The Grand Ethiopian Renaissance Dam is at the heart of schisms between Egypt and Ethiopia. EPA
The Grand Ethiopian Renaissance Dam is at the heart of schisms between Egypt and Ethiopia. EPA
The Grand Ethiopian Renaissance Dam is at the heart of schisms between Egypt and Ethiopia. EPA
The Grand Ethiopian Renaissance Dam is at the heart of schisms between Egypt and Ethiopia. EPA

Egypt's involvement in Somalia signals new and precarious chapter in dispute with Ethiopia


Hamza Hendawi
  • English
  • Arabic

When Somalia's President Hassan Sheikh Mohamud visited Egypt last month, he handed his hosts a large file that laid out in detail the threat posed by Ethiopia and Al Shabab militants to his Horn of Africa nation.

Also in the file, The National has learnt, was a list of what his security forces needed to become a more agile counter-terrorism force. Ethiopian troops in Somalia, as part of an African Union peacekeeping force to fight Al Shabab, were doing little on the ground, complained the Somali leader. Somalia, he said, needed Egypt's help.

Frustrated by years of quarrelling with Ethiopia over his country's life-and-death share of the Nile waters, Egyptian President Abdel Fattah El Sisi could not pass up on the opportunity to make Ethiopia sweat.

The two Arab League members signed a military co-operation agreement on August 14 and, less than two weeks later, Egyptian C-130 transport palnes flew arms, hardware and elite troops to Mogadishu.

The presence of Egyptian troops in Somalia, contend analysts, could persuade Ethiopia to show some flexibility and enter a legally-binding deal on the filling and operation of a giant Nile dam being built by Addis Ababa that Cairo sees as an existential threat to its share of the river's waters.

“It would not have been possible for a nation [Egypt] with so much history and rights to Nile waters to remain silent when faced with the absurdity that Ethiopia has shown us in recent years,” said Mustafa Al Fiqy, a retired career Egyptian diplomat and a prominent analyst.

“You have to show the other side that you have tools that exist although you may not necessarily use. Don't let them feel comfortable,” he counselled. “Our strategic patience when it comes to Ethiopia has run out.”

Egyptian President Abdel Fattah Al Sisi (left) and Prime Minister of Ethiopia Abiy Ahmed talk during the 32nd African Union Summit in Addis Ababa, Ethiopia, in 2019.
Egyptian President Abdel Fattah Al Sisi (left) and Prime Minister of Ethiopia Abiy Ahmed talk during the 32nd African Union Summit in Addis Ababa, Ethiopia, in 2019.

As well as its belief that the Ethiopian contingent on its territory has not been effective, Somalia is quarrelling with Ethiopia over a preliminary deal its landlocked neighbour signed this year with Somaliland 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 the estimated 10,000 Ethiopian troops in Somalia if the deal is not cancelled.

For its part, Egypt said it planned to apply to the African Union to be part of a new peacekeeping force in Somalia which, as the host nation, would approve. But it is not clear whether the Egyptian troops already on the ground in Somalia will serve as the nucleus of Cairo's peacekeeping contingent.

What is clear though is that Egyptian troops are now posted in proximity to Ethiopian forces in Somalia and across the border in Ethiopia itself.

There has been no official Egyptian announcement on the sending of arms and troops in Somalia although images of the Egyptian C-130 transport planes sitting on the tarmac at Mogadishu airport have been widely shared online together with those of the commandos.

The Aswan High Dam whose reservoir has since its completion spared Egypt water shortages during years of drought. Hamza Hendawi / The National
The Aswan High Dam whose reservoir has since its completion spared Egypt water shortages during years of drought. Hamza Hendawi / The National

Analysts whose views reflect those of the government have been trying to play down the significance of the Egyptian move or dismiss the potential of armed clashes with Ethiopian troops.

“Our objective is to raise the efficiency of the Somali armed forces. We are not there to fight a war,” said Samir Farrag, a retired army general who is now a prominent military analyst known to be close to the government.

“We are there to help the Somali army stand on its two feet, safeguard the nation's national security and control every inch of Somali territory.”

The move, however, angered Ethiopia, which warned that the volatile Horn of Africa was entering uncharted waters and, without mentioning Egypt by name, said the intervention of outside forces there would destabilise the region.

Egypt countered by complaining in a letter to the UN Security Council about what it called Ethiopia's unilateral policies over the Gerd.

“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.

Egyptian farmers plant rice in Egypt's fertile Delta in Tanta 100km northwest of Cairo, Egypt. EPA
Egyptian farmers plant rice in Egypt's fertile Delta in Tanta 100km northwest of Cairo, Egypt. EPA

Heightened tension 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 severe 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 and Egypt struggling to cope with a sharp reduction in its revenue from the Suez Canal, a man-made waterway linking the Mediterranean to the Red Sea, as a result of the attacks.

“I don't think that the Egyptian move will necessarily set off a war in the Horn of Africa, but it's indicative of persistent tension there,” said Michael Hanna, a New York-based Middle East expert with the International Crisis Group think tank.

As a means to pressure Ethiopia into a more flexible approach towards the dam dispute, Egypt has over the past decade sought to forge closer relations with some of Ethiopia's neighbours as well as fellow Nile basin nations, lending them its expertise in a variety of fields and occasionally sending aid. Mr El Sisi has also travelled in sub-Saharan Africa more than any of his predecessors.

That strategy was also meant to counter the narrative Ethiopia has been spreading of Egypt selfishly taking the lion's share of the Nile waters without paying heed to the needs of less developed Nile basin nations.

Ethiopia views the dam as crucial to the impoverished nation’s development and has repeatedly sought to assure downstream Egypt and Sudan that they would not be impacted by it.

Egypt said it had not been effected by five annual fillings of the water reservoir behind the Gerd, but maintains that’s the case only because the rain over the Ethiopian highlands has been plentiful.

Egyptian President Abdel Fattah El Sisi during the 32nd African Union (AU) summit in Addis Ababa in 2019. AFP
Egyptian President Abdel Fattah El Sisi during the 32nd African Union (AU) summit in Addis Ababa in 2019. AFP

Egypt has, on the other hand, secured a military centre in Djibouti, a neighbour of Ethiopia that overlooks the southern entrance of the Red Sea. It has also struck an alliance with Eritrea, a traditional foe of Ethiopia whose secession from its larger neighbour in 1991 left the latter a landlocked nation.

Egypt also saw an opportunity to put pressure on Ethiopia just before the Tigray war erupted when a dormant Ethiopian-Sudanese border dispute turned violent, with scores killed from both sides in a series of clashes.

Egypt and Sudan rushed to sign a military co-operation agreement as Cairo pledged to come to the defence of its southern neighbour against any attack. Sudan and Ethiopia later agreed to settle their dispute through negotiations and Prime Minister Abiy Ahmed visited Khartoum, where he received a warm welcome from Sudanese military leader Gen Abdel Fattah Al Burhan.

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APPLE IPAD MINI (A17 PRO)

Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits

Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine

Storage: 128/256/512GB

Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

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Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Naga
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The specs: Volvo XC40

Price: base / as tested: Dh185,000

Engine: 2.0-litre, turbocharged in-line four-cylinder

Gearbox: Eight-speed automatic

Power: 250hp @ 5,500rpm

Torque: 350Nm @ 1,500rpm

Fuel economy, combined: 10.4L / 100km

Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A
Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

At a glance

- 20,000 new jobs for Emiratis over three years

- Dh300 million set aside to train 18,000 jobseekers in new skills

- Managerial jobs in government restricted to Emiratis

- Emiratis to get priority for 160 types of job in private sector

- Portion of VAT revenues will fund more graduate programmes

- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government

MATCH INFO

Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')

Celta Vigo 1 (Olaza 42')

As it stands in Pool A

1. Japan - Played 3, Won 3, Points 14

2. Ireland - Played 3, Won 2, Lost 1, Points 11

3. Scotland - Played 2, Won 1, Lost 1, Points 5

Remaining fixtures

Scotland v Russia – Wednesday, 11.15am

Ireland v Samoa – Saturday, 2.45pm

Japan v Scotland – Sunday, 2.45pm

The specs: 2017 Dodge Ram 1500 Laramie Longhorn

Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km

Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

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.”

MATCH INFO

Real Madrid 2

Vinicius Junior (71') Mariano (90 2')

Barcelona 0

Profile box

Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

UAE currency: the story behind the money in your pockets
What is Bitcoin?

Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.

The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers. 

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Gulf Under 19s final

Dubai College A 50-12 Dubai College B

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)
If you go

The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.

The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.

GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

Updated: September 05, 2024, 3:12 PM