Students study for their high school certificate exams at the Library of Alexandria during the rolling electricity power cuts introduced by Egyptian authorities to compensate for a shortage of fuel for its power stations. Reuters
Students study for their high school certificate exams at the Library of Alexandria during the rolling electricity power cuts introduced by Egyptian authorities to compensate for a shortage of fuel for its power stations. Reuters
Students study for their high school certificate exams at the Library of Alexandria during the rolling electricity power cuts introduced by Egyptian authorities to compensate for a shortage of fuel for its power stations. Reuters
Students study for their high school certificate exams at the Library of Alexandria during the rolling electricity power cuts introduced by Egyptian authorities to compensate for a shortage of fuel fo

Egypt's energy crisis unleashes rare wave of criticism


Hamza Hendawi
  • English
  • Arabic

Exacerbated by scorching summer temperatures, Egypt’s rolling power cuts have unleashed a wave of criticism of the government on social media with a fearlessness unseen since President Abdel Fattah El Sisi took the helm 10 years ago.

The criticism has caused a flood of posts on pro-government accounts with messages that vary between praise for Mr El Sisi’s leadership and achievements and stern warnings against action that could bring instability.

They also called for unity in the face of national security threats posed by conflicts raging in Egypt’s neighbours and explained the criticism away as part of a malicious campaign of rumours.

The power cuts have hit a sector long touted by Mr El Sisi and his government as a success story.

In 2018, Egypt and German giant Siemens said they had added 14.5 gigawatts to the power grid by upgrading power plants and building new ones, in a record-breaking two-and-a-half years.

That alone is more than half of Iraq's electricity production capacity, but it is failing to meet soaring demand.

In a nation where 30 per cent of its 106 million people live in poverty, according to official figures, the power cuts have deepened the suffering of millions struggling in the face of skyrocketing prices, a plummeting currency and reduced state subsidies on goods and services.

“Whoever wants to destroy his nation because of the price of gas, bread and milk should not worry because these items will be available free of charge in refugee camps,” declared one post from a pro-government Facebook account, echoing often repeated comments by Mr El Sisi that instability would plunge the county into chaos.

West Cairo natural gas electrical power station in the skyline of Giza, the twin city of Egypt's capital. AFP
West Cairo natural gas electrical power station in the skyline of Giza, the twin city of Egypt's capital. AFP

The criticism on social media has gone beyond frustration over the power cuts and even economic woes, touching on the wider question of how Egypt has been ruled since the military seized power in a 1952 coup.

“The people have been harvesting non-stop defeats, political, economic and civilisational setbacks since the republic was founded in 1953 and that’s because of one key reason: The absolute powers of presidents,” Anwar El Hawary, possibly the most outspoken of all government critics on social media, wrote on Facebook.

Some of Mr El Sisi’s supporters have joined the critics in vilifying the government, but with the important caveat that it is Prime Minister Mostafa Madbouly and his cabinet to blame, not the president, although he has supreme power.

Legislator Mustafa Bakry, a television talk show host and a staunch supporter of Mr El Sisi, has been at the forefront of efforts to discredit the critics while absolving the president of any responsibility.

His argument is partially founded on the notion that Mr El Sisi, a former army general who runs the economy down to the smallest detail, has not received the help he needs to translate his vision into action.

“The [Egyptian] people can only endure so much and had it not been for their faith in the political leadership [Mr El Sisi] they would not have remained silent,” said Mr Bakry.

“We have a skipper [Mr El Sisi] who is a patriot. You can say whatever you want but he has been unlucky, surrounded by challenges and problems from every direction while only a handful of people are sincerely lending him a helping hand.”

People cool off by the River Nile at night during high temperatures in Cairo, Egypt. Bloomberg.
People cool off by the River Nile at night during high temperatures in Cairo, Egypt. Bloomberg.

Speaking at an Egypt-EU investment conference in Cairo on Saturday, Mr El Sisi also appeared to be absolving himself and his government of responsibility for the economic crisis. He cited the Covid pandemic, the Russia-Ukraine war and the Gaza conflict as the main contributors to the country’s financial woes.

The furore over the power cuts is being played out against a backdrop of a severe economic crisis – some say it is the worst in memory – that critics chiefly blame on what they say is reckless borrowing, high spending on mega infrastructure projects that are unnecessary or could have waited given the dire state of key sectors like health and education.

Mr El Sisi says the new infrastructure, including thousands of kilometres of motorway, is vital to maintain economic momentum in the coming years.

The Egyptian pound has lost two-thirds of its value since early 2022. Servicing the country’s foreign debt, which stands at $160 billion, or over three times government revenue, eats up much of the country’s foreign currency earnings.

A bailout package worth about $50 billion from the IMF, World Bank, the EU and Gulf nations saved the country from a complete meltdown this year.

On Saturday, European companies declared their intention to sign deals potentially worth more than $42.85 billion, according to European Commission President Ursula von der Leyen. But the implementation timeline for these investments is uncertain.

It is unclear why authorities have so far tolerated the more outspoken posts by government critics. One explanation gaining traction is the government had no choice but to allow critics to vent, to prevent popular discontent from boiling over into unrest on the streets.

A greengrocer at his Cairo market stall. EPA
A greengrocer at his Cairo market stall. EPA

A shortage of diesel and natural gas to run the country’s power stations at full capacity is behind the electricity crisis.

The government had argued that the power cuts – lasting three hours a day but reportedly twice as long in some places – save the treasury hundreds of millions of dollars that would have otherwise been spent buying diesel and natural gas for power stations.

Egyptians have been asked to endure the power cuts for the good of the nation. The cuts, which began a year ago, initially lasted an hour and were later extended to two. Last week, the cuts were increased to three hours, coinciding with one of several heatwaves.

Mr El Sisi has repeatedly defended the cuts as a small sacrifice, warning that Egyptians will have to pay twice or three times what electricity is costing them now if they want uninterrupted power.

However, many Egyptians saw the cuts as an inexplicable and inexcusable dereliction of the government’s duty to deliver a basic service.

The prime minister, meanwhile, recently told Egyptians they should consider themselves lucky because other countries in the region suffered much longer cuts.

His comments were widely interpreted as insensitive, but his tone changed dramatically after the state-controlled media last week reported that the president had ordered the government to end the electricity crisis.

“The subject of electricity is very sensitive to us as officials because we empathise with the people’s suffering regardless of how long the power cuts last,” he told a nationally televised news conference after apologising to Egyptians.

Egyptian President Abdel Fattah El Sisi. UAE Presidential Court.
Egyptian President Abdel Fattah El Sisi. UAE Presidential Court.

“We were all sad to take the decision to extend the power cuts to three hours … our overwhelming concern now is to get through this crisis,” said Mr Madbouly, who took office six years ago.

Mr El Sisi was full of praise for Egyptians on Saturday, commending them on their perseverance.

“Egyptians are a strong and steadfast people who faced huge challenges that were absolutely not of their making,” he said.

“I would like to greet every Egyptian, man and woman, who are recently enduring life's hardships and rising prices,” he said in an address on Sunday.

Critics, meanwhile, are taking issue with the president’s decision to keep Mr Madbouly as prime minister after he dismissed the government nearly four weeks ago.

“What worries me the most is the narrative adopted by the official media that the new government will be an extension of the outgoing one and that it must build on the same policies and the successes already achieved,” said Ziad Bahaa El Deen, a former deputy prime minister who was in charge of the economy.

“If we are convinced that the management of the economy in recent years was successful and that it’s imperative, even necessary, to build on its achievements, then there is no hope for economic improvement.”

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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

What are the GCSE grade equivalents?
 
  • Grade 9 = above an A*
  • Grade 8 = between grades A* and A
  • Grade 7 = grade A
  • Grade 6 = just above a grade B
  • Grade 5 = between grades B and C
  • Grade 4 = grade C
  • Grade 3 = between grades D and E
  • Grade 2 = between grades E and F
  • Grade 1 = between grades F and G
How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

About RuPay

A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank

RuPay process payments between banks and merchants for purchases made with credit or debit cards

It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.

In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments

The name blends two words rupee and payment

Some advantages of the network include lower processing fees and transaction costs

UAE v United States, T20 International Series

Both matches at ICC Academy, Dubai. Admission is free.

1st match: Friday, 2pm

2nd match: Saturday, 2pm

UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Rameez Shahzad, Amjad Gul, CP Rizwan, Mohammed Boota, Abdul Shakoor, Ahmed Raza, Imran Haider, Sultan Ahmed, Zahoor Khan, Amir Hayat

USA squad: Saurabh Netravalkar (captain), Jaskaran Malhotra, Elmore Hutchinson, Aaron Jones, Nosthush Kenjige, Ali Khan, Jannisar Khan, Xavier Marshall, Monank Patel, Timil Patel, Roy Silva, Jessy Singh, Steven Taylor, Hayden Walsh

SPEC%20SHEET%3A%20APPLE%20IPHONE%2014%20PRO%20MAX
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%206.7%22%20Super%20Retina%20XDR%20OLED%2C%202796%20x%201290%2C%20460ppi%2C%20120Hz%2C%202000%20nits%20max%2C%20HDR%2C%20True%20Tone%2C%20P3%2C%20always-on%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20A16%20Bionic%2C%206-core%20CPU%2C%205-core%20GPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%206GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECapacity%3A%3C%2Fstrong%3E%20128%2F256%2F512GB%20%2F%201TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20iOS%2016%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%3A%3C%2Fstrong%3E%20Triple%2048MP%20main%20(f%2F1.78)%20%2B%2012MP%20ultra-wide%20(f%2F2.2)%20%2B%2012MP%20telephoto%20(f%2F2.8)%2C%206x%20optical%2C%2015x%20digital%2C%20Photonic%20Engine%2C%20Deep%20Fusion%2C%20Smart%20HDR%204%2C%20Portrait%20Lighting%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%20video%3A%3C%2Fstrong%3E%204K%20%40%2024%2F25%2F30%2F60fps%2C%20full-HD%20%40%2025%2F30%2F60fps%2C%20HD%20%40%2030fps%2C%20slo-mo%20%40%20120%2F240fps%2C%20ProRes%20(4K)%20%40%2030fps%3B%20night%2C%20time%20lapse%2C%20cinematic%2C%20action%20modes%3B%20Dolby%20Vision%2C%204K%20HDR%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%3A%3C%2Fstrong%3E%2012MP%20TrueDepth%20(f%2F1.9)%2C%20Photonic%20Engine%2C%20Deep%20Fusion%2C%20Smart%20HDR%204%2C%20Portrait%20Lighting%3B%20Animoji%2C%20Memoji%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%20video%3A%3C%2Fstrong%3E%C2%A04K%20%40%2024%2F25%2F30%2F60fps%2C%20full-HD%20%40%2025%2F30%2F60fps%2C%20slo-mo%20%40%20120%2F240fps%2C%20ProRes%20(4K)%20%40%2030fps%3B%20night%2C%20time%20lapse%2C%20cinematic%2C%20action%20modes%3B%20Dolby%20Vision%2C%204K%20HDR%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%204323mAh%2C%20up%20to%2029h%20video%2C%2025h%20streaming%20video%2C%2095h%20audio%3B%20fast%20charge%20to%2050%25%20in%2030min%3B%20MagSafe%2C%20Qi%20wireless%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%2C%20Bluetooth%205.3%2C%20NFC%20(Apple%20Pay)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBiometrics%3A%3C%2Fstrong%3E%20Face%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Lightning%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP68%2C%20dust%2Fsplash%2Fwater%20resistant%20up%20to%206m%20up%20to%2030min%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECards%3A%3C%2Fstrong%3E%20Dual%20eSIM%20%2F%20eSIM%20%2B%20eSIM%20(US%20models%20use%20eSIMs%20only)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Deep%20purple%2C%20gold%2C%20silver%2C%20space%20black%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20iPhone%2014%20Pro%20Max%2C%20USB-C-to-Lightning%20cable%2C%20one%20Apple%20sticker%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Dh4%2C699%20%2F%20Dh5%2C099%20%2F%20Dh5%2C949%20%2F%20Dh6%2C799%3C%2Fp%3E%0A
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs

Price, base: Dh228,000 / Dh232,000 (est)
Engine: 5.7-litre Hemi V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 552Nm
Fuel economy, combined: 12.5L / 100km

Five healthy carbs and how to eat them

Brown rice: consume an amount that fits in the palm of your hand

Non-starchy vegetables, such as broccoli: consume raw or at low temperatures, and don’t reheat  

Oatmeal: look out for pure whole oat grains or kernels, which are locally grown and packaged; avoid those that have travelled from afar

Fruit: a medium bowl a day and no more, and never fruit juices

Lentils and lentil pasta: soak these well and cook them at a low temperature; refrain from eating highly processed pasta variants

Courtesy Roma Megchiani, functional nutritionist at Dubai’s 77 Veggie Boutique

What are the influencer academy modules?
  1. Mastery of audio-visual content creation. 
  2. Cinematography, shots and movement.
  3. All aspects of post-production.
  4. Emerging technologies and VFX with AI and CGI.
  5. Understanding of marketing objectives and audience engagement.
  6. Tourism industry knowledge.
  7. Professional ethics.
Section 375

Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat

Director: Ajay Bahl

Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL

Rating: 3.5/5

FIGHT CARD

Fights start from 6pm Friday, January 31

Catchweight 82kg
Piotr Kuberski (POL) v Ahmed Saeb (IRQ)

Women’s bantamweight
Cornelia Holm (SWE) v Corinne Laframboise (CAN)

Welterweight
Omar Hussein (JOR) v Vitalii Stoian (UKR)

Welterweight
Josh Togo (LEB) v Ali Dyusenov (UZB)

Flyweight
Isaac Pimentel (BRA) v Delfin Nawen (PHI)

Catchweight 80kg​​​​​​​
Seb Eubank (GBR) v Mohamed El Mokadem (EGY)

Lightweight
Mohammad Yahya (UAE) v Ramadan Noaman (EGY)

Lightweight
Alan Omer (GER) v Reydon Romero (PHI)

Welterweight
Ahmed Labban (LEB) v Juho Valamaa (FIN)

Featherweight
Elias Boudegzdame (ALG) v Austin Arnett (USA)

Super heavyweight
Roman Wehbe (LEB) v Maciej Sosnowski (POL)

Updated: July 01, 2024, 11:07 AM