The Grand Ethiopian Renaissance Dam in 2022. Construction began 14 years ago. AP
The Grand Ethiopian Renaissance Dam in 2022. Construction began 14 years ago. AP
The Grand Ethiopian Renaissance Dam in 2022. Construction began 14 years ago. AP
The Grand Ethiopian Renaissance Dam in 2022. Construction began 14 years ago. AP

Ethiopia says building of controversial Nile dam that began in 2011 now complete


Hamza Hendawi
  • English
  • Arabic

Construction of Ethiopia’s controversial Nile dam is complete and Egypt and Sudan, downstream nations that vigorously opposed it, are invited to its inauguration ceremony, Prime Minister Abiy Ahmed said on Thursday.

Egypt and Sudan have opposed the hydroelectric $4 billion Grand Ethiopian Renaissance Dam since construction began 14 years ago.

Egypt is concerned that the dam on the Blue Nile, the larger tributary, could reduce its share of the river's water which provides almost all of its freshwater needs. It has called the dam an existential threat, arguing that any drop in its water share will wipe out millions of farming jobs and ruin its delicate food balance.

Sudan is alarmed that any structural damage to the dam would leave large parts of the country underwater. It has also complained that Addis Ababa was not sharing data on the dam's operation.

The Nile running though Cairo. Hamza Hendawi / The National
The Nile running though Cairo. Hamza Hendawi / The National

The two countries, which have yet to comment on Mr Abiy's announcement, have engaged in years of fruitless negotiations with Ethiopia to reach a legally binding agreement on the filling and operation of the dam.

Their criticism of Addis Ababa over the dam has been toned down in the past two years. Sudan has been mired in a devastating civil war since April 2023, while Egypt has not felt any impact from the filling of the dam, thanks to plentiful rain on the Ethiopian highlands that have kept the Nile bountiful.

With the reservoir now filled to capacity, Egypt's main concern is how much water Addis Ababa will allow to flow downstream during severe drought.

"The Grand Ethiopian Renaissance Dam is now complete and we are preparing for its official inauguration," Mr Abiy wrote on X on Thursday.

"While there are those who believe it should be disrupted before that moment, we reaffirm our commitment: the dam will be inaugurated. To our neighbours downstream – Egypt and Sudan – our message is clear: the Renaissance Dam is not a threat but a shared opportunity."

Ethiopian Prime Minister Abiy Ahmed has said preparations were under way for the dam's official inauguration. EPA
Ethiopian Prime Minister Abiy Ahmed has said preparations were under way for the dam's official inauguration. EPA

Ethiopia has maintained that the dam does not pose a threat to anyone and is vital for its own development. It has said electricity generated by the dam would be available to neighbouring nations, including Sudan.

The dam, which stands near the Sudan border, began producing power in 2022 and is expected ultimately to create more than 6,000 megawatts of electricity – double Ethiopia’s current output and enough to make the East African nation of 120 million people a net energy exporter.

Mr Abiy said the dam was a symbol of regional co-operation and mutual benefit. "Ethiopia remains committed to ensuring that our growth does not come at the expense of our Egyptian and Sudanese brothers and sisters," he said.

"Ethiopia remains ready and willing to engage constructively with downstream countries. We extend an open invitation to the governments and peoples of Egypt, Sudan and all Nile Basin nations to join us in celebrating this historic milestone – Ethiopia’s Renaissance – in September."

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UAE currency: the story behind the money in your pockets

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.”

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Updated: July 04, 2025, 5:13 AM