehraiyaan'
Director:Shakun Batra

Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa

Rating: 4/5

Company profile

Name: GiftBag.ae

Based: Dubai

Founded: 2011

Number of employees: 4

Sector: E-commerce

Funding: Self-funded to date

Updated: March 07, 2022, 6:26 AM