Egyptian President Abdel Fattah El Sisi said widening the Israel-Gaza conflict 'is not in the interest of the region'. EPA
Egyptian President Abdel Fattah El Sisi said widening the Israel-Gaza conflict 'is not in the interest of the region'. EPA
Egyptian President Abdel Fattah El Sisi said widening the Israel-Gaza conflict 'is not in the interest of the region'. EPA
Egyptian President Abdel Fattah El Sisi said widening the Israel-Gaza conflict 'is not in the interest of the region'. EPA

El Sisi reassures Egyptians as war rages next door in Gaza


Hamza Hendawi
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Live updates: Follow the latest news on Israel-Gaza

President Abdel Fattah El Sisi on Saturday sought to reassure Egyptians alarmed that the war next door in the Gaza Strip could expand to engulf their nation.

"Egypt is a very strong nation that cannot be touched,” Mr El Sisi said in televised comments.

“It's important that you don't worry. The Egyptian state, thanks to its people, youths and army is capable of totally protecting the homeland.”

Egypt shares borders in the Sinai Peninsula with both Gaza and Israel, with which it signed a peace treaty in 1979. The Palestinian militant group Hamas, which has ruled Gaza since 2007, ignited the war when it went on a deadly rampage in southern Israel on October 7, killing at least 1,400 including children and women.

Israel responded with a devastating air campaign that has killed more than 7,000 people and displaced more than a million of the Gaza Strip's 2.3 million residents. It has also slapped a total blockade on Gaza, depriving residents of water, electricity, food, fuel and medicines.

Several convoys of humanitarian aid have entered Gaza from Egypt in the past week, but the UN says the amount delivered is a fraction of what is actually needed.

The Egyptian president's comments came a day after Cairo announced that two drones travelling north from the southern reaches of the Red Sea were shot down.

One drone hit the coastal Sinai town of Taba, injuring at least six people, and the debris of the other fell in an uninhabited section of the port town of Noweiba, according to an Egyptian military spokesman.

Both towns are on the Red Sea's Gulf of Aqaba, not far from the Israeli city of Eilat at the gulf's northern tip.

Buildings destroyed in Khan Yunis during Israeli air strikes in the southern Gaza Strip on Friday. Getty Images
Buildings destroyed in Khan Yunis during Israeli air strikes in the southern Gaza Strip on Friday. Getty Images

Neither the military spokesman nor Mr El Sisi said where the drones were launched from or by whom, but suspicion pointed to Yemen's Iranian-backed Houthi forces who have in the past used drones to attack Gulf Arab states.

“Regardless of where they came from, it [the attack] underlines my previous warning that widening the conflict is not in the interest of the region. The region will be like a ticking time bomb that will hurt all of us,” Mr El Sisi said.

The area of Egypt's Sinai Peninsula bordering Israel and Gaza was already tense before the drones incident.

An Egyptian border tower was hit by a stray Israeli shell last week, injuring nine soldiers, two seriously. Israel apologised for the incident.

Egypt says Israel has struck the Gaza side of its border with the coastal strip four times, putting the Rafah border crossing out of operation. Egyptian crews repaired the damage at least twice before aid supplies began to flow through into Gaza on October 21.

Pro-Palestinian demonstrators wave flags outside the Mostafa Mahmoud mosque in Cairo following Friday prayers. Bloomberg.
Pro-Palestinian demonstrators wave flags outside the Mostafa Mahmoud mosque in Cairo following Friday prayers. Bloomberg.

The incidents have stoked anger in Egypt over what Mr El Sisi has described as an ill-advised “collective punishment” of Gaza.

The Israeli onslaught also triggered popular drives to collect aid for Gaza and a boycott of US businesses such as Starbucks and McDonald's in response to Washington's support for Israel, its closest Middle East ally.

Street vendors now sell Palestinian flags in many parts of Cairo, sports teams routinely take group photos before and after games while hoisting the flag, and Palestinian national colours have also flooded the accounts of many Egyptian social media users since the war began three weeks ago.

Street protests, a rarity since Mr El Sisi came to power in 2013, have been held across the country to denounce Israel's bombardment of Gaza and express support for the Palestinians.

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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Updated: October 29, 2023, 6:10 AM