NEW YORK // The Obama administration has muted its criticism of the Egyptian government in recent weeks as it seeks Cairo’s involvement in the coalition of Arab countries fighting ISIL extremists.
Egypt’s role in the latest war in Gaza, in which it tacitly aligned with Israel against Hamas, and an acceptance in Washington that Egypt’s president, Abdul Fattah El Sisi, has consolidated his rule at a time when Egyptians are desperate for a return to stability, have also helped to improve Cairo’s standing, analysts said.
In the year after Mr El Sisi overthrew his Islamist predecessor in a popular uprising, fears in the White House as well as Congress about Cairo’s policies resulted in a partial suspension of military aid and strained relations.
While significant questions remain about the countries’ ties, analysts said that cooperation against threats such as ISIL outweighed concerns about domestic Egyptian politics.
In September, US defence secretary Chuck Hagel said Washington would finally deliver 10 Apache attack helicopters that Egyptian officials say are crucial in their fight against Islamist extremists on the western border and in Sinai.
According to US and Egyptian officials, the Apaches – not F-16 jets and other hardware that Egypt had bought with previous years’ financing – will finally be delivered after military aid was blocked in June by senator Patrick Leahy, who said he was disturbed by Egypt’s imprisonment of journalists and mass death sentences for members of the Muslim Brotherhood.
The White House has the executive authority to deliver the helicopters regardless of Mr Leahy’s objections because they fall under counter-terrorism aid, and also because they were paid for with funds from 2009, experts said.
Barack Obama, the US president, met Mr El Sisi for the first time since his May election victory at last month’s UN General Assembly, and US secretary of state John Kerry attended a Gaza donor’s conference in Cairo last week, where his comments focused on the importance of economic reconstruction and Egypt’s role in combating extremism.
After the two presidents met, Mr Obama’s deputy national security adviser, Ben Rhodes, said that Mr Obama “underscored his commitment to the strategic partnership” and that they agreed to “expand cooperation on a range of issues, including our military intelligence and counterterrorism relationship”.
The UN meeting and plans to release the Apaches – although they have yet to be delivered – “signifies that the White House is looking to move beyond the disagreement about Egypt’s domestic politics and prioritise strategic cooperation”, said Eric Trager, an analyst at the Washington Institute for Near East Policy think tank.
Mr El Sisi and Egypt’s foreign minister have voiced support for the campaign against ISIL, but analysts doubt Egypt is willing or able to contribute militarily.
Cairo has security problems from extremists on its western border with Libya and in Sinai, and Egyptian officials frame this as part of the broader fight against Islamist extremists, including ISIL, Mr Trager said.
“Will Egypt actually be a participant in the fight against ISIL in Syria and Iraq? I strongly doubt it,” he said.
Egyptian officials are still waiting for the Apaches to be delivered, which they view as an important sign of commitment. Over the past year, Cairo has signalled that it would look elsewhere for military relationships, such as with Russia, from where it recently bought weapons and equipment worth US$3.5 billion (Dh12.85bn).
But most observers say that for Cairo, its military relationship with Washington is irreplaceable.
“Russia is not going to give them anything for free,” Mr Trager said. “And we do.”
The $1.3 billion in annual military aid the US has given Egypt since 1987, after its peace accord with Israel, has come under increasing scrutiny over the past year by legislators from both parties in Washington, as budgets tighten and as it became unclear how much influence on Egyptian domestic or security policy the money buys. There has been debate in Congress over whether to end the credit system, known as cash-flow financing, that allowed Egypt to place orders with US defence firms using money it expected to receive in the future.
More immediately, the current appropriations law requires the administration to certify that Egypt is fulfilling its obligations to the peace treaty with Israel, is cooperating on counter-terrorism and also that the government is taking steps to govern democratically and that presidential and parliamentary elections are held.
The first two conditions were certified by Mr Kerry in April, releasing $650 million in military and economic aid. But the democracy certification has yet to be made.
Observers in Washington said that they sensed a shift in the administration and Congress, where there have been strong dissenting voices to continuing the aid relationship in its current form.
“I don’t know to what extent the new regional situation will dampen a desire to make significant changes, [but] I doubt there is much wider inclination to rock the boat” in the current context, said Amy Hawthorne, a fellow at the Rafik Hariri Centre for the Middle East.
“The most important issue in the view of Washington, across the board, is Mr Sisi’s willingness to work closely with Israel in Sinai and on Gaza and his seemingly more positive stance towards Israel in general.”
The $1.3bn in military aid for Egypt will not officially run out until September 2015, though because only about half of the money has been released, at some point before then the money for pre-existing defence contracts will likely run out, placing added pressure on the State Department to make the democracy certification. “I would guess the logic of the relationship, especially in terms of keeping defence contracts going, is pulling toward making the certification at some point,” Ms Hawthorne said. But even if the parliamentary elections are held by the end of the year, there is enough remaining skepticism among some in the White House about the democratic transition and whether Mr El Sisi’s security policies are paving the way for long-term stability that the certification is not guaranteed. Elections “will be weighed against the broader environment of whether they truly bring legitimacy and the prospect of political and security stability”, said Brian Katulis, an expert on US policy in the region at the Center for American Progress, a think tank with close ties to the White House. “Regional dynamics might make some inside the administration lower the bar, but I don’t know if that’s a consensus position yet.” The recent moves signal an openness within the administration to figure out ways to reengage with the El Sisi government, Mr Katulis said, but “it’s not back to business as usual”.
tkhan@thenational.ae
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
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
Mohammed bin Zayed Majlis
Profile box
Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
A list of the animal rescue organisations in the UAE
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COMPANY PROFILE
Company name: Letstango.com
Started: June 2013
Founder: Alex Tchablakian
Based: Dubai
Industry: e-commerce
Initial investment: Dh10 million
Investors: Self-funded
Total customers: 300,000 unique customers every month
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
MO
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