• Ethiopia's Grand Renaissance Dam under construction on September 26, 2019. Reuters
    Ethiopia's Grand Renaissance Dam under construction on September 26, 2019. Reuters
  • Ethiopia's Grand Renaissance Dam under construction on September 26, 2019. Reuters
    Ethiopia's Grand Renaissance Dam under construction on September 26, 2019. Reuters
  • A water basin near Ethiopia's Grand Renaissance Dam. Reuters
    A water basin near Ethiopia's Grand Renaissance Dam. Reuters
  • Turbine housings at Ethiopia's Grand Renaissance Dam powerhouse. Reuters
    Turbine housings at Ethiopia's Grand Renaissance Dam powerhouse. Reuters

Egypt and Sudan military chiefs meet in Khartoum as Nile dam crisis looms


Hamza Hendawi
  • English
  • Arabic

The chief of staff of Egypt's army and his Sudanese counterpart have held talks in Khartoum, Sudan’s armed forces said in a statement early on Thursday.

Gen Mohammed Farid Hegazy and Sudan’s Gen Mohammed Othman Al Hussein met at an air base in the Sudanese capital late on Wednesday night, the statement said, but did not divulge the content of the talks.

Gen Hegazy stopped in Khartoum on his way back home from the Democratic Republic of Congo, which currently chairs the African Union.

Egypt and Sudan have forged close military ties in recent months, signing a co-operation agreement and holding a series of joint war games. Gen Hegazy has been a frequent visitor to Sudan.

The two have long been locked in a bitter dispute with Ethiopia, Sudan’s eastern neighbour, over a massive hydroelectric dam Addis Ababa is building on the Nile less than 20 kilometres from the Sudanese border.

Egypt says the dam could deeply cut its share of the Nile waters, wiping out hundreds of thousands of jobs in its agriculture sector and threatening its food security.

Sudan has warned that Ethiopia must co-ordinate on the operation and filling of the dam to prevent flooding in its eastern region and ensure its own power-generating Nile dams function normally.

Separately, Sudan and Ethiopia are at loggerheads over a border dispute in which Khartoum claims that Addis Ababa is occupying an enclave of fertile farmland where it has allowed farmers to settle under its protection. The dispute led to deadly clashes late in 2020 and early this year.

The growing military co-operation between Sudan and Egypt has meanwhile fed speculation that the two allies were prepared to resort to military action to resolve the dispute over the Grand Ethiopian Renaissance Dam, or GERD.

Egypt, which has a far larger and better equipped military than Sudan, has warned of “unimaginable instability” if it was denied a drop of its share of the water. President Abdel Fatah El Sisi also said no one should think they are out of the reach of his country’s powerful military.

But Egypt has not publicly raised the prospect of military action since April.

Sudan has ruled out military action, but wrote to the UN Security Council this week asking that the GERD issue be discussed by the 15-member body.

Ethiopia insists the GERD is key to its development, arguing that the 6,000-megwatt dam will lift millions of its people out of poverty. It has often claimed over 10 years of fruitless negotiations with Egypt that the GERD is an issue of national sovereignty.

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

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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