With the world distracted by a devastating pandemic, the long-simmering Nile water dispute pitting downstream Egypt and Sudan against upstream Ethiopia is moving towards boiling point, with potentially disastrous consequences for the region.
Addis Ababa is about to or has already made good on its threat to start filling the reservoir of its $4.6 billion (Dh16.9bn) dam on the Blue Nile without waiting for an agreement with Cairo and Khartoum on its operation.
Whichever the case, Ethiopia’s action would probably spell the end of future talks to resolve the dispute and a possible outbreak of hostilities after nearly a decade of negotiations.
Their failure has left Cairo and Addis Ababa trading increasingly bitter accusations, blaming each other for the deadlock and fuelling nationalist sentiments to a frenzy.
Egypt relies on the Nile for more than 90 per cent of its water needs.
Any significant reduction in its water share, it insists, would put hundreds of thousands out of work and disrupt its food supply network.
It wants Ethiopia to guarantee the release of enough water during droughts and agree to a binding system for settling future disputes.
Ethiopia has rejected these demands, saying Egypt has long enjoyed the benefits of colonial-era agreements giving it most of the river’s water without heeding the needs of the 10 other Nile Basin countries.
It says the dam will provide electricity for two thirds of its mostly poor 100 million people, who live in darkness.
Addis Ababa plans to export the surplus to its neighbours.
Sudan, with its border about 30 kilometres away from the dam site, fears that large areas of its territory will be flooded and its own hydroelectric dams closed if the Grand Ethiopian Renaissance Dam, is not run efficiently.
But the energy-starved country also stands to buy cheap electricity from the 6,000-megawatt dam when completed.
With so much at stake for Egypt, there is growing talk about a military strike to disable the dam and force Ethiopia into an agreement that secures the interests of all three nations.
President Abdel Fattah El Sisi has not spoken publicly about a military resolution to the dispute, but that option has never been taken off the table.
Ethiopia took that possibility seriously, posting a large number of troops in and around the dam, along with an air-defence system.
Mr El Sisi has on two occasions said his country’s share of the Nile water amounted to an existential issue and that he would never accept an imposed status.
The two statements suggest a compromise may not be on the cards.
More recently, Mr El Sisi publicly ordered his vast and well-armed military to be prepared for combat operations abroad.
Egypt appears to be in a belligerent mood. Mr El Sisi has recently warned adversaries that Cairo was prepared for military intervention in neighbouring Libya if forces backed by Turkey further advanced eastwards.
"Military action is not the preferred option at any rate, but it can be a last resort if the doors and windows of political solutions are slammed shut and the nation's very existence, security and future are threatened," respected analyst Abdullah Al Sinnawy wrote in Al Shorouk daily.
Mr Al Sinnawy named the challenges facing a military strike, including significant damage to Egypt’s standing in Africa and the prospect of any future co-operation with other Nile Basin countries.
“All that might be true but it’s impossible to accept death by thirst with satisfaction, silence or a tied pair of hands when the country’s existence is threatened by a water shortage,” he wrote in Thursday edition.
Egypt and Ethiopia do not share a border and a strike against the dam would be tough to explain as self-defence.
But Cairo has in recent years acquired cutting-edge weapons that enable its military to operate effectively beyond its borders.
Recent buys include German submarines, French-made Raphael jet fighters and high-seas troop carriers equipped with Russian assault helicopters.
They come on top of billions of dollars’ worth of US-made weapons acquired under an aid programme that began in the late 1970s and includes warships, helicopter gunships and F-16 jet fighters.
Michael Hanna, a Middle East expert from the New York Century Foundation, believes Egypt may find it difficult to compromise with what it sees as Addis Ababa’s intransigence.
But direct military action against the dam or its facilities would be politically costly.
"Ethiopia has divisions that can be exploited, yet covert operations or the use of proxies to take advantage of them would be easily traced back to Egypt," Mr Hanna told The National.
“If Egypt tries to escalate, the Ethiopians can go ahead and just fill the dam, with world powers maxed out on their own domestic issues, from the pandemic to economic depression, as well as a US election later in the year."
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Company%20profile
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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.
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
ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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Zidane's managerial achievements
La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
More on Quran memorisation:
The five pillars of Islam
ALRAWABI%20SCHOOL%20FOR%20GIRLS
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
The five pillars of Islam
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UNSC Elections 2022-23
Seats open:
- Two for Africa Group
- One for Asia-Pacific Group (traditionally Arab state or Tunisia)
- One for Latin America and Caribbean Group
- One for Eastern Europe Group
Countries so far running:
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Day 4, Dubai Test: At a glance
Moment of the day Lahiru Gamage appeared to have been hard done by when he had his dismissal of Sami Aslam chalked off for a no-ball. Replays suggested he had not overstepped. No matter. Two balls later, the exact same combination – Gamage the bowler and Kusal Mendis at second slip – combined again to send Aslam back.
Stat of the day Haris Sohail took three wickets for one run in the only over he bowled, to end the Sri Lanka second innings in a hurry. That was as many as he had managed in total in his 10-year, 58-match first-class career to date. It was also the first time a bowler had taken three wickets having bowled just one over in an innings in Tests.
The verdict Just 119 more and with five wickets remaining seems like a perfectly attainable target for Pakistan. Factor in the fact the pitch is worn, is turning prodigiously, and that Sri Lanka’s seam bowlers have also been finding the strip to their liking, it is apparent the task is still a tough one. Still, though, thanks to Asad Shafiq and Sarfraz Ahmed, it is possible.
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 five pillars of Islam
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
The Cairo Statement
1: Commit to countering all types of terrorism and extremism in all their manifestations
2: Denounce violence and the rhetoric of hatred
3: Adhere to the full compliance with the Riyadh accord of 2014 and the subsequent meeting and executive procedures approved in 2014 by the GCC
4: Comply with all recommendations of the Summit between the US and Muslim countries held in May 2017 in Saudi Arabia.
5: Refrain from interfering in the internal affairs of countries and of supporting rogue entities.
6: Carry out the responsibility of all the countries with the international community to counter all manifestations of extremism and terrorism that threaten international peace and security