Egypt and Sudan sign defence pact and blame Ethiopia for stalled dam talks


Hamza Hendawi
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Egypt and Sudan on Tuesday signed a defence co-operation pact, sending Ethiopia a stern warning over what the two allies see as its intransigence on a border dispute with Khartoum and talks over Addis Ababa’s construction of a massive Nile dam.

Signed in Khartoum by the Sudanese and Egyptian chiefs of staff, the pact crowns months of increasingly closer relations between the militaries of the two countries, including a series of joint war games and high-level visits.

It came as Sudan’s Foreign Minister Mariam Al Mahdi met with her Egyptian counterpart in Cairo on Tuesday, when the pair blamed Ethiopia for stalled talks on the dam project and urged bringing in international parties into the talks to make progress.

Ms Al Sadeq, who met President Abdel Fatah El Sisi earlier on Tuesday, said the Egyptian pleader planned to visit Sudan “within days.” She gave no details.

Cairo’s backing for Sudan should come as boon for the Sudanese military, which has been involved in a series of increasingly provocative tit-for-tat incidents on the border with Ethiopia.

“We thank our brothers from the Egyptian armed forces for their good intentions, generous assistance and their strong support to overcome the present difficulties,” Sudan’s chief of staff, General Mohamed Othman Al Hussein, told the signing ceremony.

Also speaking at the ceremony, his Egyptian counterpart, General Mohammed Farid Hegazy, said little of the content of the joint defence pact but spoke at length about military and security co-operation between the two countries, including intelligence gathering and of the overlap of their national security.

He also reassured the Sudanese in crystal clear language that Egypt would not hesitate to quickly come to Sudan’s aid if needed.

“The resources, strong will and resolve are there to implement what we have agreed on to counter any emergency situations,” he said. “Egypt is ready to meet Sudan’s requests in all fields, including armament, joint training, technical support and securing joint borders,” he added, citing what he called the “gravity of dangers surrounding us.”

The comments by the two generals appear to go beyond rhetoric given the gravity and intractableness of the Sudan-Ethiopia border dispute and the quarrel over the Grand Ethiopian Renaissance Dam, or GERD.

At the talks in Cairo, Ms Al Mahdi and Sameh Shoukry, her Egyptian counterpart, urged more outside involvement in the GERD talks.

The pair urged the UN, EU and US to form a framework with the African Union chair – currently the Democratic Republic of Congo – to help restart and mediate the talks as a quartet.

The pair also described Addis Ababa’s unilateral decision to move forward with a second phase of filling the Renaissance Dam as a clear violation of earlier agreements

The Sudanese-Ethiopian border dispute has seen forces from both sides engage in several deadly clashes after the Sudanese military moved late last year to wrest back control of farmlands settled by members of Ethiopia’s Amhara ethnic group since the 1950s.

The two countries have since engaged in sabre rattling, accusing each other of border incursions, targeting civilians and massing up troops on the border.

Ethiopia has also claimed the Sudanese military was stoking the dispute for the benefit of Egypt, also at sharp odds with Addis Ababa over the likelihood that the GERD would deeply cut its vital share of the Nile waters.

Sudan has maintained that Ethiopia’s failure to share data on the operation of the dam, located less than 20 kilometres from the border, puts at risk the lives of 20 million Sudanese. It worries about deadly flooding and the possibility the dam could disrupt the work of its smaller power-generating dams on the Blue Nile.

Egypt has said the dam presents an existential issue and it would not stand idly by if Ethiopia tries to impose a de facto situation.

Ethiopia was expected to make good on its often-repeated threat to go ahead with a second filling of the dam in July, regardless of whether an agreement was reached with downstream Egypt and Sudan on the operation of the GERD.

The filling, involving about 13 billion cubic meters of water, could significantly set back efforts to find a peaceful resolution to the GERD dispute, handing Addis Ababa an unassailably strong position in future negotiations and again raising the prospect of a war that could destabilise the entire region.

While Sudan shares a border with Ethiopia, Egypt does not, a fact that would dictate the nature of any military involvement by the Egyptians in a future conflict.

But President El Sisi has been procuring billions of dollars’ worth of cutting-edge weapons over the past six years, some of which give his military the capability of operating beyond its borders.

A general-turned-president, Mr El Sisi has said that negotiations was the preferred method of resolving the dispute over the dam, but he never categorically ruled out military action.

The Grand Ethiopian Renaissance Dam - in pictures

The biog

Birthday: February 22, 1956

Born: Madahha near Chittagong, Bangladesh

Arrived in UAE: 1978

Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.

Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity

Motori Profile

Date started: March 2020

Co-founder/CEO: Ahmed Eissa

Based: UAE, Abu Dhabi

Sector: Insurance Sector

Size: 50 full-time employees (Inside and Outside UAE)

Stage: Seed stage and seeking Series A round of financing 

Investors: Safe City Group

Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix

GP3 qualifying, 10:15am

Formula 2, practice 11:30am

Formula 1, first practice, 1pm

GP3 qualifying session, 3.10pm

Formula 1 second practice, 5pm

Formula 2 qualifying, 7pm

Racecard

6pm: The Pointe - Conditions (TB) Dh82,500 (Turf) 1,400m

6.35pm: Palm West Beach - Maiden (TB) Dh82,500 (T) 1,800m

7.10pm: The View at the Palm - Handicap (TB) Dh85,000 (Dirt) 1,400m

7.45pm: Nakeel Graduate Stakes - Conditions (TB) Dh100,000 (T) 1,600m

8.20pm: Club Vista Mare - Handicap (TB) Dh95,000 (D) 1,900m

8.55pm: The Palm Fountain - Handicap (TB) Dh95,000 (D) 1,200m

9.30pm: The Palm Tower - Handicap (TB) Dh87,500 (T) 1,600m

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE