Egyptian President Abdel Fattah Al-Sisi announced on Sunday that revenue from the Suez Canal has decreased by 50-60 percent this year, equating to a loss of USD 6 billion (EGP 289.85 billion) The decline, he stated, is due to escalating geopolitical tensions in the region.
Speaking during the graduation ceremony for new police cadets at the Police Academy in New Cairo, Al-Sisi addressed the economic challenges facing Egypt. “Geopolitical conditions have negatively affected Suez Canal revenues,” he said, adding that the current developments are deeply concerning and could lead to further escalation of conflict in the Middle East.
The region has been experiencing heightened tensions since 7 October , following the outbreak of Israel’s war on Gaza and recently with Israel’s strikes on Lebanon.
The assassination of key Hezbollah figures, including its leader Hassan Nasrallah, has further fueled instability. Meanwhile, disruptions caused by Houthi attacks on vessels in the Red Sea have also significantly impacted navigation and canal revenue.
Despite these challenges, Al-Sisi assured that Egypt’s overall economic situation remains stable and continues to show signs of improvement.
In July, the Central Bank of Egypt reported that Suez Canal revenues fell to USD 5.8 billion in the first nine months of the fiscal year, compared to USD 6.2 billion in the same period of the previous year. The bank attributed the decline primarily to shipping route changes caused by ongoing tensions in the Red Sea.
The Suez Canal remains a vital source of hard currency for Egypt. This man-made waterway, connecting the Mediterranean to the Red Sea, provides the shortest maritime route between Asia and Europe and the fastest passage from the Atlantic to the Indian Ocean.
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