Suez Canal Authority’s Chairman Osama Rabie recently reported that dollar revenues from the canal declined by over 40 percent. Moreover, ship traffic saw a 30 percent decrease compared to the same period last year.
During the inauguration of the seventh edition of the Egypt Energy Show (EGYPES 2024), President Abdel Fattah El-Sisi emphasized Egypt’s commitment to navigating economic challenges amidst global and regional turbulence. He also emphasized the country’s commitment to driving the energy transition and decarbonization.
During the 2022-2023 fiscal year, revenues for Suez Canal soared to a record-breaking $9.4 billion. This reaffirmed its significance as a key source of foreign currency for Egypt alongside tourism and remittances. However, due to rising tensions in the Red Sea, shipping activity in the canal took a great hit.
Economic implications
El-Sisi acknowledged the economic implications of past and current challenges, including the COVID-19 pandemic, the Russia-Ukraine crisis, and instability along Egypt’s borders. Despite these challenges, Egypt remains committed to fulfilling its obligations with petroleum companies, development partners, and financial institutions through the Suez Canal.
The president also underscored Cairo’s diligence in fulfilling commitments, even amidst significant financial demands. Moreover, El-Sisi expressed readiness to undertake further commitments if additional financing opportunities arise. He highlighted Egypt’s proactive stance in navigating economic complexities.
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Tensions in navigation corridor
Tensions have escalated in the strategic navigation corridor, particularly near the Bab Al-Mandeb Strait in the Red Sea. Consequently, this affected maritime activity passing through the strategic Suez Canal.
Despite the mounting challenges, President El-Sisi underscores Egypt’s resilience in the face of economic challenges and its commitment to maintaining stability amidst regional and global turbulence. As Egypt navigates the energy transition and decarbonization agenda, its strategic position in global trade corridors like the Suez Canal remains pivotal, emphasizing the importance of ensuring maritime security and stability in the region.
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