Egypt is preparing to be at the centre of the political spotlight when the Cop27 global summit begins on Sunday.
The UN climate change talks come at a time when the most populous Arab nation faces tough economic choices ― caused in part by the fallout from the Russia-Ukraine war and the coronavirus pandemic before it.
During the two-week gathering in the Red Sea resort of Sharm El Sheikh, Egypt will mostly wear its African hat and assume the role of the standard bearer for a continent struggling to persuade the industrialised West to give it the funds it needs to transition from fossil fuels and adapt to climate change.
It will also seize the opportunity to highlight its potential in the fight against climate change. The country has rapidly expanded its use of renewable and clean energy and has signed multibillion-dollar deals to produce green fuel.
The November 6-18 summit is expected to attract 45,000 delegates, including 100 heads of state and governments ― among them US President Joe Biden and British Prime Minister Rishi Sunak.
Hosting such a large gathering for a milestone event has already boosted Egypt's international profile and afforded it the chance to show its role as a regional power enjoying close ties in its neighbourhood and beyond.
But there has also been criticism of Egypt's rights record at a time when Cairo is focused on ensuring that the summit produces tangible results in the fight against climate change while also battling an economic crisis chiefly caused by the fallout from the Russia-Ukraine war and the coronavirus pandemic.
President Abdel Fattah El Sisi has said criticism of the country's human rights record overlooks the leaps made in health, power projects and the many billions of dollars spent on infrastructure to provide the 104 million Egyptians with decent housing, education and access to medical care.
Separate from the climate summit, Mr El Sisi has launched a national dialogue and released government critics in an outreach to his opponents as he works towards political inclusion after years of being reluctant to carry out reforms.
Mr El Sisi, a former army general in office since 2014, has revived a presidential commission mandated to look at the cases of thousands of critics in pre-trial detention. At least 1,000 detainees have been freed since the president first called for a national dialogue in April.
In a call before Cop27, US Secretary of State Antony Blinken spoke with Egyptian Foreign Minister Sameh Shoukry and welcomed the news that "significant numbers of political detainees" were being released.
He "voiced support for additional such pardons and releases, as well as for steps to strengthen due process of law and protections for fundamental freedoms for all," the US State Department said.
Civil society say they can't access Cop27 - in pictures
The government has not linked the dialogue to the climate summit. It said some political reforms could not be carried out earlier during Mr El Sisi’s rule because of the national security threat posed by terrorism.
Some rights groups have claimed that climate change activists will stay away from this year's Cop summit because they cannot secure accreditation or afford hotel room charges that have significantly gone up in the run-up to the Sharm El Sheikh summit.
It was an issue also raised by Mr Blinken in his call with Mr Shoukry, as the US official touched on the "critical contributions of civil society, including to a successful Cop27."
The Egyptian government has rejected the activists' claims, saying it’s making efforts to ensure civil society groups can participate meaningfully and that it has set aside a venue in Sham El Sheikh for protesters to gather.
Wael Aboul Magd, the special representative for the Egyptian Cop27 presidency, said organisers would ensure civil society groups are able to participate in all activities except for the negotiating process, which is open only to country delegates.
“We’ve exerted every effort to ensure their presence,” he told reporters at a recent briefing. “We’re doing a lot to ensure meaningful participation.”
Authorities also denied charges that they had enabled hotels to sharply increase room rates for Cop27.
The government, Mr Aboul Magd said, is subsidising “a few thousand rooms” in two and three-star 2 hotels and hostels. Rooms will have “a very low cost to ensure there are no impediments stopping people from coming,” he said.
“The Egyptian government understands and appreciates that with hosting the climate summit comes responsibilities,” said Negad Borai, a veteran rights lawyer and a member of the national dialogue’s board of trustees.
“That Egypt has been selected to host the summit is an international recognition that it’s a stable nation that can protect a conference of this size and in the process endure criticism.”
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The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
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The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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