Egypt's border with Gaza. Cairo has been sharply critical of Israel's war on the enclave. EPA
Egypt's border with Gaza. Cairo has been sharply critical of Israel's war on the enclave. EPA
Egypt's border with Gaza. Cairo has been sharply critical of Israel's war on the enclave. EPA
Egypt's border with Gaza. Cairo has been sharply critical of Israel's war on the enclave. EPA

Egypt faces prospect of Iran defeat further empowering Israel in region


Hamza Hendawi
  • English
  • Arabic

Egypt has been sharply critical of Israel over its war on Iran, a stand rooted in part in Cairo’s concern that a defeated, or significantly weakened, Tehran would allow its one-time foe to project its power more emphatically across the Middle East.

Now that the US has joined Israel in the war, calls for Egypt – once the region's political and cultural engine – to prepare for the prospect of a dominant Israel have taken on added significance.

The challenge has already stirred a national conversation on what needs to be done.

“It’s not just Iran. The fate of the entire region is now on the line," political analyst and author Abdalla Senawy warned.

"We are at a historic juncture. If Iran is defeated … Egypt’s turn will eventually follow. This is the time of reckoning for Egypt before anyone else. Either it rises and makes its own fate or enters and stays in darkness for many decades to come."

Egypt's position on Iran has mostly been shaped by Cairo's opposition to Israel's war in Gaza, as well as US President Donald Trump’s support for Israel. Cairo has also rejected Washington's proposal to resettle Gazans in Egypt.

In contrast, Egypt's ties with Iran have been improving rapidly, with the two nation forging closer relations, including on energy and military co-operation.

Egyptian President Abdel Fattah El Sisi has not spoken publicly about the Iran-Israel conflict since it began on June 13. But he has strongly condemned Israel for initiating the conflict in calls and meetings with world leaders and foreign diplomats, according to official statements.

The latest of those talks took place on Saturday night, when Mr El Sisi spoke by phone with Iranian President Masoud Pezeshkian, just hours before the US struck three key nuclear sites in Iran. Mr El Sisi condemned Israel’s escalation with Iran and warned that the war posed a threat to regional security and stability.

Egyptian President Abdel Fattah El Sisi has condemned Israel's actions. EPA
Egyptian President Abdel Fattah El Sisi has condemned Israel's actions. EPA

Deeper concerns

On Sunday, Egypt said it was “deeply worried about the latest developments” in Iran, without mentioning the US or its attacks. But concerns in Egypt about the consequences of the war are much greater than public statements suggest.

Cairo fears the US and Israel will next turn their attention to carrying out Mr Trump’s proposal to force Palestinians to leave Gaza and resettle elsewhere, including in Egypt's Sinai Peninsula.

Egypt has repeatedly warned that this would undermine its national security, damage the Palestinian cause and weaken the argument for two-state solution.

Pro-government media figures, including popular talk show hosts, have criticised Israel and assured Egyptians that Mr El Sisi and the country's military are there to stymie Israel's efforts to change the region's political landscape.

Separately, the Grand Imam of Cairo's Al Azhar Mosque, Dr Ahmed Al Tayeb, has supported Iran against Israel, condemning Israel's attacks in a Farsi-language Facebook post. As the head of the world’s foremost seat of Sunni Islam learning, his words carry significant weight given that Iran is predominantly Shiite.

Egypt and Israel signed a US-sponsored peace treaty in 1979 that is widely viewed as a cornerstone of regional stability. But Egypt’s military doctrine continues to present Israel as the nation’s chief adversary.

Egyptian military drills are largely focused on the Sinai Peninsula being the most probable theatre of future hostilities, just as the mainly desert territory was in the wars with Israel in 1948, 1956, 1967 and 1973.

Egypt currently faces chronic economic woes, while losing much of its allure as a regional cultural and arts centre. Paradoxically, Egypt has the region's largest army, equipped with cutting-edge weapons procured from the US, Russia, western Europe and China.

“Egypt needs smart partnerships with rational regional powers … that will create a ‘crescent of stability’ based on interests not ideology,” US-based political scientist and commentator Mamoun Fandy wrote in an open letter to Mr El Sisi.

“We don’t need a military confrontation to prove our presence but rather economic and political engineering that convinces the region and the world that Egypt remains the ultimate cornerstone of the Middle East. Mr President, history is not written through neutrality but is made with courageous and conscious positions.”

Amr Hashem Radia, another Egyptian commentator, has made similar points about Egypt’s foreign policy. He urged authorities to “open up the public space" and enable more freedom of expression. That will help the government should it need to make “unilateral decisions” to deal with the effects of the Israel-Iran conflict, he said.

UAE currency: the story behind the money in your pockets
Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
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Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

The specs

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Torque: 405Nm at 1,750-3,500rpm

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Fuel consumption: 6.9L/100km

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Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

War and the virus
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While you're here
THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Tamkeen's offering
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Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).

Updated: June 23, 2025, 1:43 PM