Egypt and Somalia are to hold joint military exercises in the Horn of Africa nation, in what appears to be a show of force that could increase tension between the two Arab League members and Ethiopia, security officials told The National on Monday.
The war games, which are expected to be held this month, will involve ground, air, and naval forces, regional security sources close to Cairo said. They declined to disclose the start date, duration or the number of troops to be involved.
"The drills will send a clear and loud message about our firm commitment to co-operate and protect Somalia," one of the officials said. "They'll mean much more than just war drills."
News of the joint war games broke only a day after Egypt said it had written to the UN Security Council to protest against what it regarded as Ethiopia's unilateral policies over the Grand Ethiopian Renaissance Dam.
Cairo rejects Ethiopia's plan to move ahead with completing construction of the dam and filling its reservoir without consulting downstream nation Egypt, the letter written by Foreign Minister Badr Abdel Atty said. Those policies threaten regional stability, it added.
Egypt and Ethiopia have been at loggerheads for more than a decade over the construction of the massive Nile dam, which Cairo says will reduce its vital share of the river's waters.
“Egypt has negotiated in good faith [with Ethiopia] for 13 years. The negotiations have been halted after it became clear to everyone that Addis Ababa wanted them to continue indefinitely as a cover while it created a de facto situation on the ground,” the letter said.
It does not add anything new to the long-standing Egyptian position on Ethiopia's handling of the dispute over the dam. But it took on added significance because it came amid rising tension between the two nations.
News of the military drills came less than a week after Egypt began sending troops, arms and military hardware to Somalia under the provisions of a military co-operation agreement signed last month.
Ethiopia was deeply angered by the move that it said would destabilise the Horn of Africa region and take it into “uncharted waters”.
Egypt and Somalia have forged closer relations since landlocked Ethiopia signed a preliminary deal with the breakaway region of Somaliland this year to lease coastal land in exchange for possible recognition of its independence from Somalia.
Somalia called the Ethiopia-Somaliland deal an assault on its sovereignty and said it would block it by all means necessary. It has also threatened to send home an estimated 10,000 Ethiopian troops who are in Somalia as part of a peacekeeping mission to fight Al Shabab militants, if the deal is not cancelled.
Egypt said it plannedto apply to the African Union to be part of a new peacekeeping force in Somalia. However, it is not clear whether the Egyptian troops already on the ground in Somalia will serve as the nucleus of its peacekeeping contingent. Media reports in Egypt have spoken of plans to deploy as many as 10,000 troops in Somalia.
There has been no official announcement in Cairo on the deployment and the sending of arms to Somalia. But the security officials explained that besides bolstering Somali defences, the troops would train Somali forces and help protect state installations and key political figures.
The deployment of Egyptian troops in Somalia would place them near Ethiopia's peacekeepers in the country and across the border in Ethiopia itself, raising the spectre of clashes between the two.
Egyptian President Abdel Fattah El Sisi has repeatedly said the impact of the dam on his country amounts to an existential threat that cannot be ignored. Talks between the two countries have failed to reach a diplomatic solution.
A possible outbreak of hostilities between Egypt and Ethiopia would further destabilise the Horn of Africa, as well as the larger East Africa region, already shaken by a 16-month civil war in Sudan that has created a severed displacement crisis, with two million of the 10 million displaced having fled to neighbouring nations.
Attacks on Red Sea shipping by the Iran-backed Houthi rebels in Yemen, in solidarity with Palestinians in Gaza, have contributed to the instability in the region, with world powers vying for a foothold in the strategic stretch of water.
The attacks on shipping have also significantly reduced Egypt's foreign currency revenue from the Suez Canal, which links the Red Sea to the Mediterranean and earns Egypt billions of dollars a year in transit fees.
Egypt, a mainly desert country with a population of 106 million, depends on the Nile for almost all of its freshwater needs. Considered one of the world's driest nations, it claims any reduction in its share of the Nile waters would upset its delicate food balance and wipe out hundreds of thousands of agricultural jobs.
Ethiopia says the dam is essential to the country's development and has repeatedly assured downstream Egypt and Sudan that no harm would come to them from the Ethiopian dam, which is being built on the Blue Nile.
The majority of the river's waters that reach Egypt come from the Blue Nile, which joins the White Nile in Khartoum, the Sudanese capital, before flowing north into the deserts of Sudan and Egypt.
“The government of Egypt … stands ready to exercise its right to defend and protect the rights and interests of the Egyptian people, in accordance with the UN Charter,” Egypt told the Security Council in Sunday's letter.
UAE currency: the story behind the money in your pockets
The years Ramadan fell in May
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
Results
4pm: Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m; Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
4.35pm: Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m; Winner: Walton Street, William Buick, Charlie Appleby
5.10pm: Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m; Winner: Canvassed, Pat Dobbs, Doug Watson
5.45pm: Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m; Winner: Midnight Sands, Pat Dobbs, Doug Watson
6.20pm: Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m; Winner: Lord Glitters, Daniel Tudhope, David O’Meara
6.55pm: Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass
7.30pm: Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m; Winner: Final Song, Frankie Dettori, Saeed bin Suroor
Results
1. Lewis Hamilton (Mercedes) 1hr 32mins 03.897sec
2. Max Verstappen (Red Bull-Honda) at 0.745s
3. Valtteri Bottas (Mercedes) 37.383s
4. Lando Norris (McLaren) 46.466s
5.Sergio Perez (Red Bull-Honda) 52.047s
6. Charles Leclerc (Ferrari) 59.090s
7. Daniel Ricciardo (McLaren) 1:06.004
8. Carlos Sainz Jr (Ferrari) 1:07.100
9. Yuki Tsunoda (AlphaTauri-Honda) 1:25.692
10. Lance Stroll (Aston Martin-Mercedes) 1:26.713,
Favourite book: ‘The Art of Learning’ by Josh Waitzkin
Favourite film: Marvel movies
Favourite parkour spot in Dubai: Residence towers in Jumeirah Beach Residence
Tips for SMEs to cope
- Adapt your business model. Make changes that are future-proof to the new normal
- Make sure you have an online presence
- Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
- Open communication with customers to see how they are coping and be flexible about extending terms, etc
Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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