Regional challenges cost Egypt $7bln of Suez Canal revenues

Egypt lost more than 60% of the canal’s revenues in 2024 compared with 2023

Events in the Red Sea and regional challenges cost Egypt around $7 billion in revenues from the Suez Canal in 2024, Egyptian President Abdel Fattah al-Sisi said. Egypt lost more than 60% of the canal’s revenues in 2024 compared with 2023, Sisi added, without going into details on the events.

Houthi fighters in Yemen have carried out nearly 100 attacks on ships crossing the Red Sea since November in solidarity with Palestinians in Israel’s war in Gaza. The attacks have forced shipping firms to divert vessels from the Suez Canal to longer routes around Africa, disrupting global trade by delaying deliveries and sending costs higher.

Admiral Ossama Rabiee, chairman and managing director of the Suez Canal Authority, in a recent meeting with El-Sisi, 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.

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.