Egypt's President Abdel Fattah El Sisi praised Japan's support for his government's development projects after a meeting on Sunday with Japanese Prime Minister Fumio Kishida.
Mr Kishida, who is heading his country's delegation at a three-day Egypt-Japan summit in Cairo, held talks with Mr El Sisi at the Al Ittihadiya Presidential Palace, where the two leaders later addressed a joint press conference.
Mr El Sisi singled out Tokyo’s contributions to the yet-to-be-opened Grand Egyptian Museum and co-operation on improving Egypt's education system, while also inviting more Japanese investment in the country.
Egypt began introducing Tokkatsu, a holistic education system developed in Japan, at some schools in 2018, while the Egypt-Japan University for Science and Technology, a joint project between the nations and a number of African countries, began receiving students in 2020.
“These as well as numerous other projects are an attest to the friendship between both our countries,” Mr El Sisi said.
He said foreign investment in Egypt was one of the main topics discussed with the Japanese Prime Minister.
“I have shown Mr Kishida all the economic and legislative reforms we have implemented to improve the investment climate in Egypt over the past few years,” Mr El Sisi said.
“I invite the Japanese government to encourage Japanese companies to bring more investments to Egypt.”
Mr Kishida said he and Mr El Sisi had agreed their countries should co-operate to bring back civilian rule to Sudan, where a war has broken out between the armed forces and a rival paramilitary group.
Condemning the war in Ukraine, Mr Kishida said he had also agreed with Mr El Sisi to “uphold rules-based international order” with regards to Russia’s invasion of Ukraine, which he said was as "an outrageous act that shakes the very foundations of the international order".
"As a country that has suffered atomic bombings in war, Japan never accepts the threat of nuclear weapons by Russia and they should never be used," he said.
Mr Kishida took office in 2021, following the assassination of Shinzo Abe, a three-time prime minister under whose leadership relations between Tokyo and Cairo grew significantly.
He told reporters before leaving Japan that one of the main objectives of his tour was to build up support for Ukraine ahead of the annual G7 summit on May 19-21. Japan, which holds the G7 presidency this year, will host the summit in the city of Hiroshima.
While Mr Kishida has been vocal about his intentions to rally countries against Moscow's aggression in Ukraine, particularly in the global south, African countries including Egypt have taken a neutral stance on the war to preserve their economic ties with Russia.
Although Egypt and Japan have always enjoyed good bilateral relations, their ties were taken to “broader horizons” in 2015, according to a statement from Japan’s embassy in Egypt.
In January, Japan’s Ambassador to Egypt Oka Hiroshi met with Egypt's minister of public enterprises to discuss expanding economic co-operation between the countries.
Japan’s foreign direct investments in Egypt have doubled over the past year, Mr Hiroshi said in January, highlighting a keenness on the part of Japanese companies to expand into more sectors of the Egyptian economy.
Egypt’s imports from Japan totalled about $709 million in 2022, according to the United Nations Comtrade database on international trade. The most imported item was motor vehicles.
Egyptian exports to Japan totalled about $238 million during the same period, with the fuel oil and other petroleum products making up around $181 million.
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
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
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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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
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The biog
Name: Dr Lalia Al Helaly
Education: PhD in Sociology from Cairo
Favourite authors: Elif Shafaq and Nizar Qabbani.
Favourite music: classical Arabic music such as Um Khalthoum and Abdul Wahab,
She loves the beach and advises her clients to go for meditation.
The five pillars of Islam
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
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