• A satellite image shows the Grand Ethiopian Renaissance Dam on the Blue Nile river in July, 2020. Maxar Technologies via AP
    A satellite image shows the Grand Ethiopian Renaissance Dam on the Blue Nile river in July, 2020. Maxar Technologies via AP
  • The project - which began in 2011 - has become a flashpoint between Ethiopia and several of its neighbours. Maxar Technologies via Reuters
    The project - which began in 2011 - has become a flashpoint between Ethiopia and several of its neighbours. Maxar Technologies via Reuters
  • For Ethiopia, the dam will make a huge difference to power generation, doubling annual output and connecting millions of Ethiopian families to the grid. AFP
    For Ethiopia, the dam will make a huge difference to power generation, doubling annual output and connecting millions of Ethiopian families to the grid. AFP
  • Egypt maintains that the dam on the Blue Nile, the River Nile's main tributary, will jeopardise its water supply. AFP
    Egypt maintains that the dam on the Blue Nile, the River Nile's main tributary, will jeopardise its water supply. AFP
  • The $4 billion is about 90 per cent completed. Maxar Technologies via Reuters
    The $4 billion is about 90 per cent completed. Maxar Technologies via Reuters
  • An aerial view Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia, on the 20th July. AFP
    An aerial view Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia, on the 20th July. AFP

Egypt's President El Sisi says 'no one can come' near Nile waters


Hamza Hendawi
  • English
  • Arabic

President Abdel Fattah El Sisi has told Egyptians that a large dam being built by Ethiopia on the Nile will not reduce Egypt’s share of the river's water.

“No one can come near Egypt’s water," Mr El Sisi said late on Monday.

"How? We talk, we employ diplomacy and patience," he said, without addressing recent comments by Ethiopian officials that Addis Ababa was open to resuming talks on the Grand Ethiopian Renaissance Dam.

The last round of talks between Ethiopia, Egypt and Sudan on the hydroelectric dam, in April last year, broke down amid a flurry of acrimonious comments by officials from the three Nile basin nations that have a combined population of about 250 million.

Meanwhile, Egypt has embarked on large water conservation projects that will make the maximum use of the Nile’s water, Mr El Sisi said.

The most populous Arab nation depends on the river for more than 90 per cent of its fresh water needs.

President Abdel Fattah El Sisi says Egypt has embarked on water conservation projects that will make the maximum use of the Nile’s water. AP
President Abdel Fattah El Sisi says Egypt has embarked on water conservation projects that will make the maximum use of the Nile’s water. AP

"I have done everything that could be done," he said. "I was patient, gave a chance and worked with what I have to maximise its use.”

Egypt has repeatedly said that a reduction in its share of the Nile waters, currently at about 55 billion cubic metres, could wipe out hundreds of thousands of jobs in its large agriculture sector and upset its delicate food balance at a time when its population is increasing by more than two million every year.

Sileshi Bekele, Ethiopia’s former negotiator on the dam and the country’s ambassador to the US, expressed earlier this month Addis Ababa’s interest in the resumption of the talks during a meeting with the new US special envoy to the Horn of Africa, Mike Hammer.

Ethiopia’s foreign ministry cited the ambassador as highlighting “Ethiopia’s interest to resume the African Union-led trilateral negotiation over the GERD”.

Blue and White Nile rivers

Egypt and Sudan, its southern neighbour, have long insisted that Ethiopia must enter a legally binding agreement on the filling and running of the $5 billion dam on the Blue Nile, which contributes more than 80 per cent of the combined water volume after joining the White Nile in northern Sudan.

Sudan maintains that real-time data on the dam’s operation would spare it from floods and ensure work at its own power-generating dams on the Blue Nile isn't disrupted.

A satellite image dating back to May 2020 of the Grand Ethiopian Renaissance Dam on the Blue Nile. AP
A satellite image dating back to May 2020 of the Grand Ethiopian Renaissance Dam on the Blue Nile. AP

Ethiopia says the electricity generated by the dam, the largest in Africa, will lift millions out of poverty and allow the impoverished Horn of Africa nation to tap its vast natural resources.

It refuses to enter a legally binding deal on the dam, arguing that recommendations should be sufficient.

Addis Ababa has also rejected proposals by Cairo and Khartoum that the World Bank, the EU and the US be involved in the talks as mediators.

In February, Ethiopia said it had started producing power from one unit of the dam and is set for a third filling of the water reservoir behind the dam this summer during the peak of the flood season.

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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

Updated: June 14, 2022, 9:39 AM