• A satellite image taken on June 26, 2020 shows a close-up view of the Grand Ethiopian Renaissance Dam on the Blue Nile. Maxar Technologies via Reuters
    A satellite image taken on June 26, 2020 shows a close-up view of the Grand Ethiopian Renaissance Dam on the Blue Nile. Maxar Technologies via Reuters
  • The construction site of the Grand Ethiopian Renaissance Dam in Guba in the North West of Ethiopia, seen in November 2017. AP
    The construction site of the Grand Ethiopian Renaissance Dam in Guba in the North West of Ethiopia, seen in November 2017. AP
  • The Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia. AFP
    The Grand Ethiopian Renaissance Dam on the Blue Nile River in Guba, northwest Ethiopia. AFP
  • An aerial view of water levels at the Grand Ethiopian Renaissance Dam in Guba, Ethiopia, 2020. AFP
    An aerial view of water levels at the Grand Ethiopian Renaissance Dam in Guba, Ethiopia, 2020. AFP
  • The Blue Nile River is seen as the Grand Ethiopian Renaissance Dam reservoir fills near the Ethiopia-Sudan border, in this broad spectral image taken on November 6, 2020. Reuters
    The Blue Nile River is seen as the Grand Ethiopian Renaissance Dam reservoir fills near the Ethiopia-Sudan border, in this broad spectral image taken on November 6, 2020. Reuters
  • The Grand Ethiopian Renaissance Dam has been a source of discord for years. AP
    The Grand Ethiopian Renaissance Dam has been a source of discord for years. AP
  • The GERD dam on the Blue Nile in Ethiopia has been under construction since 2011. EPA/MAXAR TECHNOLOGIES
    The GERD dam on the Blue Nile in Ethiopia has been under construction since 2011. EPA/MAXAR TECHNOLOGIES
  • The Grand Ethiopian Renaissance Dam on the Blue Nile River is considered by Ethiopia to be integral to its energy supply, but neighbouring countries say it jeopardises their own water resources. AFP
    The Grand Ethiopian Renaissance Dam on the Blue Nile River is considered by Ethiopia to be integral to its energy supply, but neighbouring countries say it jeopardises their own water resources. AFP
  • This frame grab from a video obtained from the Ethiopian Public Broadcaster (EBC) on July 20 and July 21, 2020 and released on July 24, 2020 shows an aerial view of water levels at the Grand Ethiopian Renaissance Dam in Guba, Ethiopia. AFP
    This frame grab from a video obtained from the Ethiopian Public Broadcaster (EBC) on July 20 and July 21, 2020 and released on July 24, 2020 shows an aerial view of water levels at the Grand Ethiopian Renaissance Dam in Guba, Ethiopia. AFP
  • A view of northwestern Ethiopia that focuses on the status of the Grand Ethiopian Renaissance Dam (GERD) and the Blue Nile River on July 11, 2020. AFP
    A view of northwestern Ethiopia that focuses on the status of the Grand Ethiopian Renaissance Dam (GERD) and the Blue Nile River on July 11, 2020. AFP
  • A handout satellite image shows a closeup view of the Grand Ethiopian Renaissance Dam (GERD) and the Blue Nile River in Ethiopia June 26, 2020. Maxar Technologies via Reuters
    A handout satellite image shows a closeup view of the Grand Ethiopian Renaissance Dam (GERD) and the Blue Nile River in Ethiopia June 26, 2020. Maxar Technologies via Reuters
  • The foreign ministers of Egypt, Ethiopia and Sudan will return to Washington this week for another round of talks to reach an agreement on the Grand Ethiopian Renaissance Dam after missing the deadline last month. Reuters
    The foreign ministers of Egypt, Ethiopia and Sudan will return to Washington this week for another round of talks to reach an agreement on the Grand Ethiopian Renaissance Dam after missing the deadline last month. Reuters
  • The Blue Nile river flows near the site of the planned Grand Renaissance Dam near Assosa in Ethiopia. AP
    The Blue Nile river flows near the site of the planned Grand Renaissance Dam near Assosa in Ethiopia. AP
  • The Grand Renaissance Dam hydroelectric project in Ethiopia. Egypt belives Adis Abbaba is being deliberatley slow in negotiations. William Lloyd George / AFP
    The Grand Renaissance Dam hydroelectric project in Ethiopia. Egypt belives Adis Abbaba is being deliberatley slow in negotiations. William Lloyd George / AFP
  • A combination picture of handout satellite images shows a view of the Grand Ethiopian Renaissance Dam (GERD) July 25, 2017 (top left), July 20, 2018 (top right), July 3, 2019 (bottom left), July 9, 2020 (bottom right) in Ethiopia, in these Sentinel-1 satellite imageries obtained by Reuters on July 14, 2020.
    A combination picture of handout satellite images shows a view of the Grand Ethiopian Renaissance Dam (GERD) July 25, 2017 (top left), July 20, 2018 (top right), July 3, 2019 (bottom left), July 9, 2020 (bottom right) in Ethiopia, in these Sentinel-1 satellite imageries obtained by Reuters on July 14, 2020.

Egypt calls for legally binding deal in dam dispute with Ethiopia


Hamza Hendawi
  • English
  • Arabic

Egypt on Wednesday called for a legally binding deal with Ethiopia over the Grand Ethiopian Renaissance Dam (Gerd), saying the Nile’s water is an “existential issue”.

Cairo fears the dam, which is nearly 80 per cent complete, would deeply reduce its vital share of the river's water.

Egyptian President Abdul Fattah El Sisi made the comments during talks in Cairo with Burundi's president, Evariste Ndayishimiye. Egypt and Burundi are among 11 countries covered by the Nile's drainage basin.

“It’s an existential issue that impacts the lives of millions of Egyptians,” Mr El Sisi said.

“It is necessary that a legally binding agreement regulating the filling and operation of the dam be reached as soon as possible away from unilateral actions that seek to create a fait accompli and ignore people’s basics rights.”

The Egyptian leader was referring to Ethiopia's intention to go ahead with a second and much larger filling of the Gerd in July, regardless of whether a deal has been reached with Egypt and fellow downstream nation Sudan.

Mr El Sisi has only once before described the Gerd's likely impact on Egypt's share of the Nile water as an existential issue.

The second filling will involve 13.5 billion cubic metres – nearly three times the size of the first filling last year.

That disrupted work in several of Sudan’s water treatment facilities but had no impact on Egypt, as flooding had filled its Aswan dam reservoir close to capacity.

Egypt and Sudan have for years been trying to persuade Ethiopia to enter a deal that governs the operation of the dam and puts in place mechanisms to resolve disputes and the handling of persistent drought.

Ethiopia says non-binding guidelines should be sufficient.

With a population of 100 million people almost entirely dependent on the Nile for fresh water, Egypt has been alarmed by the prospect of a deep cut in its share of the river’s water.

It fears a reduced share would wipe out tens of thousands of jobs and disrupt its delicate food supply system.

Sudan maintains that it could suffer deadly flooding and a disruption of its own power-generating Nile dams if Ethiopia did not share real-time data on the operation and filling of the dam, which stands less than 20 kilometres from its border with Ethiopia.

In response to Ethiopia’s perceived intransigence, Sudan and Egypt have been forging closer ties in recent months, exchanging top-level visits, building a rail link between the two nations and incorporating Sudan in Egypt’s electricity grid. The two have also signed a military co-operation pact.

Separately, Sudan and Ethiopia are locked in a border dispute that has led to a string of deadly clashes between the two sides that have raised the prospect of a border war.

The clashes followed a move by the Sudanese military late last year to wrest back control of a border enclave long settled by Ethiopian farmers and protected by federal troops and allied militias.

Ethiopia says it will not negotiate a resolution of the dispute until Sudan pulls out from the areas it has retaken. It has also accused the Sudanese military of escalating the dispute for the benefit of its Egyptian allies.

But Ethiopian Prime Minister Abiy Ahmed appeared to have softened his position on the dispute in comments made on Tuesday in Ethiopia's Parliament.

“Sudan has its own problems. So does Ethiopia. Faced with these difficulties, both need not go to war. It’s therefore better to solve the border conflict through dialogue,” Mr Abiy said.

The people of Sudan, he added, are “brothers who have been standing alongside us in every situation”.

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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