President Abdel-Fattah Al-Sisi announced at the Egypt Energy Show (EGYPS 2024) that Suez Canal revenues have dropped by 40-50 percent this year compared to the year before, a shortfall the President attributed to Houthi attacks impacting Red Sea shipping, reported state media Al-Ahram.
In recent weeks, rising tensions in the region between Western powers and Yemen’s Houthi rebels have intensified. Citing threats posed by the Houthis, both the U.S and the U.K. have carried out airstrikes on targets on Houthi targets in Yemen, with the Houthis retaliating by targeting American and British ships.
As a result, Suez Canal traffic has been suffering. In January, Suez Canal Authority Chairman Osama Rabie reported a 30 percent decrease in ship traffic compared to the same period in 2023. Corresponding dollar revenues also fell by 40 percent, and total freight traffic declined by 41 percent.
At the EGYPS 2024, Al-Sisi highlighted these declining revenues in the context of other persistent economic struggles, including impacts from the Russia-Ukraine crisis and lingering repercussions of the COVID-19 pandemic.
Despite the mounting challenges, Al-Sisi stressed that Egypt remains committed to meeting its financial obligations to petroleum companies, development partners, and various institutions.
The Suez Canal, a major international waterway, is a vital artery for Egypt’s economy. The significant decline in revenue disrupts this critical income stream, potentially limiting the government’s ability to respond to both ongoing and emerging economic challenges.
Income from the Suez Canal plays a key role in funding Egypt’s foreign currency reserves alongside remittances and tourism. Record highs of nearly USD 9.4 billion in canal revenue during the 2022/23 fiscal year underscore the severity of the current drop.
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[…] Latest reviews from native media point out President Abdel-Fattah El-Sisi acknowledging a notable drop in Suez Canal revenues, ranging between 40-50 per cent in comparison with the earlier 12 months. He attributes this decline to Houthi assaults affecting transport within the Pink Sea. Moreover, authorities disclosed in January that Suez Canal income had declined by 30 per cent for the reason that starting of the 12 months in comparison with the identical interval in 2023. […]
[…] Recent reports from local media indicate President Abdel-Fattah El-Sisi acknowledging a notable drop in Suez Canal revenues, ranging between 40-50 per cent compared to the previous year. He attributes this decline to Houthi attacks affecting shipping in the Red Sea. Furthermore, authorities disclosed in January that Suez Canal revenue had declined by 30 per cent since the beginning of the year compared to the same period in 2023. […]