• A satellite image shows the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia on Tuesday, July 28, 2020. Maxar Technologies via AP
    A satellite image shows the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia on Tuesday, July 28, 2020. Maxar Technologies via AP
  • A satellite image of the Grand Ethiopian Renaissance Dam and reservoir behind it on June 26, 2020. Maxar Technologies via Reuters
    A satellite image of the Grand Ethiopian Renaissance Dam and reservoir behind it on June 26, 2020. Maxar Technologies via Reuters
  • A satellite image of the Grand Ethiopian Renaissance Dam and reservoir behind it 16 days later on July 12, 2020. Maxar Technologies via Reuters
    A satellite image of the Grand Ethiopian Renaissance Dam and reservoir behind it 16 days later on July 12, 2020. Maxar Technologies via Reuters
  • The Grand Ethiopian Renaissance Dam and the Blue Nile River in Ethiopia on July 12, 2020. Maxar Technologies via Reuters
    The Grand Ethiopian Renaissance Dam and the Blue Nile River in Ethiopia on July 12, 2020. 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
  • 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
  • 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

Construction delays extend negotiation window for Nile dam talks


Hamza Hendawi
  • English
  • Arabic

Ethiopia’s second filling of its disputed Nile dam this summer will involve a much smaller amount of water than previously announced due to construction delays, experts said on Wednesday.

The reduction – from 13.5 billion cubic metres to around 2bn – is likely to defuse some of the tension between Ethiopia and downstream Egypt and Sudan.

They have repeatedly stated their opposition to the second filling without first reaching an agreement on the dam's operation.

The reduced filling could have a positive impact on negotiations for a comprehensive resolution of the dispute over the Grand Ethiopian Renaissance Dam, or Gerd.

“Egypt and Sudan now have a year in which they can chart a new strategy,” said Hany Raslan, a senior Africa expert from Egypt’s Al Ahram Centre for Political and Strategic Studies research institute.

The middle section of the dam must be built up to 590 metres above sea level if Ethiopia is to store 13.5bn cubic metres in July and August, the peak of the flood season.

That section currently stands at about 560 metres above sea level and it is virtually impossible to raise it to the required height before the flood season comes to an end, Mr Raslan said.

There has been no official word from Addis Ababa on the volume of water to be stored in the second filling, with officials insisting only that it will go ahead as scheduled.

Egypt and Sudan have been pressing Ethiopia for years to enter a legally-binding deal on operating and filling the dam, as well as mechanisms to deal with future droughts and disputes.

Ethiopia, which has mostly dealt with the issue as a matter of sovereignty, says guidelines should suffice.

The last round of talks broke down acrimoniously in April, with the three nations engaging in hardline rhetoric immediately afterwards and Cairo and Khartoum making thinly veiled threats of possible military action.

"The question of a second filling without an agreement will remain unacceptable to Egypt and Sudan, but I believe there will not be much of an outcry because it will involve much less water," said Attia Essawi, an Africa expert who has been writing on Horn of Africa and Sudan issues for decades in Egypt's state-owned Al Ahram daily.

Last year's first filling involved about 5bn cubic metres and was carried out without Addis Ababa giving Cairo and Khartoum prior notice.

Egypt was not impacted by that filling because the reservoir behind its Aswan High Dam on the Nile was near full capacity, thanks to plentiful rainfall on Ethiopia’s highlands – the source of the Blue Nile, by far the river’s biggest tributary.

Things were different for Sudan, however.

The filling affected farming and disrupted work at water treatment facilities, leaving thousands of homes without running water for days.

"Water treatment plants in Sudan will certainly be affected again by the second filling and the government in Khartoum will condemn Ethiopia for doing it without first co-ordinating the move," said Mr Essawi.

"But, on the whole, the reaction will be much calmer than last year."

Egypt’s foreign minister last month raised eyebrows when he told a television interviewer that his country was “confident” the second filling would not “impact on Egypt’s water interests”.

"If no harm comes to us, then we will continue to deal with matters without escalation," Sameh Shoukry said.

Speaking in another television interview a few days later, he shifted the focus from the impact of the second filling to the perceived audacity of Ethiopia taking unilateral action.

“Surely, if the second filling is done unilaterally and without a comprehensive deal on the filling and operation of the dam … then Ethiopia will be in breach of international law,” said Mr Shoukry, who travelled to Khartoum on Wednesday with Egypt's Water Resources Minister Mohamed Abdel Atti for talks on the issue.

Sudan and Egypt have forged close military ties in recent months, launching a series of joint war drills and signing a military co-operation agreement.

The war games appeared designed to send a message to Ethiopia that military action was on the table if an agreement remained elusive.

The message was not lost on Ethiopia, whose military chiefs have been speaking to local media about beefed up air defences at the dam's site, which is only 20 kilometres from the Sudanese border.

The Americans are primarily concerned with preventing Ethiopia from breaking up, not with the dispute over the dam

But experts say Egypt continues to view the military option as a last resort because of the regional repercussions and the questions over how effective such action would be..

Sudan, for its part, has little appetite for fighting a neighbour with which it maintains close social and cultural ties.

Egypt, meanwhile, has been trying to woo sub-Saharan Nile basin nations, offering military and security co-operation deals, plus technical support in a wide range of fields.

These efforts are partially designed to pull them away from Ethiopia's sphere of influence in the region andsecure their goodwill in the event of military action over the Gerd.

President Abdel Fattah El Sisi has said diplomacy was Egypt’s preferred path to resolve the dispute, but warned that Cairo was not prepared to be bogged down in “indefinite” negotiations.

No one should presume to be beyond the reach of the Egyptian military, he warned in March.

But US involvement in talks can’t be relied on to assist Egypt, Mr Raslan said. Ending the humanitarian situation in Ethiopia’s Tigray region, where a civil war between separatist rebels and federal troops has raged since November, is a higher priority.

“The Americans are primarily concerned with preventing Ethiopia from breaking up, not with the dispute over the dam,” said Mr Raslan.

“They are also pressuring Egypt not to take military action against the dam.”

First Person
Richard Flanagan
Chatto & Windus 

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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

Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

Generational responses to the pandemic

Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:

Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.

Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.

Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.

Dubai World Cup nominations

UAE: Thunder Snow/Saeed bin Suroor (trainer), North America/Satish Seemar, Drafted/Doug Watson, New Trails/Ahmad bin Harmash, Capezzano, Gronkowski, Axelrod, all trained by Salem bin Ghadayer

USA: Seeking The Soul/Dallas Stewart, Imperial Hunt/Luis Carvajal Jr, Audible/Todd Pletcher, Roy H/Peter Miller, Yoshida/William Mott, Promises Fulfilled/Dale Romans, Gunnevera/Antonio Sano, XY Jet/Jorge Navarro, Pavel/Doug O’Neill, Switzerland/Steve Asmussen.

Japan: Matera Sky/Hideyuki Mori, KT Brace/Haruki Sugiyama. Bahrain: Nine Below Zero/Fawzi Nass. Ireland: Tato Key/David Marnane. Hong Kong: Fight Hero/Me Tsui. South Korea: Dolkong/Simon Foster.

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.