President Abdel-Fattah El-Sisi said that the revenue from the Suez Canal has dropped 40-50 percent this year, alluding to the effect of Houthi attacks on shipping in the Red Sea.
El-Sisi’s remarks came during the inauguration of the seventh edition of Egypt Energy Show (EGYPES 2024), held at Al-Manara International Conference Centre in New Cairo, under the theme “Driving Energy Transition, Security, and Decarbonisation.”
During the 2022/2023 fiscal year, Suez Canal revenues hit a record-breaking $9.4 billion. Canal revenues are a key source of foreign currency for the country alongside tourism and remittances.
The president pointed to the economic impications of past and current challenges facing Egypt, including the COVID-19 pandemic and the Russia-Ukraine crisis, as well as the turbulence along Egypt’s borders with Libya, Sudan, and the Gaza Strip.
“All this is going on while the Egyptian government is committed to fulfilling its obligations with petroleum companies, development partners, and financial institutions,” El-Sisi noted.
The president emphasized that Cairo has been diligently attempting to fulfil its commitments, even though they require significant financial resources.
He expressed readiness to undertake further commitments if additional financing opportunities arise.
Earlier in January, the Suez Canal Authority’s Chairman Osama Rabie announced that ship traffic in the Suez Canal decreased by 30 percent compared to the same period last year.
The number of vessels passing through the Suez Canal dropped to 544 in the first two weeks of January, down from 777 in the same period of 2023, Rabie said at the time.
He added that the dollar revenues from the Suez Canal have decreased by 40 percent and the loads shrank by 41 percent during the same period.
Tensions between Western powers and Houthi rebels are high in this crucial navigation corridor.
The Houthis, who control much of Yemen but are not recognized internationally, have repeatedly targeted Israel-linked vessels with strikes near the strategic Bab Al-Mandeb Strait in the Red Sea to pressure Israel over its deadly war on the Gaza Strip.
In recent weeks, the US and the UK have conducted airstrikes against Houthi targets with the Yemen rebels responding with targetting of American and British ships.