Egyptian Foreign Minister Badr Abdelatty greets Saudi Foreign Minister Prince Faisal bin Farhan during a visit to Riyadh on Monday. Photo: Egyptian Ministry of Foreign Affairs
Egyptian Foreign Minister Badr Abdelatty greets Saudi Foreign Minister Prince Faisal bin Farhan during a visit to Riyadh on Monday. Photo: Egyptian Ministry of Foreign Affairs
Egyptian Foreign Minister Badr Abdelatty greets Saudi Foreign Minister Prince Faisal bin Farhan during a visit to Riyadh on Monday. Photo: Egyptian Ministry of Foreign Affairs
Egyptian Foreign Minister Badr Abdelatty greets Saudi Foreign Minister Prince Faisal bin Farhan during a visit to Riyadh on Monday. Photo: Egyptian Ministry of Foreign Affairs

Egypt and Saudi foreign ministers discuss strengthening ties


Kamal Tabikha
  • English
  • Arabic

Egypt’s Foreign Minister Badr Abdelatty visited Riyadh on Monday for talks with his Saudi counterpart, Prince Faisal bin Farhan, on strengthening bilateral ties and co-ordinating on critical regional issues, including the war in Gaza.

Mr Abdelatty and Prince Faisal later chaired the annual meeting of the Egypt-Saudi Political Consultation and Follow-Up Committee.

Both sides highlighted the growing ties between the two countries and their commitment to advancing economic, political and cultural co-operation in line with the directives of Egypt's President Abdel Fattah El Sisi, and Saudi Arabia's King Salman and Crown Prince Mohammed bin Salman, said an Egyptian Foreign Ministry statement.

The discussions centred on increasing economic and investment ties. Mr Abdelatty stressed the importance of maximising institutional frameworks and facilitating high-level exchanges between officials and business leaders from both countries. He referenced the visit of the Saudi-Egyptian Business Council and the Federation of Saudi Chambers to Cairo this month to explore investment opportunities in Egypt.

Both sides announced plans to launch an Egyptian-Saudi Investment Forum and activate the "High Co-ordination Council" for bilateral co-operation, the statement said.

Mr Abdelatty also outlined Egypt’s efforts to attract Saudi investment, citing financial and tax reforms as well as incentives for foreign investors, and stressed the importance of economic integration, particularly in industrial development. He proposed aligning Egypt's Vision 2030 with Saudi Arabia’s Vision 2030 to enhance their collaboration.

On regional issues, the ministers discussed the war in Gaza and underscored the urgent need for a ceasefire and to address the deteriorating humanitarian conditions.

They rejected the forced displacement of Palestinians and reviewed plans for reconstruction efforts in Gaza, including an international conference to be co-hosted by Egypt, the Palestinian government and the United Nations.

The talks also covered developments in Sudan, Syria, Lebanon, Yemen and the Horn of Africa, with both sides reaffirming their shared commitment to regional security and stability.

The Egyptian Foreign Ministry said maritime security in the Red Sea − where commercial vessels face the threat of attacks by Yemen's Houthi rebels − was also addressed as part of broader discussions on ensuring safe navigation in the region.

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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

Updated: April 22, 2025, 3:18 AM