Egypt and Eritrea are exploring a possible military co-operation deal and intelligence sharing as they seek to cement already close ties, according to sources.
The sources told The National that such an accord would also include outlining bilateral steps to protect Red Sea shipping, which has been severely disrupted by attacks from Iran-backed rebels in Yemen carried out in solidarity with the Palestinians during Israel's 11-month war in Gaza.
Egypt is also discussing with Eritrea possible mediation by Cairo to end decades-old animosity between Asmara and the ethnic rebels of Tigray in neighbouring Ethiopia, where the Tigray People's Liberation Front poses the most potent threat to the rule of Prime Minister Abiy Ahmed.
Mr Abiy has been an anathema in Egypt because of what Cairo views as his intransigence in more than a decade of fruitless negotiations to resolve the two nations' dispute over a giant Nile dam that Ethiopia is building, which is seen by Cairo as an existential threat to its life-and-death share of the river's water. Addis Ababa has in turn accused Egypt of supporting anti-government groups to destabilise Ethiopia.
The discussions between Egypt and Eritrea come amid a surprise visit to Asmara last weekend by Egyptian intelligence chief Gen Kamal Abbas, a confidant of President Abdel Fattah El Sisi, and Foreign Minister Badr Abdelatty. The pair met Eritrea's longtime leader Isaias Afwerki.
The Foreign Ministry on Saturday said the pair handed the Eritrean leader a message from Mr El Sisi on “bolstering and developing bilateral relations in all fields”.
“They also listened to President Afwerki's views on developments in the Red Sea regarding the importance of finding the right circumstances to restore normal maritime shipping and international trade through the Bab Al Mandeb,” it said, referring to the narrow strait that links the Red and Arabian seas.
The Egyptians also heard the Eritrean leader's views on developments in the Horn of Africa, the challenges faced in that region and methods for reinforcing security and stability there, it said.
Egypt and Eritrea together account for thousands of kilometres of Red Sea coastline, including the Egyptian shores of the gulfs of Suez and Aqaba, as well as 355 islands under Eritrean sovereignty. While Egypt controls the northern reaches of the Red Sea, including the Suez Canal that links to the Mediterranean, Eritrea is located close to the strategic Bab Al Mandeb strait.
The two have forged close ties in the 10 years since Mr El Sisi rose to power in the most populous Arab nation, with Mr Afwerki meeting the Egyptian President several times in recent years. They last met in Cairo in February, only three months after their previous meeting in Riyadh, Saudi Arabia.
“The primary aim of Egypt in the region is to curb Ethiopian influence in the Horn of Africa and put pressure on Abiy Ahmed’s government,” said one of the sources. “To boost co-operation with Eritrea is a huge step in that direction.”
A military co-operation agreement with Eritrea would be the latest deal of its kind to be struck between Cairo and countries in the Horn of Africa, East Africa or the Nile basin. These include Djibouti, Kenya, Uganda, Sudan and Somalia.
Analysts have long suspected those deals are primarily designed to put pressure on Addis Ababa to show flexibility in its dispute with Egypt over the Grand Ethiopian Renaissance Dam.
The latest military co-operation agreement between Egypt and its southern neighbours was signed last month with Somalia, which has traditionally been at odds with Ethiopia. Under the provisions of that deal, Egypt late last month airlifted arms, military hardware and troops to Somalia, deeply angering Ethiopia, which has warned that the move would undermine stability in the Horn of Africa and vowed not to stand idly by.
Eritrea, on the other hand, gained its independence from Ethiopia in 1993 after a decades-long civil war. The pair fought a ruinous war over a border dispute between 1998 and 2000; and although they have since made peace and fought together against Ethiopia's Tigrayan rebels in 2020-2022, they remain rivals.
Somalia's quarrel with Addis Ababa now is over a preliminary deal its landlocked neighbour signed this year with the breakaway territory of Somaliland to lease coastal land in exchange for possible recognition of its independence from Somalia.
Somalia called the deal an assault on its sovereignty and said it would block it by all means necessary.
“Somalia and Ethiopia share a long-enduring animosity,” Somalia's Minister of State for Foreign Affairs Ali Mohammed Omar told Qatar's Al Jazeera TV network in an interview aired last week.
Asked how Somalia would respond if Ethiopia and Somaliland went ahead and implemented their agreement, he said: “That will be a declaration of war.”
Somalia has already threatened to send home an estimated 10,000 Ethiopian troops in Somalia as part of an African Union-mandated peacekeeping force if the deal is not cancelled.
For its part, Egypt said it planned to apply to the AU to be part of a new peacekeeping force in Somalia which, as the host nation, Somalia must approve.
If this comes to fruition, it could increase tensions. Already, the 17-month-old war in Sudan has driven more than two million people over the borders of that vast Afro-Arab nation. And in Ethiopia, ethnic divides appear to be ominously worsening and Somalia is faced with a constant threat from militant group Al Shabab.
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
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 National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
COMPANY%20PROFILE
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
COMPANY%20PROFILE
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
The specs
Engine: 3.8-litre V6
Power: 295hp at 6,000rpm
Torque: 355Nm at 5,200rpm
Transmission: 8-speed auto
Fuel consumption: 10.7L/100km
Price: Dh179,999-plus
On sale: now
The biog:
Favourite book: The Leader Who Had No Title by Robin Sharma
Pet Peeve: Racism
Proudest moment: Graduating from Sorbonne
What puts her off: Dishonesty in all its forms
Happiest period in her life: The beginning of her 30s
Favourite movie: "I have two. The Pursuit of Happiness and Homeless to Harvard"
Role model: Everyone. A child can be my role model
Slogan: The queen of peace, love and positive energy
UAE currency: the story behind the money in your pockets
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Joy%20Ride%20
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Diriyah%20project%20at%20a%20glance
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The%20specs
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All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
More from Rashmee Roshan Lall
RACECARD
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The biog
Age: 30
Position: Senior lab superintendent at Emirates Global Aluminium
Education: Bachelor of science in chemical engineering, post graduate degree in light metal reduction technology
Favourite part of job: The challenge, because it is challenging
Favourite quote: “Be the change you wish to see in the world,” Gandi