Cairo in the dark due to power cuts on Tuesday. Egypt has been facing electricity shortages since last summer. AFP
Cairo in the dark due to power cuts on Tuesday. Egypt has been facing electricity shortages since last summer. AFP
Cairo in the dark due to power cuts on Tuesday. Egypt has been facing electricity shortages since last summer. AFP
Cairo in the dark due to power cuts on Tuesday. Egypt has been facing electricity shortages since last summer. AFP

Egypt apologises for power cuts but plans to shut shops early to deal with crisis


Kamal Tabikha
  • English
  • Arabic

Egypt's Prime Minister Mostafa Madbouly has apologised for widespread power cuts that have hit the country as it deals with an intense heatwave.

“I renew the government's apology. We are fully aware of the extent of Egyptian families' suffering from the problem of electricity outages,” Mr Madbouly said in a televised address on Tuesday.

The Prime Minister also announced a series of measures aimed at easing the crisis, including the earlier closure of shops at 10pm each evening.

He said $1.18 billion would be allocated to tackle the power shortages during summer.

The funds will be used to import more natural gas and mazut, which are in short supply amid increased power consumption, Mr Madbouly said.

The ministries of petroleum and mineral resources, and electricity issued a joint statement apologising for the electricity crisis on Monday.

Despite co-ordination between the two ministries, the unusually high temperatures meant power cuts had to be extended by an hour, to three hours daily, until the end of the week to “maintain safe and stable operation of the gas network and power generation plants”, they said.

Mr Madbouly said President Abdel Fattah El Sisi had directed the government to deal with the situation and resolve it.

The Prime Minister assured the public that power cuts would end by the third week of July.

Backlash

Egyptians took to social media to criticise the government's apologies, where hashtags related to the electricity crisis and the heatwave have been the most talked-about subjects in the country this month.

Prominent figures accused the government of failing to do its job and called for those responsible to be held accountable.

“Why are you failures? (Turn off the lights),” said Nasser Amin, a prominent lawyer, in a post on X on Tuesday.

“This country went through a war for six years (67-73), a third of the Egyptian state's land was occupied, the enemy was 90km from Cairo, the enemy's aircraft were striking deep from Helwan to Aswan, and the government was asking people to turn off the lights during the attack, not cutting it off from them,” Mr Amin said, referring to the 1967 war and subsequent Israeli occupation of the Sinai peninsula.

Children in the dark during a power cut. Reuters
Children in the dark during a power cut. Reuters

Shops closed

Part of the government’s plan to deal with the crisis will be to shut down shops and malls from 10pm. Pharmacies and supermarkets are exempt from this directive, Mr Madbouly said.

The decision was criticised by Egyptians who said people typically stay out late during summer, with businesses staying open to cater to them.

The government attributed the crisis to unprecedented heatwaves in June, with temperatures exceeding 40°C, and even reaching 50°C in Aswan, putting enormous pressure on electricity consumption.

It also cited a technical malfunction in “gasfields in neighbouring countries” connected to Egypt's network, which caused a disruption in supply and forced energy authorities to increase power cuts to avoid a complete network collapse.

Egypt has been facing electricity shortages since last summer. At the time, Mr Madbouly said the government was prioritising exports to remedy a dollar crunch that has afflicted the economy since 2022.

Before the war, Israel was exporting about 800 million cubic feet of natural gas a day to Egypt.

THURSDAY'S FIXTURES

4pm Maratha Arabians v Northern Warriors

6.15pm Deccan Gladiators v Pune Devils

8.30pm Delhi Bulls v Bangla Tigers

The specs: 2018 Nissan Altima


Price, base / as tested: Dh78,000 / Dh97,650

Engine: 2.5-litre in-line four-cylinder

Power: 182hp @ 6,000rpm

Torque: 244Nm @ 4,000rpm

Transmission: Continuously variable tranmission

Fuel consumption, combined: 7.6L / 100km

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
LILO & STITCH

Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders

Director: Dean Fleischer Camp

Rating: 4.5/5

FA CUP FINAL

Manchester City 6
(D Silva 26', Sterling 38', 81', 87', De Bruyne 61', Jesus 68')

Watford 0

Man of the match: Bernardo Silva (Manchester City)

THE%20FLASH
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Andy%20Muschietti%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Sasha%20Calle%2C%20Ben%20Affleck%2C%20Ezra%20Miller%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Results
%3Cp%3E%0D%3Cstrong%3EElite%20men%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Amare%20Hailemichael%20Samson%20(ERI)%202%3A07%3A10%0D%3Cbr%3E2.%20Leornard%20Barsoton%20(KEN)%202%3A09%3A37%0D%3Cbr%3E3.%20Ilham%20Ozbilan%20(TUR)%202%3A10%3A16%0D%3Cbr%3E4.%20Gideon%20Chepkonga%20(KEN)%202%3A11%3A17%0D%3Cbr%3E5.%20Isaac%20Timoi%20(KEN)%202%3A11%3A34%0D%3Cbr%3E%3Cstrong%3EElite%20women%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Brigid%20Kosgei%20(KEN)%202%3A19%3A15%0D%3Cbr%3E2.%20Hawi%20Feysa%20Gejia%20(ETH)%202%3A24%3A03%0D%3Cbr%3E3.%20Sintayehu%20Dessi%20(ETH)%202%3A25%3A36%0D%3Cbr%3E4.%20Aurelia%20Kiptui%20(KEN)%202%3A28%3A59%0D%3Cbr%3E5.%20Emily%20Kipchumba%20(KEN)%202%3A29%3A52%3C%2Fp%3E%0A
Updated: June 26, 2024, 4:34 AM