The tight household economics of the Abdel Hameids leave a glaring weakness: how to deal with illness or a health care emergency.
The tight household economics of the Abdel Hameids leave a glaring weakness: how to deal with illness or a health care emergency.
The tight household economics of the Abdel Hameids leave a glaring weakness: how to deal with illness or a health care emergency.
The tight household economics of the Abdel Hameids leave a glaring weakness: how to deal with illness or a health care emergency.

Giza offers a picture of Morsi's challenge


  • English
  • Arabic

GIZA, EGYPT // The true picture of President Mohammed Morsi's inheritance 50 days into his term can be found in Giza's dilapidated apartments where tap water has been shut down for a week and every month is a struggle to make ends meet.

"Here we are not seen," said Maha, 29, a housewife, sitting in the lime-green living room of a neighbour's flat. "The politicians come with promises, but after elections are over they are nowhere near us."

The largest decoration on the wall is a framed page of the Quran and an old clock stopped at 2.37 for lack of batteries - a potent metaphor of the feeling among Egypt's impoverished that there has been no real progression over the past several decades.

Mr Morsi's government is coming against the challenge of reforming the rundown bureaucracy left after the collapse of the regime of Hosni Mubarak. Over nearly three decades, Mubarak's lack of imagination and commitment to reform allowed Egypt to become a moribund state, rife with corruption and inequality.

The economic situation has worsened during the chaotic transition to Mr Morsi's presidency. Official joblessness rose to 12.6 per cent this month from 11.8 per cent during the same period last year.

With his political power consolidated after a shake-up of the military on Auguest 12, the real test for Mr Morsi will be whether he can fix the broken system.

The Muslim Brotherhood, from whose ranks Mr Morsi emerged, has proposed a "Renaissance Project" for Egypt. The platform proposes to transform Egypt into a more prosperous country through encouraging the private sector and reforms that will lead to more equal income distribution and higher wages.

There is little doubt, according to economic studies and economists, that one of the most destructive forces in Egypt's economy is its huge expenditure on subsidies for energy and bread. About 20 per cent of the budget is spent on subsidies for energy, which is higher than the combined budget allocations for education and health care, which are 11 per cent and 5 per cent respectively.

In neighbourhoods such as Saft El Laban, which means milk container, policy platforms ring hollow as residents register the stark contrast of their lives to those of the more well-off just down the motorway.

A huge motorway flyover crosses through the neighbourhood, allowing quick passage for residents of the high-end villas in walled compounds on the outskirts to Cairo's city centre. Just below, the main street of Saft El Laban is a pandemonium of rickshaw drivers, storefronts, horse-drawn carts and bright lights. Men roll metal gas containers down the street and as of late haul jerry cans of water because of the shortage.

A walk down any side street, sometimes pitch black, leads to dense, informal housing that has been built without permits or approvals from the government, This is where most Egyptians live, including Said Abdel Hameid, his wife, Maha, and their three children.

Mr Abdel Hameid is relatively well off by Egyptian standards. He earns about 1,500 Egyptian pounds (Dh900) a month working eight hours a day as a stockman for Cairo University before seven hours as an office manager for a TV production studio six days a week. At about $2,960 (Dh10,900) per year, he is just above the average gross domestic product per capita in Egypt, which is $2,781, according to the United Nations.

But as soon as his monthly wage is handed to him in a stack of rumpled bills, it quickly begins to disappear.

"By God, sometimes I don't know how we can survive," he said, sitting with his wife and neighbours, while the children played in the communal stairwell.

About 500 pounds a month goes paying of his debt for household goods: two fans, an old television and a battered tabletop. Another 25 pounds is paid for a natural gas connection - a rarity for many - that will be amortised over seven years. That does not include the cost of gas used, which averages another 10 pounds a month.

Then comes education costs. The public school system is so dysfunctional that nearly every family in Egypt, poor and rich, pays for private lessons in a bid to improve their children's' chances at getting a job. The school of Mr Abdel Hameid's daughter, Sama, 7, requires 100 pounds a month for after-school lessons. Another 150 pounds is paid for other private lessons from teachers.

Rent for their flat, which consists of two small bedrooms and a living room, is 250 pounds.

That leaves the Abdel Hameid family with about 465 pounds to get through the month. It is barely enough to put basic food on the table. At 5 pounds a kilo, tomatoes are a luxury. To keep up with hungry mouths, the only option is to buy macaroni and rice in bulk. Foul, a boiled bean dish, is a mainstay of their cuisine.

The tight household economics of the Abdel Hameids leave a glaring weakness: how to deal with illness or a health care emergency. Mr Abdel Hameid recently had an ear infection, something easily treated, but he had to wait in agony for several days while family members and neighbours pitched in a few pounds to buy the antibiotics. They cost 95 pounds, almost a quarter of the money left over for monthly expenditures.

"When someone is sick, everyone has to help," said Maha, his wife. "You'd be crazy to go to a public hospital for a big illness. They treat you like you are nothing, leave you waiting."

Alaa Ghanem, a physician who has studied Egypt's health care services for the Egyptian Centre for Individual Rights, said that the system in Egypt "doesn't provide a chance or stability for poor people".

More than 70 per cent of health care expenditures were out-of-pocket, meaning they were unable to get or afford coverage from insurance providers. What's more, public hospitals are so low on supplies that many people are forced to buy their own syringes, bedpans, gauze, medicine and other supplies.

"We have a deteriorating health care system," he said. "It's not just bad, but it's getting worse. We have high out-of-pocket spending and low government spending."

For many Egyptians, though, the refrain is not for handouts, but for steady work.

The Abdel Hameids' neighbour, Rania Roushdy, was divorced last year and lives on the 20 pounds she receives when a hospital calls her for cleaning work. Some weeks they don't call and she has to turn to her sister for help in providing for her two daughters, 17 and 9.

"I don't want to ask for help," she said. "All I want is a job that I can rely on. I don't care what it is. No one likes to get money from others without working. A job with dignity, steady pay. That's what we want."

bhope@thenational.ae

Western Clubs Champions League:

  • Friday, Sep 8 - Abu Dhabi Harlequins v Bahrain
  • Friday, Sep 15 – Kandy v Abu Dhabi Harlequins
  • Friday, Sep 22 – Kandy v Bahrain

Company Profile

Company name: NutriCal

Started: 2019

Founder: Soniya Ashar

Based: Dubai

Industry: Food Technology

Initial investment: Self-funded undisclosed amount

Future plan: Looking to raise fresh capital and expand in Saudi Arabia

Total Clients: Over 50

Meydan race card

6.30pm: Maiden Dh 165,000 1,600m
7.05pm: Handicap Dh 185,000 2,000m
7.40pm: Maiden Dh 165,000 1,600m
8.15pm: Handicap Dh 190,000 1,400m
8.50pm: Handicap Dh 175,000 1,600m
9.25pm: Handicap Dh 175,000 1,200m
10pm: Handicap Dh 165,000 1,600m

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Dunki
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The specs
Engine: 2.5-litre, turbocharged 5-cylinder

Transmission: seven-speed auto

Power: 400hp

Torque: 500Nm

Price: Dh300,000 (estimate)

On sale: 2022 

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

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

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Specs

Engine: 3.0L twin-turbo V6
Gearbox: 10-speed automatic
Power: 405hp at 5,500rpm
Torque: 562Nm at 3,000rpm
Fuel economy, combined: 11.2L/100km
Price: From Dh292,845 (Reserve); from Dh320,145 (Presidential)
On sale: Now

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

About Okadoc

Date started: Okadoc, 2018

Founder/CEO: Fodhil Benturquia

Based: Dubai, UAE

Sector: Healthcare

Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth

Funding stage: Series B fundraising round to conclude in February

Investors: Undisclosed

Company%20profile
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Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

Results

2pm: Handicap Dh 90,000 1,800m; Winner: Majestic Thunder, Tadhg O’Shea (jockey), Satish Seemar (trainer).

2.30pm: Handicap Dh120,000 1,950m; Winner: Just A Penny, Sam Hitchcott, Doug Watson.

3pm: Handicap Dh105,000 1,600m; Winner: Native Appeal, Pat Dobbs, Doug Watson.

3.30pm: Jebel Ali Classic Conditions Dh300,000 1,400m; Winner: Thegreatcollection, Adrie de Vries, Doug Watson.

4pm: Maiden Dh75,000 1,600m; Winner: Oktalgano, Xavier Ziani, Salem bin Ghadayer.

4.30pm: Conditions Dh250,000 1,400m; Winner: Madame Ellingtina, Richard Mullen, Satish Seemar.

5pm: Maiden Dh75,000 1,600m; Winner: Mystery Land, Fabrice Veron, Helal Al Alawi.

5.30pm: Handicap Dh85,000 1,000m; Winner: Shanaghai City, Jesus Rosales, Rashed Bouresly.

Ain Issa camp:
  • Established in 2016
  • Houses 13,309 people, 2,092 families, 62 per cent children
  • Of the adult population, 49 per cent men, 51 per cent women (not including foreigners annexe)
  • Most from Deir Ezzor and Raqqa
  • 950 foreigners linked to ISIS and their families
  • NGO Blumont runs camp management for the UN
  • One of the nine official (UN recognised) camps in the region
You may remember …

Robbie Keane (Atletico de Kolkata) The Irish striker is, along with his former Spurs teammate Dimitar Berbatov, the headline figure in this season’s ISL, having joined defending champions ATK. His grand entrance after arrival from Major League Soccer in the US will be delayed by three games, though, due to a knee injury.

Dimitar Berbatov (Kerala Blasters) Word has it that Rene Meulensteen, the Kerala manager, plans to deploy his Bulgarian star in central midfield. The idea of Berbatov as an all-action, box-to-box midfielder, might jar with Spurs and Manchester United supporters, who more likely recall an always-languid, often-lazy striker.

Wes Brown (Kerala Blasters) Revived his playing career last season to help out at Blackburn Rovers, where he was also a coach. Since then, the 23-cap England centre back, who is now 38, has been reunited with the former Manchester United assistant coach Meulensteen, after signing for Kerala.

Andre Bikey (Jamshedpur) The Cameroonian defender is onto the 17th club of a career has taken him to Spain, Portugal, Russia, the UK, Greece, and now India. He is still only 32, so there is plenty of time to add to that tally, too. Scored goals against Liverpool and Chelsea during his time with Reading in England.

Emiliano Alfaro (Pune City) The Uruguayan striker has played for Liverpool – the Montevideo one, rather than the better-known side in England – and Lazio in Italy. He was prolific for a season at Al Wasl in the Arabian Gulf League in 2012/13. He returned for one season with Fujairah, whom he left to join Pune.

Company%20profile
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Profile of Foodics

Founders: Ahmad AlZaini and Mosab AlOthmani

Based: Riyadh

Sector: Software

Employees: 150

Amount raised: $8m through seed and Series A - Series B raise ongoing

Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.

Scores

New Zealand 266 for 9 in 50 overs
Pakistan 219 all out in 47.2 overs 

New Zealand win by 47 runs

UAE squad to face Ireland

Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind

Squads

India: Kohli (c), Rahul, Shaw, Agarwal, Pujara, Rahane, Vihari, Pant (wk), Ashwin, Jadeja, Kuldeep, Shami, Umesh, Siraj, Thakur

West Indies: Holder (c), Ambris, Bishoo, Brathwaite, Chase, Dowrich (wk), Gabriel, Hamilton, Hetmyer, Hope, Lewis, Paul, Powell, Roach, Warrican, Joseph