Admiral Ossama Rabiee, chairman and managing director of the Suez Canal Authority, recently revealed that the canal’s revenues declined over 60 percent year-on-year in 2024 as a result of the ongoing events in the Red Sea and Bab el-Mandeb, which negatively affected navigational traffic through the Canal and the sustainability of global trade.
This means that Egypt lost nearly $7 billion in 2024.
Suez Canal modernization
In a recent meeting with President Abdel Fattah El-Sisi, Admiral Rabiee also discussed the ongoing projects to modernize the Suez Canal’s navigation route to enhance its value and role in global supply chains and trade. These projects include the completion of the entire southern sector project and the expansion of the navigation route from 132 kilometers to 162 kilometers to allow for the passage of giant vessels.
Upgrades to the Suez Canal also include the completion of the full duplication of the navigation channel from 122 kilometers to 132 kilometers, which will help increase cargo volume and speed up the movement of vessels in both directions.
Rabiee also briefed the president on the measures the Suez Canal Authority took to address the challenges in the Red Sea and Bab el-Mandeb, as well as ongoing efforts to modernize the fishing fleet according to international standards, using the latest advanced technological systems.
For his part, President El-Sisi gave directives to continue the completion of the canal development projects, with the aim of providing the best maritime services and reinforcing the canal’s role as a key pillar in global trade. He also gave directives to continue the modernization of the Egyptian fishing fleet in line with the latest international standards to strengthen this vital sector’s role in serving the national economy.
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IMF gives Egypt access to $1.2 billion
This came after the International Monetary Fund on Tuesday reached an agreement with Egypt, allowing the country to access about $1.2 billion, subject to approval by the executive board.
“The Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regional tensions that are causing a sharp decline in Suez Canal receipts,” stated Ivanna Vladkova Hollar, the IMF’s Egypt mission chief.
In light of the difficult external conditions, as well as a challenging domestic economic environment, the authorities requested a recalibration of their medium-term fiscal commitments. In this regard, the primary balance surplus is expected to reach 4 percent of GDP next fiscal year and then increase to 5 percent of GDP in FY 2026/27, in line with earlier commitments.
“This short-term recalibration seeks to ensure that fiscal consolidation provides some space to increase critical social programs in support of vulnerable groups and the middle class while ensuring debt sustainability,” Hollar added.
